InvestWithAlex.com 

China Enters Bear Market Territory. USA To Follow?

z23

Hang Seng Index “officially” entered into a bear market territory after being down 20% since December of 2013. Irrelevant or a leading indicator? I believe it’s the latter. Based on my mathematical and timing work, the bear market in US Equities will begin shortly. When it it’s all said and done it will take 2.5 years to complete. If you would like to know the exact start date for the bear market as well as it’s internal composition, please Click Here.   

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

China Enters Bear Market Territory. USA To Follow?  Google

China stocks enter bear market, here’s what it means for you

China’s benchmark Hang Seng index wasn’t having the best stretch since late last year, but Janet Yellen’s comments that a tightening of rates could come sooner rather than later did not sit well in the Far East. Chinese stocks dropped nearly 2%, sending the Hang Seng index into the dreaded bear market since it is now down 20% since December 2nd.

U.S. stocks are faring better today, but ripples abroad do tend to make waves, eventually. “You are interested in the Chinese market,” says Jon Najarian, co-founder of optionMONSTER in the attached video. “Over the last week or so, Chinese internet stocks are down 15 to 20%, some of them that much in a day. So that’s been a real area of concern,” he says, and rightfully so. “The revenue that they were generating…that was already accounted for, and the numbers were still so bad.”

But it’s not just high-flying Chinese internet stocks. Chinese commodities and materials companies are down, including Warren Buffett’s big bet on electric cars, BYD. The battery and electric vehicle maker slid an astounding 14% today, hitting a five-year low.

Najarian voices concern that many have suspected, that there is a severe demand problem for goods in China outside some of the major cities.  Not to mention issues that have occurred with accounting. “I’m one of them,” Najarian says of individuals frightened by the lack of proper accounting standards in China.

Weakness in China may also affect one of the most hotly anticipated IPOs, Alibaba’s. Wall Street is expecting Alibaba to push over $150 billion in valuation, possibly raising more than $16 billion in a U.S. filing, which would be the largest IPO since Facebook (FB). “If China continues in a weak mode,” Najarian says, “that’s not good for the Alibaba IPO,” since Alibaba’s value is predicated upon growing demand among the Chinese for goods and services.

Najarian ultimately concludes that longer term, you do want be owning certain Chinese stocks, but that you need to “scale into them,” or buy small chunks on weakness.

Stock Market Update. March 20th, 2014 InvestWithAlex.com

Daily Chart March 20, 2014 investwithalex

A good follow through today with the Dow Jones up +108 points (0.67%) and the Nasdaq up +11 points (0.26%). 

Thus far, the stock market continues to perform just as anticipated. Even though we are starting to see a lot of fairly “unenthusiastic” economic data, massive imbalances, outright speculation and a number of geopolitical/macroeconomic issue, the market continues to climb as if completely oblivious to all of the above. 

This type of a setup drives the bears up the wall. Understandably so. Listen, the market is doing exactly what it should be doing. It is tracing out an exact mathematical structure behind the scenes. It will only start the proposed bear market when the time is right. Only after an important mathematical point of force is hit will the market be ready to roll over. That time is fast approaching. In fact our premium members got the following data on the upcoming turning point. 

Date: XXXX
Price: XXXX

As I have indicated on this site since the beginning, the bear market of 2014-2017 is about to start. If you would like to find out the exact date and the internal composition of the upcoming bear market (short term moves) please Click Here.  

Please Note: XXXX is available to our premium subscribers in our + Subscriber Section. It’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

Stock Market Update. March 20th, 2014 InvestWithAlex.com Google

As Cold War 2 Starts, Pentagon Says It’s Not Ready

As Cold War 2 between the US and Russia continues to escalate, according to the article below, Pentagon is not ready to fight a war with Russia. Even a cold war. I guess it’s a little bit more difficult than blowing up a 1981 Toyota Pickup full of Taliban fighters

“For years there have been only a handful of people consistently talking about Russia and China building highly advanced systems for use against our ‘Cold-War era’ aircraft, missiles and ships”.

Let me get this straight. The US spends more money on defense than the next 10 countries combined, is expected to spend $1.5 Trillion on new F22/35 fighters and it’s still not ready? Just another illustration how out of sinc our government is. Take a look at this chart….

pentagon expenditure

cold war 2 investwithalex

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

 

As Cold War 2 Starts, Pentagon Says It’s Not Ready  Google

Pentagon Not Ready for Cold War 2

There’s an old saying in the military that we’re always training for the last war, so fixated on the lessons of our most recent conflict that we’re blind to the emerging threat.

For years, that last war was the Cold War, and the emerging threat was the insurgents of Iraq and Afghanistan. Slowly, painfully, eventually, the military reoriented itself. The result? After more than two decades of post Cold War re-alignment, the military is less prepared than it has been in generations for a confrontation with Russia.

No one in Washington is calling for the U.S. to go to war over Crimea and there are plenty of reasons why, at this point, military intervention could be a dangerous and foolhardy course. But if circumstances change and political leaders start looking to the military or the bargaining power that comes from a credible threat of force, they will find their options severely limited.

Over the course of the wars in Afghanistan and Iraq soldiers and marines have trained for maneuvering and fighting in small units over the landscape of the Middle East. Counter-insurgency (“COIN”) doctrine, which stresses engagement with local civilian populations and tactics for fighting loosely organized forces employing light weapons, has become the military’s new bible. It’s about as far away as you can get from the principles used in the Cold War.

According to retired General David Deptula, who served as the Air Force’s top intelligence officer, “we’ve been focused on the far left end of the spectrum of operations,” by which he means the protracted, low-intensity conflicts in Iraq and Afghanistan. But, he says, “if we want to maintain superpower status we need to be prepared to succeed across the full range of operations, not just the left end of it.” 

Even the few strategists that weren’t pre-occupied by Iraq and Afghanistan were planning for the much-touted Asia pivot, envisioning a future, one they’d argue is still looming, defined by Chinese hegemony. Russia, meanwhile, was considered by many to be an historical relic; still big enough to wield real power but no longer capable of threatening U.S. vital interests and a second or third order afterthought when evaluating threats the military needed to plan for

“For years there have been only a handful of people consistently talking about Russia and China building highly advanced systems for use against our ‘Cold-War era’ aircraft, missiles and ships,” Deptula says.

He’s talking about himself and some of his closest confidants at the Air Force, who pushed for continued production of high-end weaponry like the F-22 stealth fighter—right when the Iraq insurgency was at its peak. It made Deptula and his gang seem like Mach 2 dinosaurs, pining for a conflict with an imaginary enemy while the real bad guys were blowing up Marines in Fallujah. Understandably, Robert Gates, the Defense Secretary of the time, wanted the military to focus on the wars America was actually fighting at the moment. And so eventually, many of Deptula’s colleagues—including Gen. Michael “Buzz” Moseley, the Air Force’s top officer—were shown the door when they opposed Gates once too often. According to Deptula, “those people were ignored by [former Defense Secretary] Gates, and some were fired because they had the courage to speak truth to power.

As the White House and Pentagon planners consider what to do if Russia invades Eastern Ukraine or deploys its forces elsewhere in the region, the limited choices available reveal just how profoundly the military has changed since the Cold War.

For half a century, Cold War military strategy focused on containing Russia and winning in clashes between large conventional forces. On the ground, that strategy called for mass formations organized around tanks and heavy weaponry. In the skies it relied on dominance in Top Gun style style air-to-air fighting prowess, radar evading stealth technology, and powerful bombers that could drop massive munitions to destroy enemy armor and fortified installations.

Since the end of the Cold War, that strategy has been completely overhauled. Training and doctrine have focused on small unit tactics while new weapons and vehicles have been designed with squads in mind rather than divisions. Super-sophisticated dogfighters, like the $187 million-a-pop F-22, suddenly seemed too fancy to actually use. Who would fit the bill if one actually went down? Instead, drones costing less than a tenth the price littered the skies over Afghanistan and Iraq.

But those drones are useless against any military with a half-decent system for shooting down enemy aircraft. And Russian has one of the best air defenses on the planet. Suddenly, it’s those iconic Predator drones that seem obsolete.

“Hopefully the situation with Russia and Ukraine will be a bucket of cold water on those who believe all we need to be able to do is counter-insurgency operations,” Deptula told The Daily Beast.

And now, there are signs that the U.S. Air Force’s long-held technological advantage may be eroding.

The new generation of Russian fighter plane, the T-50, isn’t yet fully operational but it “will be produced much sooner that Gates and his crowd predicted,” Deptula says. He adds that “once the T-50s are produced in sufficient numbers there won’t be anything in the NATO fleet that can deal with them except the F-22s and F-35s.”

David Axe, the long-time military tech writer notes that the T-50, which can fire long-range missiles while flying both high and fast, may be able to “exploit critical vulnerabilities in U.S. and allied forces and level the air power playing field for the first time in a generation.”

An independent Australian think tank, Air Power Australia, drew a more severe conclusion.  “If the United States does not fundamentally change its planning for the future of tactical air power, the advantage held for decades will be soon lost and American air power will become an artifact of history.”

While Russian aircraft rely on speed and long flight times, the U.S. fleet is largely built for stealth so it can evade detection and anti-air weapons to engage targets at closer ranges. But the stealth capability, is now being challenged by advances in Russia’s radar detection platforms and anti-aircraft weapons.

“Today,” Deptula said, “the Russians have an extant significant advantage in their surface to air capabilities.” And that with the exception of the U.S.’s small number of highly advanced 5th generation aircraft, “the Russians can conduct area denial of any airspace within range of their defenses if they want to deny access to aircraft.”

Since 2001, the Pentagon has had good reasons for prioritizing spending for troops on the ground in Iraq and Afghanistan over speculative needs for future wars, but a consequence has been that we now have what Deptula calls “a geriatric Air Force and Navy fleet.”

No one, not even Deptula, is suggesting that there’s about to be some all-out showdown between Moscow’s military and Washington. But it’s not at all unlikely, given the new and chilly climate, that American forces and allies could wind up in skirmishes with proxies equipped and trained by Russia. The U.S. used to be able to count on an overwhelming technological advantage. Tomorrow, maybe not.

Foreshadows of this are already being cast. Already, Russia is outfitting the Assad regime in Syria while America runs guns to the rebels there. It’s the Russian side that’s winning.

The change isn’t just about equipment or tactics, though, American forces trained in counter-insurgency who are stationed in Europe could still be deployed to hold the line against Russian advances. But there are drastically fewer forces left in Europe available to be called upon in such an event.

An analysis of Defense cuts published by the conservative American Enterprise Institute in 2013 reported that “the Army alone has closed 100 installations in Europe since 2003 and plans on returning an additional 47 installations to host nations by 2015.” The same report notes, “the Navy has also been consolidating and decreasing its European bases” and “since 1990, the Air Force has reduced aircraft and forces stationed in Europe by 75 percent.” Addressing the future of America’s military footprint in Europe, the paper concludes that the Pentagon is “planning to continue reducing the US presence in Europe by approximately 15 percent over the coming decade.”

The military can’t be equally prepared for every threat and if its focus has been on counter-insurgency, that’s because those are the wars we’ve been fighting for the past twelve years.

Generations of veterans who fought in Iraq and Afghanistan have been raised and bled on COIN doctrine but, as combat demands, they have also learned how to be agile. Individual leaders on the battlefield are able to adapt quickly; it’s the military bureaucracy that’s like a tank: a slow, immensely powerful machine that’s only capable of plotting one course at a time. Quick turns are not an option.

Without many viable military options to counter Russian aggression what’s left for U.S. leaders seeking to punish Russia and assure our NATO allies that we’ll protect them? Cunning diplomacy, maybe.

Crimea is Russian now; that’s not changing any time soon. Condemning the invasion and the fixed terms of the referendum have no more bearing on the current situation than the reasons Russia gave for annexing Crimea—some of them legitimate—ultimately had to do with the duplicity and force they used to take it. 

The real question, and the subtext in much of the current talk about Crimea, is whether Russia will stop there or proceed to further conquests. 

Despite it’s show of force in Crimea, Moscow has a lot to lose if the conflict broadens and draws in the U.S. and NATO. Russia has gas to sell to Europe, oligarchs counting on feeling comfortable in their London townhouses, a new middle class looking for normalcy that’s already taken to the streets in protest, and the memory of Chechnya, a brutal war that took thousands of lives, fresh in the national memory.

If U.S. officials can present a deal that satisfies American aims while appealing to Russia’s self-interest, they may be able to prevent a larger conflict. But a new age of competition with Russia? That may be even harder to head off.

Guillotine Sales Booming In Europe

Earlier we initiated coverage and issued a BUY recommendation on Guillotine International, Inc (Nasdaq: HEADOFF) on anticipated surge in sales here in the USA. To our surprise, sales first initiated their surge in the Eurozone  where unemployment remains at 12%. With forecasted decline in the unemployment rate of only 1% over the next four years we expect this sales trend to continue.

Further, with the bear market of 2014-2017 and global recession just around the corner we anticipate the sale of GI new “5 Heads At Once” model to do very well around the globe. Particularly, with youth unemployment at close to 50% in both Spain and Greece, we expect to see triple digit growth in such markets. With the company selling at 1X it Book Value, it’s a Strong Buy. 

guillotine

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

 

Guillotine Sales Booming In Europe Google

‘Dire’ consequences loom for jobless Europe

While there are reasons for “cautious optimism” as the euro zone shows signs of economic recovery, high unemployment in the region will fall by just one percentage point in the next four years and in some areas it will spike before dipping, a new study finds.

Stubbornly high unemployment rates not only pose a real threat to the recovery, as consumer demand will remain subdued, but young people are also at risk of spending less time in employment, creating potentially “dire” consequences for businesses.

Unemployment in the euro zone is currently sitting close to a record high of 12 percent, and is forecast to fall at a very slow rate over the next two years before reaching 11 percent by 2018, according to the spring EY Eurozone Forecast (EEF).

Figures from European Union’s statistics agency show approximately 19.175 million are without a job across the euro zone and in Greece, unemployment is set to climb to 28 percent this year before it falls by 3 percent in 2018.

Youth unemployment in both Greece and Spain have reached a staggering 50 percent, presenting “major concerns” in terms of social tensions, education and labor mobility, the EEF said.

“In countries such as Spain, where half of young people remain out of work, with little prospect of a job, the risk of a “lost generation” is very real,” the report found.

“This waste of human capital, alongside a lack of fixed capital investment, means that productive capacity is lost over time and sustainable growth becomes more difficult. The consequences for businesses could be dire.”

Within the 18 member states, unemployment differs “wildly”, with Austria set for a jobless rate of 4.6 percent in 2014-18, unemployment in Greece is still projected to be close to 25 percent in 2018.

Young people who spend significant period of time out of work tend to spend less time in employment and on average earn lower wages over the rest of their lives according to the study.

The Real Secret Behind Warren Buffett’s Success Is Finally Revealed

warren_buffet

 “I buy expensive suits. They just look cheap on me”
-Warren Buffett

KEY STATISTICS:  (Date of Analysis: November 7th, 2013)

Full Name: Warren Edward Buffett

STARTING CAPITAL: ZERO

NET WORTH NOW: $59 Billion (2013)

  • Date of Birth: August 30th, 1930 (age 83) Omaha, Nebraska
  • Current Residence: Omaha Nebraska
  • Parents: Howard Buffett and Leila Buffett
  • Education: Columbia Business School
  • Occupation: Chairman & CEO of Berkshire Hathaway
  • Family Life: Married to Astrid Menks (2006-present).  3 Children: Susan, Howard, Peter

QUICK SUMMARY:

Warren Buffett was born in 1930 to Howard Buffett a stock broker/US Representative and Leila Howard a housewife in Omaha, Nebraska. Buffett’s early life was unremarkable in many ways. Being born in the midst of a Great Depression to a typical American family and living in the heartland has allowed Buffett to learn American values from an early age. Starting his school in Omaha, Buffett later moved to Washington DC after his father was elected to the United States Congress.

Even from an early age Buffett showed that he had interest in stocks and an Entrepreneurial spirit. He often spend time in his father’s brokerage company trying to learn all that he could about stocks, finally pulling the trigger on his first stock investment at the age of 11. His young entrepreneurial exploits of buying soda, gum, investing in farms and other businesses is well documented as well. In 1950 he entered into a Columbia University Graduate School of Business to study under a well known analyst and investor Benjamin Graham (author of classic “The Intelligent Investor“) and that’s where Buffett’s story really begins.

After getting his graduate degree from Columbia in 1951 Buffett literally begged Benjamin Graham for a job at Graham’s investment firm for 3 years.  At the time Graham didn’t think much of Buffett and turned him down on numerous occasions. That is until he reluctantly agreed to hire Buffett in 1954, most likely because he was sick of Buffett pestering him. Buffett worked for Graham in New York until 1956, the year Graham has decided to close down his business.  

After closure, Warren Buffet moved back to Omaha to start his own investment partnership (aka hedge fund). Starting with a little over $100,000 raised ffamily and friends, Buffett has managed to accumulate a personal net worth of close to $25 Million in just 13 years by investing in undervalued stocks. In 1969 Buffett liquidated his investment partnership and returned all of the capital to investors.  At the same time he kept most of his money invested in various companies, including Berkshire Hathaway, a company that he eventually brought under his control.

Thereafter, through his control of Berkshire Hathaway and through a series of brilliant investments spanning multiple decades Buffett has turned his $25 Million fortune into a $59 Billion mega fortune today. Simply put, Mr.Buffett is a brilliant investor, analyst and an oracle of sorts succeeding beyond belief in one of the most competitive fields in the world. The stock market. What we can learn from him and his approach is priceless.  

FUN FACTS ABOUT WARREN BUFFETT:

  • Warren Buffett, the 3rd richest man in the world, still lives in the $31,500 house he bought in 1957.
  • Warren Buffett gave 85% of his money to charity (mostly to the Bill and Melinda Gates Foundation) to a total of 40.7 billion dollars.
  • Warren Buffett filed his first tax return in 1944, at the age of 14, and took a $35 deduction for the use of his bike and watch on his paper route.
  • In 2010, a lunch with Warren Buffett was auctioned off to a man for $2.63 million dollars
  • If you invested $1000 with Warren Buffett in 1957, you would have amassed upwards of $30 Million today.

WARREN BUFFETT QUOTES:

“If past history was all there was to the game, the richest people would be librarians.”

“Only when the tide goes out do you discover who’s been swimming naked.”

“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

DIFFICULT TIMES & OVERCOMING PROBLEMS:

Being a money manager is one of the most difficult professions in the world. You are constantly dealing with various pressures while trying to perform to the best of your ability. There is no consistency and your world is always volatile (just like the stock market itself). Obviously Warren Buffett has thrived in this environment for many years.

His toughest challenge came in 1991 when Warren Buffett was unwillingly sucked into a huge Salomon Brothers scandal involving the US Government.  Warren Buffett was forced to take over the company as the CEO and manage the company through its darkest days. The company was hours away from being literally destroyed by the US Government and it was only Mr. Buffett’s personal assurance at the time that saved the company. By leveraging his reputation and pushing through the rough times he was able to save Salomon and his own net worth.  

PERSONAL CHARACTER TRAITS:

  • Down To Earth: Even though Warren Buffett is the fourth richest person in the world, he doesn’t show it. He still lives in the house he bought back in 1957 and is not known to splurge on luxury. He lives a simple life to the point where you wouldn’t be able to guess that he is even a millionaire if you see him walking down the street or eating in one of his favorite restaurants in Omaha.  
  • Hard Working: Officially Warren Buffett has been working since 1951 without taking (as far as I know) any real time off. Unofficially, he has been hustling since the age of 8 or for 75 years. Yet, he doesn’t call it work. He has famously said that he tap dances to work every day. Simply put, he loves what he does and its more of a play than work for him.  
  • Fair & Honest: Warren Buffett is famous for saying that rich should pay their fair share of taxes (arguing that they should pay more). He even lobbied the congress to increase taxes. You see the same consistency throughout his business career. He puts a significant amount of premium on his own reputation and believes the only way to get a good one is too be fair and honest in all of his business dealings.
  • A Great Sense Of Humor: Warren Buffett is known for his corky sense of humor and his ability to cut through the bullshit and point out the obvious. His annual report letter to the shareholders is as treasure throve of jokes and incredibly valuable real world advice. It should be on everyone’s reading list.
  • A Masterful Politician:  Even though you wouldn’t think of Warren Buffett as a politician, he is a natural born pro. If you study his career you will never see him take extreme sides of any issue. He is always somewhere in the middle. Even though he knows a lot more than he says, he rarely takes sides either for or against something.

SUCCESS ANALYSIS:

Warren Buffett’s success is very difficult to analyze. First, he wasn’t involved in one company that made him rich. He has built his fortune over the last 57 years, one day at a time and through acquiring over 50 companies that now reside under Berkshire Hathaway. He did have major scores, but a steady annual compounding of his money is what really did it for him. Second, most of his work is analytical in nature and out of the public eye. He spent most of his time analyzing companies and making investment decisions. That in itself is very difficult to pinpoint. Luckily for you, I do something very similar. Here are the factors that contributed directly to his success.

  • Right Timing: While you might not see a direct connection, Warren Buffett’s timing was perfect. If he would have been born just 5 years later, he wouldn’t be as much of a success as he is today. He would still be rich, but probably not that rich. Here is why. US Financial markets started a major BULL move in 1949 and completed it in 1966. Warren Buffett started his investment firm in 1956, giving him 10 years of one of the fastest BULL markets in history to work with. Yes, he is a great stock picker, but having a BULL market at your back makes one hell of a difference. That’s what helped him to accumulate his initial capital of $25 million. If he would have shown up just 5 years later, I doubt he would have been able to accumulate as much capital in the tough bear market years of 1970’s.  With a smaller nest egg to work with, his net worth would be a lot less today.  
  • Loves To Make Money:  From an early age Warren Buffett loved to make money. Starting with selling gum and soda at his school he quickly transitioned to buying farmland and investing in stocks.  While the money itself is meaningless to him, he uses it to keep score and to make sure he is winning.
  • Highly Intelligent & Analytical: I firmly believe that investment world (and not academia) attracts the best minds in the world. Among those people Warren Buffett is the king. Very few have been able to replicate his success over an extended period of time. This speaks to his high level of intelligence and analytics ability. Is he the smartest guy on the planet? Well, even if he is not, he is not that far behind.    
  • Incredibly Aggressive:  You might view Warren Buffett as this grandfatherly character who is always smiling and is a nice person.  Surely he is, but he is a naturally born predator as well. Case in point, his $5 Billion investment in Goldman Sachs in the darkest days of 2008 financial crisis.  He has done the same thing throughout his career on multiple occasions. You have to be aggressive to do that.  
  • Consistency & Concentration:  Starting at a young age Warren Buffett never really deviated from his original investment strategy. He has always made Value Investing his bread and butter and has spent the last 75 years perfecting his skills. I believe sticking to what he knows and understands the best is what has made him a huge success.
  • Balls Of Steel:  If you have ever been in an investment business you know that at certain points you will be standing on a edge of a cliff looking down into the deep abyss. Just as night follows day, that is unavoidable.  Yet, it is the quality of staying calm while everyone else is freaking out is what separates great investors from everybody else.  Warren Buffett has proved on multiple occasions that he can stand on the brink and whistle without a care in the world. That takes major cojones when billions of dollars are at stake.
  • Great Manager & Motivator:  Delegation and letting his managers run his companies is what has made Warren Buffett so rich.  He is not interested in running day to day operations and he prides himself on finding top management talent, motivating them and letting them do the hard work.
  • Ruthless Shark:  A well known saying in the investment community that is incredibly difficult to follow. As Warren Buffett himself says “Be fearful when others are greedy and be greedy when others are fearful”.  Meaning, one should buy stocks when the blood is running on the streets (Ex: 2007-2009 collapse). Yet, very few investors can do that. Warren Buffett has done so consistently throughout his long career.

CONCLUSION:

While Warren Buffett seems like a friendly Mr. Rogers from a few doors down the road, he is not. He is a ruthless capitalist who loves making money and allocating capital. I do not believe the money itself play an important role in his life, but the process of making it is everything to him.  It is a score card of sorts that shows him how well he has done and in what areas he needs to improve.

Warren Buffett plays to win. It is no accident that he was named the most successful investor of the last century. Yes, investing provides his with a way to show off his intelligence, but it goes much deeper than that.  Warren Buffett has also redefined the game and has shown everyone that it is possible to take it easy and be nice to people while at the same time being one of the most coldblooded capitalist on the face of this earth.

So, what can we learn from Mr. Buffett to help us become Billionaires as well? Taking out factors that we cannot control, here is what you can replicate.  

  1. Do What You Love: In most cases you will not become filthy rich overnight. Most of us will have to build our fortunes over an extended period of time while working incredibly hard. The only way to do that is to find something that you love and stick to it.  As Warren Buffett says, you must love being in the office.
  2. Fall In Loves With The Money:  There is absolutely nothing wrong with loving money.  In fact, if you don’t love money, you will never attract enough of it into your life. Warren Buffett loves money, so why shouldn’t you?  
  3. Become Aggressive:  As we see with most of our Billionaires you must be aggressive and you must play to win in all of your business dealings. Get it through your head and start winning. 
  4. Consistency & Concentration:  A truly important and timeless quality to have. If you are to become an expert in your field you are bound to outperform your competition.  Plus, maintaining consistency helps you get through the hard time without sacrificing your integrity or the integrity of your business.
  5. Grow A Pair:  Listen, you need to grow a big pair if you want to play with the big boys. Simple as that.  
  6. Delegate:  Find great people and delegate as much work as you possibly can to them. This will allow you to concentrate on more important tasks that you love.
  7. Become Ruthless:  Not ruthless enough to take candy from a crying baby, but ruthless enough to make money from the misfortunes of others.  There is nothing wrong with buying assets when others are fearful or filing for bankruptcy. It’s their problem, not yours. Buy low, sell high. Get rich. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

 

The Real Secret Behind Warren Buffett’s Success Is Finally Revealed Google

warren_buffet

Jim Cramer: Buy Tesla. Time To Short?

Jim Cramer is notoriously known for having bad timing. That’s what happens when one claims to know what every stock in the Universe will do. According to Mr. Cramer Tesla is the next Apple and the time to buy is NOW. 

Is It? 

Tesla is overvalued and highly speculative. If we take Jim Cramers analogy and Tesla is the next Apple, it should be selling at 2.7X revenue (AAPL valuation) or at about $44 a share. Not 15X Revenue or $237 a share. I know this analysis is too simplified and doesn’t take Tesla’s potential into consideration, but it does show you how out of sinc the valuation is.    

Futher, TSLA is testing its lows. If it breaks down, watch out below. There is a large gap around $140 that the stock must close. Finally, highly speculative and overvalued stocks like Tesla do very poorly in bear markets. As our mathematical and timing work indicates, the bear market of 2014-2017 is just around the corner. If you would like to know the exact date of its start and its internal composition, please Click Here. 

mad money investwithalex

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

 

Jim Cramer: Buy Tesla. Time To Short? Google

Elon Musk is maybe the next Steve Jobs. Elon Musk is maybe the next Henry Ford. Elon Musk is maybe the next… Maytag Repairman?

That’s how Goldman Sachs analyst Patrick Archambault is looking at the founder of Tesla. That isn’t to say he thinks Musk will be as lonely as the Maytag Repairman. Rather, Goldman believes Tesla may be viewed in the future as disruptive technology, revolutionary mass-produced vehicle, or transformative consumer product.

But, those are only three possibilities out of five, according to Goldman. The other two is the company will continue as they previously expected or else fail. Assigning weights to all five possibilities and projecting results for the next ten years in each scenario gets Goldman to value Tesla’s automotive business at $180 per share

In a March 18 note, Goldman’s Archambault writes:

“If Tesla’s auto business were to be truly disruptive (to the whole auto industry, not just luxury vehicles), then there would be considerable upside. Keying off the history of the iPhone, (adjusting for the replacement cycle) would imply 3.1mn units by 2025 and a PV [present value] of $442 per share. The Model-T trajectory implies 3.3mn units and $478 per share; and the volume implied by a basket of transformative durable goods (laundry appliances/dishwashers/refrigerators) gets us 1.8mn units and $329 per share. However, this is offset by our base case (broadly unchanged from our previous forecast) and a downside case where Tesla’s present value is lower and hence we arrive at probability weighted share price of $180 for the auto business alone.”

On top of that $180, Goldman also values the company’s battery business – future “gigafactory” and all – at $20. That leaves a price target for Tesla at $200 for the next six months.

Sure, $200 is up from the $170 target Goldman had before. But, that’s still $37 lower than where it traded. Goldman rates the stock as a neutral.

Jim Cramer calls Goldman’s report “hilarious” and believes only one scenario is most likely. “Tesla’s the newApple,” says Cramer on CNBC’s Squawk on The Street

While CNBC contributor Andrew Busch, editor and publisher of The Busch Update, thinks Tesla is an innovative company, he’s not quite sure it can be compared with Apple.

“I don’t know if they’re quite the Apple of the next generation,” says Busch. “Clearly, they don’t have the same platform and broad distribution.”

Tesla makes a very high-end automobile while Apple makes an assortment of consumer technology products. Instead, Busch is enthusiastic about Tesla’s ability to consistently beat earnings estimates. Last month, the company reported 2013 fourth-quarter earnings of $0.33 per share versus and Wall Street’s anticipated $0.21.

“That’s what you look for in a stock,” says Busch. “As long as they keep doing that – keep increasing their sales, keep making technological improvements and advances –keep buying them. And, until they stop that cycle – until they miss – then I wouldn’t sell the stock just yet.”

Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, believes the stock’s volatile technicals match the fundamentals for Tesla.

“The chart is very similar to the fundamental story, which is that it’s quite controversial at these levels,” says Ross. “It’s very easy to call the stock the next Apple or to call it a disrupter. But this is a stock that trades on potential and that potential can be your best friend or your worst enemy.”

After building a base of support since last autumn, the stock broke above resistance, according to Ross’ charts. Sure enough, that level was around the $200 per share. At the beginning of this month, Ross’ Tesla’s chart shows the stock in a flag formation, which is generally the prelude to bullish move. Yet Ross urges some caution.

“Flags have failed before,” says Ross “Given that phenomenal rise over the past few months, you have to [take] it with a grain of salt. I could see a test of that breakpoint around $200 a share. A break below $200 would be a clear sell signal.”

Ross thinks those who are inclined to buy can do so at current levels provided they do so in moderation.

“If you like the story, if you like the potential, if you think it’s the next Apple like Mr. Cramer,” says Ross, “you can buy the stock here. But, just adjust your position size accordingly. There’s a lot of risk but also a lot of reward. Keep the position small and just keep your expectations in check. This is about the future.”

As well, Busch thinks the Tesla’s stock will trade in range of 15% above and below the $200 per share level. With such large swings, Busch also doesn’t believe investors should invest a huge portion of their portfolio on the company.

Millions Of Russians Ask To Be Put On Obama’s Sanction List

Here we go again. Idiot-In-Chief Obama just triggered the next stage of the “Ukrainian” conflict. Thus far, I have been 100% correct on all of the developments associated with Russia/Ukraine/West over the last 4 weeks. In my last post on the subject matter I have said, “Russia is done. It will walk away with Crimea and call it a day. The only thing that will change that is further sanctions against Russia”. While the first round of sanctions was laughable (just as the second one), the second round puts Putin in a position where he MUST respond.

And respond he will. Will Russia now go into east Ukraine, turn off gas or retaliate otherwise is yet to be seen. Based on what Putin said in his speech yesterday, it will be something big. I guarantee you that. And here is what drives me crazy….

Obama noted that the measures were being taken in the full knowledge that the move could be “disruptive to the global economy”.

That’s just exactly what we need. Expect Putin to retaliate shortly. Good job team Obama.

US President Barack Obama.(AFP Photo / Saul Loeb)

US President Barack Obama.(AFP Photo / Saul Loeb)

US puts sanctions on key sectors of Russian economy, top officials, businessmen

US President Barack Obama has announced a new executive order imposing further sanctions on key sectors of the Russian economy and top Russian officials and businessmen. The measures will impact Russian energy, mining, defense and engineering sectors.

We’re imposing sanctions on more senior officials of the Russian government. In addition, we are today sanctioning a number of other individuals with substantial resources and influence who provide material support to the Russian leadership, as well as a bank that provides material support to these individuals,” Obama said.

The new list of sanctioned officials includes 20 names, according to the list published by the US Department of Treasury.

Aleksey Gromov, First Deputy Head of the Presidential Administration; Sergey Ivanov, Chief of Staff of the Presidential Executive Office; and Sergey Naryshkin, Speaker of the State Duma, the lower chamber of the Russian Parliament, are among those mentioned.

Prominent businessmen Arkady and Boris Rotenberg are also on the list – as well as the Russian Railways president, Vladimir Yakunin and businessman Gennady Timchenko, head of the Volga Group.

Bank Rossiya identified by the Treasury Department as the sanctioned entity will be “frozen out of the dollar,” Reuters reports quoting US officials. Bank Rossiya, headquartered in St. Petersburg, has some $10 billion in assets. Several senior government officials are known to use the bank, and Kovalchuk, who is its head, has also been sanctioned individually.

The new penalties mark the second round of economic sanctions the US has levied on Russia this week. Obama noted that the measures were being taken in the full knowledge that the move could be “disruptive to the global economy”.

The US president made the announcement just under two hours after the Russian Duma ratified the Treaty for the Accession of Crimea and city of Sevastopol to the Russian Federation.

  

Warning: Real Estate Market Begins Its Decline

National Real Estate Propaganda Group (aka The National Association of Realtors) February report is beyond laughable.  Let’s take a look…

U.S. home resales dropped slightly in February to a 19 month-low as cold weather and a shortage of homes for sale continued to sideline potential buyers.

Damn, I forgot about that snow storm in California. In terms of shortage….. call Citi, Blackstone, Wells, Chase, Freddie, Fannie, etc… they should have at least a Million units of your inventory sitting on their balance sheet.  

Even though temperatures remained chilly in February, pinching sales, a modest improvement in inventory on the market indicates buyers are expected to jump in soon.

Sure, millions of buyers are sitting on the side line, waiting to jump in. Whatever makes you guys sleep better at night. 

If you want the truth, stop reading this BS and read my comprehensive Real Estate Report showing you exactly when, how & why our real estate market is about to crash……again. 

flipping real estate investwithalex

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

 

Warning: Real Estate Market Begins Its Decline   Google

Existing Home Sales Edge Down to 19-Month Low in February

U.S. home resales dropped slightly in February to a 19 month-low as cold weather and a shortage of homes for sale continued to sideline potential buyers.

The National Association of Realtors said on Thursday home sales dropped 0.4 percent to an annual rate of 4.60 million units, the lowest level since July 2012, and in line with economists’ expectations. January’s sales pace was unrevised at 4.62 million.

Even though temperatures remained chilly in February, pinching sales, a modest improvement in inventory on the market indicates buyers are expected to jump in soon.

“The weather surely cannot get any worse,” NAR economist Lawrence Yun told reporters. “The new supply will help tame price growth.”

The median existing home price rose 9.1 percent in February to $189,000 from the same month in 2013.

Mortgage rates have risen almost a full percentage point in the past year and the increase in house prices has far outpaced income growth, making home-buying less affordable.

In addition, there has been a shortage of homes for sale on the market. Home resales have declined in six of the last seven months, having peaked in July.

The number of previously-owned homes available for sale at the end of February represented a 5.1 months’ supply, still tepid but up from 4.9 months’ worth in January. A healthy market has about a six-to-seven month supply.

GOLD. The Only Asset That Will Outperform In The Upcoming Bear Market?

gold chart investwithalex

Gold and gold related assets sold off over the last couple of days. Coming down to close a fairly large gap that was opened up on March 12th. Just as it should have. Remember, all financial markets and individual stocks tend to close their gaps. Sometimes it takes just a few days and sometimes decades. Yet, rest assured, the market will close its gaps. Which indicates a short-term bounce for gold in the near future to re-test it’s March 14th top. 

Long-term, gold is very well positioned for a multi year rally. I base this conclusion on my timing and mathematical work and its application to the equity markets. Our mathematical work indicates a fairly strong bear market in the US equity markets between 2014-2017. When the bear market kicks in and the US Economy slips back into a recession, the FED will open up the flood gates…..once again. They will have no other choice. 

Since Gold does fairly well in such an environment, we anticipate Gold to break out above 2013 top and keep going for at least a few years as investors seek safety and an inflation hedge. Further, we believe the bull market in gold will resume itself as soon as the bear in equity markets starts. That should happen relatively soon.  Today’s technical setup confirms this notion as highly probable. If you would like to know exactly when the bear market in equities will start (to the day), please Click Here 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

 

GOLD. The Only Asset That Will Outperform In The Upcoming Bear Market? Google