Argentine Government Hate Foreign Investment

26-Oct-2011 | Reggie | Canadian Investing Commodities Economy Investment Ideas

The Argentine Government is infamous for protectionist policies and poor fiscal management.  Keeping their track record, they today announced that all export revenue stemming from oil, gas, and mining companies must be repatriated, meaning any funds derived from the sale of these natural resources must flow through the country.  This was an increase from the 2002 law which stated that 30% of all revenue has to flow through.

 

The law was passed by Argentine President Cristina Fernandez de Kirchner, who just won her second term on October 23rd.  It was largely expected that rules pertaining to foreign companies would be maintained and many stocks rose on the news of her re-election.  The move is designed to help maintain capital in the country and keep the Peso strong, but the detriment done to foreign investment seems to be a much bigger blow.  The United Nations estimate that foreign investment in Argentina has already decreased by 30% since the beginning of the year.  Companies with significant operations in Argentina all fell on the news.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Euro Debt Crisis Under Control?

12-Oct-2011 | Reggie | Banks Economy Europe

It would seem as though investors are starting to believe that this latest European debt crisis is under control.  Markets throughout the world took some pretty serious hits over the past few weeks as investors headed to the exits based on fears that European banks could begin to collapse.  With the monetary union rallying behind the common cause of keeping the economy afloat, investor confidence seems to be on the rise.

 

The latest refinement of the bailout fund, referred to as the EFSF European Financial Stability Facility, has just been approved by Slovakia, one of the smaller nations of the Eurozone.  The EFSF will have a total value of €750 billion, part of which will be raised by issuing its own bonds that will have an AAA rating. 

 

The other big news is that the Belgian government agreed to nationalize the domestic operations of Dexia bank.  Dexia was in dire straights thanks to the bad European debts it was holding and weak capitalization that resulted.  With not having to worry about a run on the bank, investors and asset holders could take a breath.

 

Also, the Chinese sovereign wealth fund bought shares of the four big banks.  The move is meant to shore up capital of the banks and increase investor confidence.  The Chinese markets were closed when the announcement was made, but shares on the Hong Kong market rallied hard immediately following the announcement. 

 

With this latest round of good news, the TSX has managed to rebound over 1,000 points since the lows hit last week.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Technology and the Future

31-Aug-2011 | Reggie | Market Outlook Technology

Here in Canada there isn’t a whole lot of talk regarding technology.  With commodities having been super hot over the past few years, and RIM seemingly in decline, technology has taken a back seat in many investor’s minds.  However technology has not become less important since the tech bubble burst 10 years ago.  There are many ways in which technology will change our lives and the entire world.

Mobile computing through hand-held devices has spread like wildfire.  It’s estimated that some time this year more people will be using smart phones than regular cell phones.  These people will then be connected to the internet 24/7.  It’s not just the availability that has increased, it’s the number of things you can do using the internet.  Physical credit cards and debit cards are in the process of being replaced by smart phones.  Services such as Netflix and Hulu are changing the way we watch television and movies.  Complicated programs are being written to calculate whether oil and gas wells are economical and the best possible way to optimize production.  Social networking, cloud computing, and mega-fast computers are among the myriad of technological innovations that will probably have a drastic impact on the world as a whole.

Companies like Google and Apple are at the forefront of the latest and greatest in technology thanks to the likes of the mobile Android operating system and iPhone and iTunes.  They may be the big boys that are running the field, but there are many companies that are discovering ways to capitalize on the shift.  Many are composed of engineers and software developers, while others like Wi-Lan are composed of lawyers that sue and enforce different patents on the technologies themselves.  Microsoft and Nintendo changed how people play video games with their movement recognition technologies.  While these technologies are major breakthroughs, there is still much more to come.

Many believe that it is only a matter of time before we are no longer using gasoline and diesel to power our vehicles, but there is no question that computers, internet, and mobile devices are here to stay.  These are technologies that will continue to develop and expand to the masses.  New technologies, features, and abilities will be added constantly to add more and more ways to use the devices in everyday business and consumer life.

 

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Gold Bugs Beware

24-Aug-2011 | Reggie | Commodities Currency USA

 

Just because something goes up, doesn’t mean it has to go down, but in the case of Gold bullion which has risen nearly 25% in value over the past weeks, you start to wonder if the dramatic price increase is reasonable and sustainable. The price of gold started the month of July just under $1500 an oz. Fast forward to August 22nd and we’re looking at $1900 an oz. That type of dramatic increase raises some eyebrows when the main value is to be a store of value.

 

That kind of rapid ascent is usually reserved for more speculative holdings that are subject to huge shifts in supply and demand. The majority of the world’s gold supply is held by governments and central around the world Up until 1971 currencies were linked to the price of gold. A reserve form of currency is something you wouldn’t really expect to increase by 25% in value over a few weeks or nearly double over the past year unless something really awfully terrible was happening in the economy.

 

While some might argue that’s exactly what is going on right now, I believe the facts hang on the other side. TheUnited Statesdropping from AAA credit rating to AA+ according to 1 debt rating agency has been attributed to much of the rapid ascent in the price of gold. While this is not a good thing, it has little to no impact on how theUnited Stateswill continue to operate their country and pay their debtors. The debt issues ofGreecehave also been attributed for much of the rise in Gold. However,Greeceis one of the smallest countries in the European Union and of very little consequence to overall EU productivity. While unfortunate, these types of issues aren’t anything new. Countries are like businesses. They go through ups and downs. First world countries like theUSare not going to disappear and devolve into panic and pandemonium.

 

As always, noted investor and market commentator Dennis Gartman made some very impactful statements regarding the whole gold issue.

“To bring fact to this story, as of last Friday, the SPDR

Gold Trust’s market capitalization rose to $76.7 billion as

gold moved to and through topped $1,880/ounce. The

SPY’s “capitalization” was that day $74.4 billion. It is

senseless that the SPY has a lesser capitalization than

the gold ETF and it will not much longer, either because

stocks rise or gold falls or both; but as Herb Stein said,

that which cannot continue won’t. This won’t.”

As of writing this, the price of Gold is already down over $120 from its peak of $1900/oz and further decline is expected. Some are calling it investors cashing in gains, and others are calling it the end of the bubble.

 

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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United States latest Debt Crisis

14-Jul-2011 | Reggie | Currency FX USA

The United States has run in to a slight problem.  There is an limit on how high their debt can go and unfortunately they have hit that limit.  Since the government is still running a deficit, it is absolutely necessary that this debt ceiling be raised in order for the United States government to continue to function and not default on it’s financial obligations.

 

In order to raise the debt ceiling, its up to President Obama to get the go ahead from Congress.  Congress isn’t making it easy and is wanting some serious spending concessions to be made.  In the midst of this, the United State’s AAA credit rating is being questioned by various rating agencies such as Moody’s and seriously raising investor concerns.  Since some of these concerns have come to light, the US dollar has dropped significantly in value.

 

The deadline is set for August 2nd.  It seems quite unlikely that some sort of deal won’t be reached by then, but investors are on their toes none the less.  The US dollar is and has been the go-to currency for much of the world so the outcome will have very serious consequences.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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