-- Posted Wednesday, 6 June 2007 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Wednesday, June 6, 2007
“Phenomenally accurate forecasts”
The Dow Industrials fell 81 points yesterday, but we view the relatively light damage as a sign of strength, considering the news. Profit warnings were issued by several retailers, and Helicopter Ben was on the tape with yet more “worries” about “inflation.” For a guy supposedly steeped in the lessons of the Great Depression, it’s amazing that the ongoing collapse of the housing market has yet to shift his attention to the real economic threat of debt deflation.
There was a related, negative development in the bond markets, as yields on the 10-Year Treasury Note crept toward the 5% level. Since mortgage rates take their cue from this instrument, it portends even greater pressure on the already imploding real estate sector in the coming months. Higher rates will be weighing not only on home sales, but on the many millions of homeowners with adjustable-rate mortgages.
Of course, all of these pathological woes have been metastasizing for some time without dampening investors’ ardor for stocks one bit. This shouldn’t surprise anyone, given that the stock market is in the midst of a full-blown mania – one as impervious to danger signs as a crack-addict to the warning label on a pack of cigarettes.
We surmised long ago that the stock market had lost its ability to discount trouble in the accustomed way, i.e., by falling. Private equity deals alone have removed hundreds of billions of dollars worth of shares from the market in the last year or so, shrinking supply and making it possible for even relatively tepid demand to drive the broad averages higher. In the absence of any more shards of disturbing news this morning, we should expect tepid demand to rule the markets once again. It may take investors a little while to get used to 5% yields on the 10-Year Note, but once the pill has been swallowed, it will be back to devil-may-care once again until 6% yields beckon on the intermediate horizon.
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Smallest Class Ever?
Only a few Australians have signed up so far for the June 30-31 online Hidden Pivot Seminar, so if small class-size appeals to you, this is the session you’ll want to attend. The seminar will likely be the last I will offer at a time of day that is convenient to students from Australia and New Zealand, but the show will go on regardless of how many students enroll.
If you have been waiting for just such an opportunity, please click here (then click the “Upcoming” tab) to reserve a place in the classroom; or here for detailed information about the course itself. Incidentally, these hours will work for anyone in the U.S. who would prefer to take the course in the evening. The hours, in Eastern U.S. time, are from 6:30 p.m. to 9:30 Friday and Saturday, June 29-30. This translates to 8:30 a.m. to 11:30 a.m. Sydney time, Saturday/Sunday; or 6:30 a.m. to 9:30 a.m. Hong Kong time.
Free to All Graduates
By the way, every seminar graduate will soon have free access, at all hours of the day, to a recorded version of the seminar as well as to the Q&A forums held in conjunction with each class. In addition, I am presently creating an advanced online tutorial built around some especially difficult charts that embody subtle principles of the Hidden Pivot Method. It will also be free to seminar grads and accessible around-the-clock.
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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2007, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Wednesday, 6 June 2007 | Digg This Article | Source: GoldSeek.com
