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What the market’s record stock buybacks really mean for investors

From Sean Goldsmith in The SA Digest:

Corporations are buying back stock at the fastest clip since the financial crisis…

The Wall Street Journal, citing data from market-research company Birinyi Associates, noted that “corporations bought back $338.3 billion of stock in the first half of the year, the most for any six-month period since 2007.”

Some stats from the article:

The growth in buybacks comes as overall stock-market volume has slumped, helping magnify the impact of repurchases. In mid-August, about 25% of nonelectronic trades executed at Goldman Sachs Group Inc., excluding the small, automated, rapid-fire trades that have come to dominate the market, involved companies buying back shares. That is more than twice the long-run trend, according to a person familiar with the matter

Companies with the largest buyback programs by dollar value have outperformed the broader market by 20% since 2008, according to an analysis by Barclays PLC

According to Barclays, companies in the second quarter spent 31% of their cash flow on buybacks, the most since 2008 and up from 14% at the end of 2009. At the end of the second quarter, nonfinancial companies in the SP 500 index held $1.35 trillion of cash, down from a record of $1.41 trillion at the end of last year, according to FactSet.”

When a company buys back shares, it reduces the number of shares outstanding… That increases the earnings attributable to each share. In other words, it’s a way to goose earnings per share (EPS) without fundamental

Article source: http://thecrux.com/what-record-stock-buybacks-really-mean/

After 18 long years, this major market could finally be headed much higher

From Chris Kimble at Kimble Charting Solutions:

CLICK ON CHART TO ENLARGE

Buy Hold investing has worked pretty well when it comes to many stock indexes around the world. One place where this strategy has been disappointing is the Nikkei 225 over the past couple of decades. If one happened to buy the Nikkei in 1990, they would still be down over 50%, twenty-four years later.

The above chart highlights a resistance line that has been heavy for the Nikkei for almost two decades. The Nikkei is now making an attempt to break free from this resistance line.

At the same time the Yen is working on breaking a support line that has been in place for almost 30 years.

Could a breakout by the Nikkei help push the SP 500 and major European markets even higher?

Buyer beware: One of the popular ETF’s for Japan is EWJ. Check out its resistance line, because it looks a good deal different.

If you like the idea of buying breakouts or shorting breakdowns, these are markets to keep on your radar screen.

Article source: http://thecrux.com/this-major-market-could-be-working-on-its-first-big-breakout-in-18-years/

Today’s entertainment: What it would be like if the iPhone 6 were actually better

There’s no denying Apple’s iPhone was a game-changer…

But if you’re like many longtime users, there are probably more than a couple features you wish Apple would add, update, or fix.

This hilarious video imagines what Apple’s iPhone ads would look like if they actually made these improvements.

If you’ve ever owned an iPhone, we dare you not to laugh…

(Note: Video contains explicit language)


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Frank Curzio cracks the marijuana code. See how to capitalize on America’s next big industry… including the #1 stock Frank says you should buy right now. Click here to learn more.

A low-risk double in resources?

Think gold is headed higher? How about uranium? Platinum? Coal? SA editors have made the case for each of them. And this ONE investment profits from them all. Click here to see.

Article source: http://thecrux.com/todays-entertainment-if-apples-new-iphone-6-was-actually-better/

A jaw-dropping fact you haven’t heard about “global warming”

From Kit Daniels at Infowars.com:

Later this month, activists are planning a march in New York City for “global warming awareness,” even though the northern U.S. is reeling from record cold temperatures. 

Called the “largest climate march in history” by organizers, the “People’s Climate March” will occur on Sept. 21st, a few days before the United Nations will attempt to draft a “global warming” treaty on the same level as the controversial Kyoto Protocol.

“The Secretary-General has asked leaders to announce significant and substantial initiatives to help move the world toward a path that will limit global warming,” states a U.N. press release.

Yet, in contrast to that rhetoric, ice cold temperatures are shattering records across the U.S. and Antarctica’s sea ice is expanding at a record pace.

“Chicago seemingly switched from summer to fall overnight,” NBC Chicago reported yesterday. “Temperatures plunged from a high near 80 degrees on Wednesday to the mid-50s on Thursday, and by mid-day the area set a record low for high temps.”

“On this date in 1940, the coolest high temp was 61 degrees; on Thursday, O’Hare Airport recorded a high of 56 degrees.”

Snow blanketed Denver, Colorado, yesterday and so far this summer, seven states have experienced snow on the ground.

Additionally, the National Weather Service issued a freeze warning for all of western Montana and portions of central Idaho for the rest of this

Article source: http://thecrux.com/you-cant-make-this-up-global-warming-activists-plan-largest-march-in-history-despite-record-cold-temperatures/

Silver’s ETF Demand Outpaces Gold by Most Ever: Chart of the Day

Investors in exchange-traded funds
backed by silver have stayed loyal to the metal longer than
those who bought gold.

The CHART OF THE DAY shows shares outstanding for the
biggest U.S. silver ETF surpassing those for the nation’s
largest gold fund by the most since 2006, when the iShares
Silver Trust was created. Retail buyers are sticking with silver
even as prices fell 4.4 percent this year, the most of any
precious metal. Gold’s 2 percent gain wasn’t enough to halt
declines in selling, and assets in the SPDR Gold Trust are set
for a second annual loss.

“The perception is that silver will do well, and should
outperform gold as the economic recovery strengthens,” Tom
Kendall, the head of commodities research at Credit Suisse in
London, said in a telephone interview. “Belief in silver’s dual
properties, as a financial asset and also as an industrial
metal, appears to remain strong.”

While money managers hold the least bullish bets on silver
since they were net short on June 10, demand for the metal from
solar panel makers is seen rising to a record this year by CPM
Group, a New York-based researcher. Demand from jewelry and
silverware makers will climb 4.3 percent, according to CPM.

U.S. economic growth will accelerate to 3 percent in 2015,
from 2.1 percent forecast for this year, according to a
Bloomberg survey of 89 analysts. Signs of stronger growth helped
push the Standard Poor’s 500 Index of shares to a record
yesterday, while the

Article source: http://www.bloomberg.com/news/2014-09-18/silver-s-etf-demand-outpaces-gold-by-most-ever-chart-of-the-day.html

Gold, Silver Fall on Fed Policy Outlook

NEW YORK—Gold fell Thursday to an eight-month low, while silver sank to a four-year low, as investors digested the Federal Reserve’s plans for tighter monetary policy.

Gold for December delivery, the most active contract, fell $9, or 0.7%, to settle at $1,226.90 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the…

Article source: http://online.wsj.com/articles/gold-extends-losses-as-investors-ponder-fed-plans-1411046938

If you’ve enjoyed lower gas prices, you won’t like this chart

From Tom McClellan’s Chart in Focus:

The terrorist group ISIS (AKA the un-Islamic non-state “Army of Satan”) is tying up major portions of oil-rich Mesopotamia. Russian troops are occupying portions of Ukraine, which is a key portal for oil and natural gas to transit to western Europe. And the oil-rich portions of Africa have been subjected to a viral outbreak that is causing the rich and educated in that region to flee for their lives, leaving the others to fend for themselves.

So of course this geopolitical condition means that oil and gasoline prices should plummet, naturally.

In the 3 months since a peak at $3.13/gallon in June 2014, the RBOB futures contract has plummeted 18%. These are futures market prices, not including taxes and dealer mark up. Your mileage may vary.

This is hardly the behavior of prices that one might expect in the middle of a geopolitical crisis, not to mention several arriving simultaneously. But what we think that the market should do is not necessarily what the market actually does.

The drop in oil and gasoline prices has gotten commodities followers to believe that the real world rules don’t matter, that prices are headed to zero, and that we should all buy Winnebagos. But commercial traders are saying otherwise, which is the message of this week’s chart.

Commercial traders of RBOB gasoline futures have been continuously net short since 2005, So the game consists of evaluating

Article source: http://thecrux.com/we-could-be-close-to-a-big-bottom-in-this-commodity-but-its-probably-the-last-one-anyone-would-hope-for/

Today’s entertainment: What if Apple’s new iPhone 6 were actually better?

There’s no denying Apple’s iPhone was a game-changer…

But if you’re like many longtime users, there are probably more than a couple features you wish Apple would add, update, or fix.

This hilarious video imagines what Apple’s iPhone ads would look like if they actually made these improvements.

If you’ve ever owned an iPhone, we dare you not to laugh…

(Note: Video contains explicit language)


Recommended Links

Cracking the “pot code”

Frank Curzio cracks the marijuana code. See how to capitalize on America’s next big industry… including the #1 stock Frank says you should buy right now. Click here to learn more.

A low-risk double in resources?

Think gold is headed higher? How about uranium? Platinum? Coal? SA editors have made the case for each of them. And this ONE investment profits from them all. Click here to see.

Article source: http://thecrux.com/todays-entertainment-if-apples-new-iphone-6-was-actually-better/

A jaw-dropping fact you haven’t heard about "global warming"

From Kit Daniels at Infowars.com:

Later this month, activists are planning a march in New York City for “global warming awareness,” even though the northern U.S. is reeling from record cold temperatures. 

Called the “largest climate march in history” by organizers, the “People’s Climate March” will occur on Sept. 21st, a few days before the United Nations will attempt to draft a “global warming” treaty on the same level as the controversial Kyoto Protocol.

“The Secretary-General has asked leaders to announce significant and substantial initiatives to help move the world toward a path that will limit global warming,” states a U.N. press release.

Yet, in contrast to that rhetoric, ice cold temperatures are shattering records across the U.S. and Antarctica’s sea ice is expanding at a record pace.

“Chicago seemingly switched from summer to fall overnight,” NBC Chicago reported yesterday. “Temperatures plunged from a high near 80 degrees on Wednesday to the mid-50s on Thursday, and by mid-day the area set a record low for high temps.”

“On this date in 1940, the coolest high temp was 61 degrees; on Thursday, O’Hare Airport recorded a high of 56 degrees.”

Snow blanketed Denver, Colorado, yesterday and so far this summer, seven states have experienced snow on the ground.

Additionally, the National Weather Service issued a freeze warning for all of western Montana and portions of central Idaho for the rest of this

Article source: http://thecrux.com/you-cant-make-this-up-global-warming-activists-plan-largest-march-in-history-despite-record-cold-temperatures/

Five time management tricks from the world’s most successful people

From Eric Barker at Barking Up The Wrong Tree:

“Where does the time go?” I say it. I’m sure you say it a lot.

We seek work-life balance but it seems there’s never enough time to get it all done.

And yet we all know there are people who accomplish a lot more than we do in a day — and they don’t have magic powers.

How do the most successful people manage their time?

Laura Vanderkam talked to a number of those people (including productivity expert David Allen and the former CEO of Pepsi) and found out their secrets.

She’s written about what she learned in a series of books:

I gave Laura a call and we discussed what she learned from successful people about managing time and getting things done.

Here’s how you can get tons of stuff accomplished during the week, feel less stressed, and even have more fun on the weekend.

1) Do A Time Log

Interviewing so many successful people, what did she hear some version of over and over? They all seem obsessed with one question:

What else could I do with that hour?

They plan their time, track their time, and are always thinking about the Article source: http://thecrux.com/how-the-worlds-most-successful-people-manage-their-time/