By Astrology Traders

We are fast approaching the peak on April 22nd of a very rare, once in a lifetime, grand cardinal square in the heavens between Pluto, Uranus, Jupiter, and Mars.  The aspect is extremely afflicted with Uranus and Jupiter as the lesser malefic’s, holding the promise of unconventional financial engineering amidst an otherwise brutal and inexorably difficult warlike pattern between Pluto and Mars.  The grand square aspect in the heavens is a punctuation and dramatic warning to consequences of a miscalculation (political gamble), that at this point has likely already happened and cannot be turned back.  No nation, including the United States, will get through this cycle unscathed.  The emerging markets will likely take a serious downturn and ‘depression’ will become a common theme.

Whoops, They Did It Again

What happened?  Well, we all know what happened in 2008 with the collapse of Lehman Brothers, the resulting TARP programs, designed supposedly to fix everything and make the economy whole again.  But, whoops they did it again!, MF Global collapsed unexpectedly in October 2011 throwing a curve ball to the Federal Reserve.  Suddenly Bernanke embarked on extraordinary QE to prop the markets and keep the gig going a bit longer.  Perhaps the only salvation for the Federal Reserve at this point is the destruction of the dollar as reserve currency, and the reorganization under a new form of digital money, or so they think.

Something unexpected happened between January 31st and February 5th 2014, the algorithm’s got broken in the midst of currency volatility in the Forex markets.  I am suspicious of a very secret move in January to unplug the dollar as reserve currency.  In an interview with India’s central banker on Bloomberg TV February 5th, Raghuram Rajan stated “international monetary cooperation has broken down”.  At the same time, the financial news media showed signs of being thrown off balance,  commentary became unorganized while comparisons to 1929 were floated.  This, after the Fed announced in December the leading economic index increased 0.8 percent in November, underscoring the Fed’s view of an improving U.S. economy?

The Karma of Unplugging The Dollar

A perhaps foreseeable fate for America is the position of the natal Sun at 13 degrees Cancer, caught now in the crosshairs of this very debilitating grand square.  The Sun represents the currency in a nations chart, and while receiving an opposition from transiting Pluto, the outcome will have very long term consequences.  Pluto oppositions are like playing high stakes tug of war with a rubber band.  Pull too hard and the rubber band snaps, both sides get smacked and there is no winner.  In my view the rubber band snapped the first week of February. Emerging markets became unstable along with stocks and currencies.  (more…)

(And How They Can Benefit Your Portfolio)

Trading construction stocks can significantly diversify your portfolio. Yes, they can be risky especially at times when the interest rate goes up or when recession hits and values of homes spiral down. But there are a lot of gems among construction companies. They can deliver great and stable returns and offer an alternative way to protect your portfolio. So then, the most important issue here is how to find those gems. Here are some of the tips that can guide you in your search that I’ve put together with CBOnline.

One way is to pick the ones that operate in the hottest, the most popular commercial areas. Such zones will have a very high occupancy rate (over 85 percent and more) and the price for rental will be experiencing a steady appreciation over the last few years. Companies that have ongoing construction projects in those locations are well protected and their return and survival is practically insured. So, for example any company with the exposure to London Bridge area, such as Mace Group, would be a candidate on that list. The company’s most recent revenue is well over £1,000 million with an income of over £ 28 million.

Also interesting are those construction companies that have international exposure. They are not necessarily limited to the prosperity of one single country. And their future is not tied to a success of a single project. Therefore, their revenue is well diversified which in turn calculates to a low risk/high return investment. Interserve plc (trades on London Stock Exchange under the symbol: IRV) with the market cap of over £2 billion falls into that group. It operates in over 20 countries and has a worldwide workforce of over fifty thousand people. The company has a very long tradition as it was founded back in 1884. The most current revenue has passed £2.3 billion mark which brought in net income of over £55 million .

Furthermore, consider purchasing stocks of those construction companies who are also involved in providing profitable and ongoing services. The one that here pops on the list is certainly Carillion plc (LSE symbol: CLLN). The company offers facilities management, energy and utility services, as well as rail services and road maintenance. Additionally, the company has a very strong businesses consultancy unit. Carillion’s strength was recently manifested by their acquisition of John Laing Integrated Services Ltd in October of 2013 which should help them to drive further growth.

These are but a few ideas you can start with as you search for your next star stock performer. The bottom line is that you want to pick the strongest, the healthiest and the fastest growing ones. They are the ones that are the most likely to survive in the times of trouble and appreciate in value when the tide turns and the economy expands.

14
Apr

By Chris Haley

This year and early next is going to be a relatively flat time for equities. My Target for the S+P is 1950 at year end, but we’ll be going up and down in between. This April correction will take us down to near 1700, but in May I guess we’ll be near 1900, then back down June, up in July, Down In Aug/Sept then Oct to year end a rally to take us to 1950. Early next year we’ll rally over 2,000, only for a fed funds increase pull back to 1850 by the summer and so we’ll have gone nowhere for 18 months, but it’s a monthly traders dream! Expect after Summer 2015 that the US economy and earnings will pick up for a big rally 2015-2017 to S+P 3,000.

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Regards.

Chris Haley is a  full time investor with thirty years experience and used to making around 50% a year in equity capital returns, having worked previously for financial investment firms JP Morgan’s Save and Proper in the UK and Royal Insurance.

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