Bloodletting after record IPO Hype in 2018 of Chinese companies in the US.
There are about 300 Chinese companies that are traded in the US, either on exchanges or over the counter, either as American Depositary Receipts (ADRs) or as shares. And they’re just about all getting crushed, crushed, crushed.
Even Alibaba, the biggie – which has gotten off easy so far. Its ADRs [BABA] fell again on Friday, closing at $155, having plunged 18% in March so far and 26% from the 52-week high.
Weibo [WB], a social media giant, fell 3.8% on Friday to $43.66 and is now down 69% from its peak in January 2018.
Baidu [BIDU] has plunged 26% over the past six trading days alone to $114.47, and is down 58% from its 52-week high.
Andrew Horowitz of Horowitz and Company returns for an in-depth debate on the trade war between the U.S. and China. We discuss the potential impacts… and how to position your portfolio for the long haul. Andrew is an excellent technical analyst and trend follower. He gives us three stocks to short—one of which will surprise you [20:47].
I don’t have an educational segment this week… but I do rant about my recent family vacation-turned-nightmare. Whatever happened to people doing the right thing?
Retirement planning generally focuses on working from your 20s and retiring in your 60s or later. That gives you 40-odd years to squirrel away 10% to 15% of your annual income to accumulate a sufficient nest egg to last the rest of your life.
Yet the reality is that many folks are only a minor emergency, such as needing new tires for the car, away from bankruptcy. Most live paycheck to paycheck.
In fact, a study by Northwestern Mutual found that:
21% of Americans have nothing saving for the future
33% of Baby Boomers only have between $0-$25,000 in retirement savings
46% have done nothing to prepare for the possibility they could outlive savings
Building up a retirement savings that can last 20, 30, or 40 years is indeed a challenge.
But there’s a group that has redefined retirement planning by sacrificing today so they can have a better tomorrow…
Happy Friday everyone. Here’s our weekly roll-up of some of the most bizarre (and often disturbing) stories from around the world that we’re following:
Apparently it’s a crime to sit down in public
A dangerous criminal in the United Kingdom has been sentenced to 20 weeks in prison after an egregious crime spree.
This psychopath admitted to the heinous crime of SITTING in public THREE TIMES, without a valid excuse.
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The homeless man had already been given a “criminal behavior order” which banned him from sitting on the ground. But this social deviant just went ahead and did it anyway.
The Ministry of Justice says the average price of incarceration in Great Britain is around £32,500 per year.
So now instead of sitting on the ground in public, taxpayers will spend about £12,500 over 20 weeks for him to sit in a jail cell.
A US Congressman wants to ban Bitcoin for threatening the Federal Reserve
Gold prices have dipped below $1275.
Even the gold bugs are getting rattled.
On the other hand, profit bugs are on the constant lookout for opportunity in echo markets. This is the time when the market is rewarding strong hands and shaking out weak ones.
So if you’re coming from a position of strength (loaded with cash, paying close attention) then your time to strike and cash out will arrive.
I know I sound like a broken record in saying I want to be an alligator and wait for prices to come to me.
But that record has moved my net worth more than a few times over the last 15 years.
I am a long term bull on copper. I think it’s a fantastic place to be if you have a 3 to 5 year time frame. But that doesn’t mean that the price of copper won’t experience near-term downward pressure.
On a side note…
After 12 years of being on the board of Canada’s third-largest copper producer, I have decided to retire from the board.
Bitcoin has reported over 9% in growth on the day and is trading at $8,727 by press time. Having briefly dipped below $8,000 yesterday, May 26, the top coin saw a sharp rally kick in towards the evening. Bitcoin has seen considerable volatility this week, posting an intra-week low of around $7,550 on May 23 before surging to today’s new price peak.
Bitcoin last traded in the $8,700-800 range over a year ago, in the second week of May 2018.
On the week, Bitcoin has sealed a bullish 10.5% gain.
In his own technical analysis, trader Peter Brandt has cautioned that bitcoin’s surge ostensibly represents “the FOMO phase of the advance,” and that “once the majority of sold-out crypto bulls capitulate and chase this rally a more sizable correction will likely occur, stopping out the same bulls, who are chasing this advance.”
Largest altcoin by market cap ether (ETH) has also seen solid gains, growing 7.1% on the day to press time to trade at $267.50. Ether has seen strong correlation with bitcoin’s price surge, which kicked off during later trading hours yesterday. Today’s gains brings the altcoin back to its mid-month (May 18) earlier price peak, and in a longer view, to price levels last seen in early September 2018.
The top altcoin is now trading 7.22% up on the week.
By Nick Rokke, analyst, The Palm Beach Daily
Nick: Thanks for joining me today, T. The altcoin market is up 98% since January 30. But bitcoin is up 132% over that span. Why is the altcoin rally trailing?
Teeka: That’s a good question.
You see, bitcoin is just crushing the altcoin market. So investors fear their other coins will get left in the dust. Some folks have even asked me if they should sell all their altcoins and go all-in on bitcoin.
But the first thing everybody should do is just take a deep breath. What we’re seeing now is perfectly normal.
Every time crypto emerges from a brutal bear market, bitcoin rallies first. On average, it outperforms for about six months. But after that, the altcoin market catches up. And in many instances, it even surpasses bitcoin.
That’s why I counsel patience. This bull market is unfolding exactly as it should—with bitcoin leading the way and altcoins playing catch-up.
"The biggest thing that Americans fail to grasp is that most young people in Beijing make more money in a week than their parents did in a year in the fields," William Lindesay said to me over lunch last week.
William is from England – but he's spent much of the last 30 years in China. He traversed 1,500 miles of the Great Wall of China on a solo adventure mission back in 1987.
Today, he is a Great Wall historian and conservationist based in Beijing.
William is right that Americans fail to grasp a lot about China. Americans think of Chinese communism like North Korea – but a far better description for China would be "one-party capitalism."
Misperceptions like these are why I've gone to China so many times in recent years. And they're why I've taken as many subscribers with me as I could.
I just got back from my most recent China trip. And once again, the changes and advances blew me away.
By Jeff Clark, editor, Delta Report
Today, I’ll show you what will be the most profitable investing strategy of 2019.
You might be skeptical. You might wave it off as “reading tea leaves.”
But if you use this strategy, you’ll be able to double your money over and over while most other investors rip their hair out.
I’m talking about technical analysis.
Now, when you hear “technical analysis,” you might picture day traders drawing triangles on chart screens. The charts probably look more complex than anything you’ve seen before.
It might seem “scientific”… even a little bit intimidating.
But really, technical analysis is much more of an art than a science… That is, if you try to force it to conform to strict rules and formulas, it’s likely to be wrong almost every time.
Try thinking of it the way I do… A short-term chart of a stock (or index) is simply an emotional picture of the stock at a specific moment in time.
Stock charts tell me how traders/investors are responding emotionally at any given point in time. Human emotions are remarkably consistent. We tend to respond the same way, over and over again, to the same circumstances.
I talk about my successes on the podcast… but I also share my #fails. Not just for the sake of transparency, but for the sake of learning.
A listener wants to know one of my biggest winners and my biggest investing mistake. I break down one sector that offers huge opportunities for investors, if you know how to navigate it… and tell the story of the globetrotting boot-on-the-ground research mission that wound up teaching me an incredible lesson.
I also revisit an old portfolio holding—a “political whipping boy” and one heck of a frustrating recommendation. Warning: Epic rant ahead… plus a lesson you must never forget.
I have a major announcement regarding some changes coming to the Frankly Speaking podcast. If you enjoy the show, be sure to pay attention.
Summer is approaching. That means vacations for many families. AAA estimates that 100 million Americans are planning a getaway, more than half opting for a road trip.
But with gasoline prices inching higher, traveling could cost more than you may have expected. And for anyone on a tight budget, that could mean cutbacks on other parts of your trip.
As of mid-May, the national average price for a gallon of gasoline was $2.86… 3 cents higher than the same time last month.
Here in California we’ve been hit the hardest… passing a whopping $4. That’s up about 30 cents from a year ago.
For an estimate on how much gas will cost on your road trip, AAA has a handy calculatorthat’s based on where you’re traveling and the car you’re driving.
Now if you’re like me, you hate paying too much at the pump. So here are eight things you can do to make any upcoming road trip, and even your everyday commutes, a bit more affordable…
Earlier this month the World Gold Council published its quarterly report– and it shows that central banks and foreign governments from around the world are buying up gold at their fastest pace in six years.
This is pretty big news, and it says a LOT about the future of the dollar.
Remember, central banks and foreign governments hold literally TRILLIONS of dollars of reserves… and traditionally they do this by buying US government debt.
It sounds strange, but to big institutions, banks, etc., US government debt is equivalent to cash. They use it as a form of money.
More importantly, they hold US dollars because that’s the global standard: the US dollar has been the world’s primary international reserve currency for seventy five years.
So US debt is extremely liquid. In fact, the $22 trillion US debt market is the biggest and most liquid market in the world.
But foreign governments have started breaking with the tradition of buying treasuries.