CrushTheStreet.com has been looking for opportunities in the markets to alert our members when we feel the best money making opportunities present themselves. The last few weeks have really resembled some 2008 moments with markets retracting. We are literally looking at a number of industries that are ridiculously undervalued. The entire TSX is down approximately 50%. There are companies out there today that have assets that are literally higher than there market cap. As bad as the times are for the economy and stocks, more millionaires will be made during the next decade than there will be for many years to come if history repeats itself as it did during the Great Depression.
The longer Europe puts up with the fantasy that a single currency is essential to its prosperity, the longer Italy, Spain, Greece and others will flirt with financial ruin and self-destruction. No bailout can save the Mediterranean economies from recurrent crises as long as they use the same currency as Germany and other northern states. The key element is trust. That was true when money was a piece of metal that you could bite or bounce. Now that money is just a piece of paper, it’s even truer. Today’s money is nothing but trust.
The U.S. government is excited to report that the deficit is slightly lower. Higher tax receipts and slightly lower government spending have narrowed the federal deficit for the first eight months of the fiscal year compared with a year earlier, Treasury Department figures showed Tuesday. Keep in mind that deficits keep track of how quickly the government is taking on more debt which still means that we’re in the hole and the next president will definitely see a $20 trillion debt figure fall under his belt.
The weakest sectors in the broad market were consumer cyclicals, capital goods and conglomerates. Financials, consumer non-cyclicals, and healthcare were moving higher.
U.S. stocks surged Tuesday as investors focused on the possibility of more monetary stimulus from the Federal Reserve amid disheartening economic data, looking past ongoing questions about the stability of the eurozone.
“Traders have been hyper-sensitive to any whiff of stimulus,” said Roger Volz, director of BGC Financial.
CrushTheStreet.com is definitely going to be looking for some opportunities to enter some of the markets at what we would consider low buying opportunities. Be on the lookout. Speaking of opportunities lets us take a look at oil!
Saudi Arabia and Iran are headed for a high-speed collision at the Thursday, June 14th, OPEC meeting in Vienna. OPEC is set to elect (or at least discuss electing) a new secretary-general and both Saudi Arabia and Iran are pushing their own candidates. The Saudis have proposed that OPEC raise its official production quotas in order to keep global oil prices at $100 a barrel or less (for benchmark Brent crude.) The Iranians, who have seen their oil exports drop due to sanctions imposed by the United States and the European Union, want OPEC to lower production so that prices climb and oil importers have fewer alternatives to buying Iranian oil. Global oil consumption typically rises in the third quarter of the year that marks the end of the refinery maintenance season. It’s unlikely that Saudi Arabia will cut production during that period no matter what OPEC decides. CrushTheStreet.com is not going to overlook the potential political demand and price fluctuation that can take place while major meetings are being held. The likelihood of 100 dollars per barrel being the floor for the near future is highly likely. Be prepared for our alerts that pertain to profiting from rising oil prices.