Let me preface this piece by saying I stole this specific instrument from Jeffrey Saut, who mentioned it in his weekly missive. Long time readers will know I've mentioned this market has become all about asset allocation, and sectors - I noticed this late in 2007 when we were hiding out in commodities while many other sectors were imploding but other than a few periods when "everything" is going down (or up) it appears a lot of individual stock selection is going out the window and "sectors" are more important. Some themes are broad like "China" or "commodities" (which in many ways are now the same theme), where others are narrower such as "casual dining restaurants". I don't know if its the dominance of program trading or the growing popularity of ETFs but this seems to be a secular change in the[More...]

Last week marked the busiest week for dividend increases in 2009 as several blue chip companies such as IBM, Costco and Exxon Mobil raised their payouts. It is always bullish to see companies which have always rewarded shareholders with raised payouts continue operating in a shareholder friendly pattern of behavior. ExxonMobil (XOM), which engages in the exploration, production, transportation, and sale of crude oil and[More...]

TXCO Resources (TXCO) looks like it may become the first casualty of the credit crunch in the exploration and production sector.

The company just received an acceleration notice from its lender demanding full repayment of the $150 million owed under the agreement, an amount the company does not have.

It's a shame since the company has some interesting properties in the Maverick Basin in Texas, and is also exposed to the Eagle Ford Shale.

I uploaded a few pictures of drink coasters I received from them at an investor meeting some time ago.

Global equity markets are volatile and chaotic. Seemingly distressed paper is only getting more distressed by the day. Sovereigns will be forced to issue trillions of debt over the next 12-18 months to pay for aggressive stimulus programs. US Treasury yields are at historically low levels, notwithstanding massive deficit spending as far as the eye can see. Western Europe is crumbling, with special mention to the UK. Japan is on life-support. So with all this uncertainty and the deeply troubled US Government trading as if everything is rosy, e.g., why aren't both the USD and Treasuries getting crushed in the face of persistent trillion-dollar deficits, the question is: where's the trade? A few observations: It appears that the "flight to quality" trade in the credit markets will continue for the foreseeable future, keeping Treasury yields low and the dollar[More...]

You are probably familiar with my colleague, Dr. Russell McDougal. He has been writing for Investor’s Daily Edge for more than two years, helping to alert our readers to the ongoing criminal activity of the “Axis of Weasels” in Washington. He has been sounding the alarm for years about the financial and monetary crisis that is now upon us. And for even longer, he has shouted from the rooftops about the ability of gold and silver to provide protection and profits in times like these. But you might not know how he came to be involved with Investor’s Daily Edge and what his background and experience are. I want to share that with you today. And there is a very good reason why you should listen. I firmly believe he can lead you to 200% to 300% gains this year… and thousands of percent upside in the years ahead. That’s a big promise in a very[More...]