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Investing to Wealth » Money Morning http://blog.macroaxis.com Macroaxis Blog Thu, 09 Feb 2012 15:51:24 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Tech Stocks to Watch: Apple Inc. (Nasdaq: AAPL), Research in Motion (Nasdaq: RIMM), Guidewire Software http://blog.macroaxis.com/2012/01/23/tech-stocks-to-watch-apple-inc-nasdaq-aapl-research-in-motion-nasdaq-rimm-guidewire-software/ http://blog.macroaxis.com/2012/01/23/tech-stocks-to-watch-apple-inc-nasdaq-aapl-research-in-motion-nasdaq-rimm-guidewire-software/#comments Mon, 23 Jan 2012 22:04:31 +0000 Kerri Shannon http://moneymorning.com/?p=62076 Research in Motion Ltd. (Nasdaq: RIMM), Apple Inc. (Nasdaq: AAPL), and a software company's IPO round out the biggest headline-making tech stocks this week - but not all are "Buys."

Major change for RIM: Research in Motion, the struggling Blackberry smartphone maker, has named a new Chief Executive Officer to replace co-CEOS Mike Lazaridis and Jim Balsillie - but could be too little, too late for RIM.

The company announced Monday morning that RIM-insider Thorsten Heins would take over the reins effective immediately. Lazaridis will stay on as vice chairman of the board; Balsillie will stay as a director.

Lazaridis and Balsille have received intensifying shareholder backlash for failing to effectively compete in the smartphone market, especially against Apple Inc.'s iPhone. RIM's stock fell 75% last year as Apple and Google Inc. (Nasdaq: GOOG) dominated the industry. RIM's share of the global smartphone market sank to 11% in the third quarter from 15% a year earlier.

Heins has been RIM's chief operating officer since 2008. He's said there's no need for a drastic change of plans to get RIM back on track - although industry consensus says otherwise. He's also not known for innovation - a reason the leadership replacement might not do any good for flailing RIM.

"Heins is a product execution guy, he's not a visionary," Ehud Gelblum, an analyst with Morgan Stanley (NYSE: MS), told Bloomberg News. "Heins has to give people a reason why they need a BlackBerry. It's going to be very difficult for him."

Research in Motion stock fell 8.58% Monday to close at $15.54.

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]]> http://blog.macroaxis.com/2012/01/23/tech-stocks-to-watch-apple-inc-nasdaq-aapl-research-in-motion-nasdaq-rimm-guidewire-software/feed/ 0 The Ultimate Fate of the Keystone Pipeline http://blog.macroaxis.com/2012/01/23/the-ultimate-fate-of-the-keystone-pipeline/ http://blog.macroaxis.com/2012/01/23/the-ultimate-fate-of-the-keystone-pipeline/#comments Mon, 23 Jan 2012 10:00:57 +0000 Dr. Kent Moors http://moneymorning.com/?p=61981
This has introduced another political firestorm into an already uncertain market.

If there is one subject that is likely to stimulate more angst over economic recovery prospects, it is the availability of energy.

Energy is central in everything that happens in the U.S. market.

And Keystone is designed to transport up to 700,000 barrels of oil a day from Alberta to refineries on the U.S. Gulf coast. It represents a new North American-centered initiative to lessen reliance on Middle Eastern imports and would create thousands of new jobs.

It also would create new opportunities for investors.

But the pipeline has had its detractors from the beginning.

Environmentalist Concerns Reign

Environmental concerns have been raised over the greenhouse gas emissions and passage of the pipeline through ecologically sensitive areas.

It is also opposed by those who view the current condition of virtually guaranteed crude oil price increases as an opportunity to invest in alternative and renewable energy technologies.

Some of the environmental issues can be resolved by simply moving the pipeline route.

But others are more difficult to counter.

The crude involved is very heavy oil, primarily from the Athabasca oil sands and similar deposits in Alberta and Saskatchewan. That raw material requires upgrading to synthetic oil and that is far more environmentally invasive than processing lightweight crude.

Therefore, proponents of the pipeline can't resolve environmental concerns simply by changing the route.

And then there is the added problem of a current U.S. statute, namely, §526 of the Energy Independence and Security Act (EISA) of 2007. This prohibits federal agencies from procuring (which includes importing) synthetic fuel unless its life-cycle greenhouse gas emissions are less than those for conventional petroleum sources.

The "life-cycle" considers the GHG emissions throughout the extraction and processing of the oil - that is, from the time it is taken out of the ground, through its transport and upgrading, to its delivery to a refinery (and its emissions there).

When originally passed, this section was designed to benefit domestic American producers over the import of heavier and higher sulfur content foreign oil. It was never intended to create a problem with our neighbors to the north.

Unfortunately, we sure have a problem now.

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]]> http://blog.macroaxis.com/2012/01/23/the-ultimate-fate-of-the-keystone-pipeline/feed/ 0 A Hundred Billion Reasons to Invest in Robotics Technology http://blog.macroaxis.com/2012/01/23/a-hundred-billion-reasons-to-invest-in-robotics-technology/ http://blog.macroaxis.com/2012/01/23/a-hundred-billion-reasons-to-invest-in-robotics-technology/#comments Mon, 23 Jan 2012 10:00:48 +0000 Michael Robinson http://moneymorning.com/?p=61973
According to the journal Nature, the Milky Way Galaxy alone contains at least 100 billion planets.

Now forgive me if I sound excited...but that is huge.

After all, just 20 years ago, astronomers still widel y believed that our own tiny solar system contained allof the major planets.

So when I talk about how we are entering an Era of Radical Change, this is exactly what I'm talking about.

It's not about tiny incremental changes but gigantic shifts in thought.

And here is something else to ponder...

With all of this new data, scientists now believe the universe may contain more than 150 billion galaxies. The math is enough to make your head spin.

How Nuclear-Powered Robots Are Winning the New Space Race

All this brings to mind one key point: The odds that we are alone in the universe grow smaller and smaller every day.

That puts us on the cusp of a New Space Race - one that will undoubtedly favor robots.

That's why I think NASA's new Spidernaut is such an important piece of technology. It's an eight-legged robot that looks like it crawled right out of a sci-fi movie.

NASA plans to use these robots to help construct a new generation of space-science platforms that are so large and fragile they'll have to be built in orbit.

As it turns out, spiders are really nimble creatures. NASA designed the prototype arachnid robot to have the grace and weight distribution of real spiders.

If the technology works as planned, these giant spider robots would crawl across a "web" of space tethers so as not to damage delicate equipment.

Now how cool is that?...

It all goes to show you that despite the soft global economy and budget cuts, we've actually never had more interest in space exploration.

But this time it's not just the United States and Russia. Indeed, China, India and Japan are also funding major programs.

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]]> http://blog.macroaxis.com/2012/01/23/a-hundred-billion-reasons-to-invest-in-robotics-technology/feed/ 0 The Best "Buy" of the New Dividend Aristocrats http://blog.macroaxis.com/2012/01/23/the-best-buy-of-the-new-dividend-aristocrats/ http://blog.macroaxis.com/2012/01/23/the-best-buy-of-the-new-dividend-aristocrats/#comments Mon, 23 Jan 2012 10:00:34 +0000 Kerri Shannon http://moneymorning.com/?p=61985
Compiled and tracked by Standard & Poor's, Dividend Aristocrats are companies that have consistently increased their dividend payouts for 25 consecutive years.

Currently, there are 51 of them, including the 10 new Dividend Aristocrats added this year.

That offers yield conscious investors a choice of 51 solid companies with a reliable track record of providing guaranteed payments-even during volatile markets and down economic cycles.

"The problem with going for capital growth is that you very often don't get it, and then you've got nothing - the investment just sits there," said Money Morning Global Investing Specialist Martin Hutchinson.

"Dividends" Martin says, "are easy."

Not only are they easy, they're also increasing.

Dividends on the Rise in 2012

Standard & Poor's reported that dividend increases for all their indices in 2011 almost doubled the dividends paid in 2010.

Total dividend increases hit $50.2 billion last year - an 89.2% rise over 2010's dividend increases of $26.5 billion - and are expected to climb even higher in 2012.

That's welcome news for investors searching for steady income sources in a zero-growth environment.

Few other assets - especially bonds - are expected to deliver an increased payout this year.

"With 10-year Treasury bond yields below 2%, bonds just don't give you the income they used to," said Hutchinson. "Dividend stocks can give you a better yield than bonds, and if you pick the right ones, will provide both protection against inflation and a chance to share in global economic growth. While they'll fluctuate with the market, dividend stocks of attractive companies are thus really a three-fer."

Dividend Aristocrats even go a step further than ordinary dividend stocks because of their lengthy payout history.

But before you dive into investing in these Dividend Aristocrats, the list needs some scrutiny.

Even though all 51 Aristocrats are known for increasing dividends, not all of them make for great investments in today's market.

"All you have to do is figure out which companies are run by sharpies - and are paying dividends out of capital - and which companies have genuinely solid business models that aren't going away," said Hutchinson.

In fact, there's only one of the freshly-minted Aristocrats that you should add to your portfolio right now.

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]]> http://blog.macroaxis.com/2012/01/23/the-best-buy-of-the-new-dividend-aristocrats/feed/ 0 The Verdict Is In: End Congressional Perks http://blog.macroaxis.com/2012/01/20/the-verdict-is-in-end-congressional-perks/ http://blog.macroaxis.com/2012/01/20/the-verdict-is-in-end-congressional-perks/#comments Fri, 20 Jan 2012 16:55:40 +0000 Jason Simpkins http://moneymorning.com/?p=61952
With so many Americans struggling to just find a job, isn't time we put an end to Congressional perks like these?

That's the question we put to you just a few short weeks ago. And we're happy to say the response has been overwhelming.

We've been inundated with comments and responses. Here's just a small sampling: To continue reading, please click here...

]]> http://blog.macroaxis.com/2012/01/20/the-verdict-is-in-end-congressional-perks/feed/ 0 The Verdict Is In: End Congressional Perks http://blog.macroaxis.com/2012/01/20/the-verdict-is-in-end-congressional-perks-2/ http://blog.macroaxis.com/2012/01/20/the-verdict-is-in-end-congressional-perks-2/#comments Fri, 20 Jan 2012 16:55:40 +0000 Jason Simpkins http://moneymorning.com/?p=61952
With so many Americans struggling to just find a job, isn't time we put an end to Congressional perks like these?

That's the question we put to you just a few short weeks ago. And we're happy to say the response has been overwhelming.

We've been inundated with comments and responses. Here's just a small sampling: To continue reading, please click here...

]]> http://blog.macroaxis.com/2012/01/20/the-verdict-is-in-end-congressional-perks-2/feed/ 0 2012 U.S. Dollar Outlook: How to Play A Short-Term Rally http://blog.macroaxis.com/2012/01/20/2012-u-s-dollar-outlook-how-to-play-a-short-term-rally-2/ http://blog.macroaxis.com/2012/01/20/2012-u-s-dollar-outlook-how-to-play-a-short-term-rally-2/#comments Fri, 20 Jan 2012 15:28:00 +0000 Larry D. Spears http://moneymorning.com/?p=61947 http://blog.macroaxis.com/2012/01/20/2012-u-s-dollar-outlook-how-to-play-a-short-term-rally-2/feed/ 0 Crisis in the Eurozone: The Reality of the European Downgrades http://blog.macroaxis.com/2012/01/20/crisis-in-the-eurozone-the-reality-of-the-european-downgrades/ http://blog.macroaxis.com/2012/01/20/crisis-in-the-eurozone-the-reality-of-the-european-downgrades/#comments Fri, 20 Jan 2012 10:00:31 +0000 Jack Barnes http://moneymorning.com/?p=61929
After the close, Standard & Poor's downgraded nine of the sovereign states in the European Union (EU).

That included dropping Austria and France to AA+ status from their formerly lofty AAA rating.

While the decision was expected, and will most likely be followed by additional downgrades from the other rating agencies such as Moody's Corp. (NYSE: MCO) and Fitch Ratings Inc., it's the knock-on effects that will have larger implications for investors around the world.

In the Wake of the European Downgrades

The first and most obvious effect was the downgrade of the European Financial Stability Facility (EFSF) that followed on Monday. In the wake of Friday's bad news, the EFSF was also dropped to a AA+ rating.

According to the S&P:

"We consider that credit enhancements that would offset what we view as the now-reduced creditworthiness of the EFSF's guarantors and securities backing the EFSF's issues are currently not in place. We have therefore lowered to 'AA+' the issuer credit rating of the EFSF, as well as the issue ratings on its long-term debt securities."

The S&P also warned more EFSF downgrades would follow if the ratings of other individual states dropped in the future.

In a warning the EFSF could fall below AA+ the S&P said:

"Conversely, if we were to conclude that sufficient offsetting credit enhancements are, in our opinion, not likely to be forthcoming, we would likely change the outlook to negative to mirror the negative outlooks of France and Austria. Under those circumstances we would expect to lower the ratings on the EFSF if we lowered the long-term sovereign credit ratings on the EFSF's 'AAA' or 'AA+' rated members to below 'AA+'."

So where do we go from here?

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]]> http://blog.macroaxis.com/2012/01/20/crisis-in-the-eurozone-the-reality-of-the-european-downgrades/feed/ 0 What the Next Decade Holds for Commodities http://blog.macroaxis.com/2012/01/20/what-the-next-decade-holds-for-commodities/ http://blog.macroaxis.com/2012/01/20/what-the-next-decade-holds-for-commodities/#comments Fri, 20 Jan 2012 10:00:17 +0000 Guest Editorial http://moneymorning.com/?p=61910
In fact, you would find that all 14 commodities are in positive territory if you annualized the returns since 2002.

The best performer was silver with an impressive 20% annualized return.

Surprisingly, that was higher 19% annual return on gold.

Notably, all commodities except natural gas outperformed the S&P 500 Index 10-year annualized return of just 2.92%.

However, last year did not seem reflective of the decade-long clamor for commodities.

In 2011, only four commodities we track increased: gold (10%), oil (8%), coal (nearly 6%), and corn (nearly 3%).

The remaining commodities listed on our popular Periodic Table of Commodity Returns fell, with losses ranging from nearly 10% for silver to 32% for natural gas.

I think this chart is a "must-have" for investors and advisors because you can visually see how commodities have fluctuated from year to year...

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]]> http://blog.macroaxis.com/2012/01/20/what-the-next-decade-holds-for-commodities/feed/ 0 QE3, $2,200 Gold, and the Trillion Dollar Bazooka http://blog.macroaxis.com/2012/01/20/qe3-2200-gold-and-the-trillion-dollar-bazooka/ http://blog.macroaxis.com/2012/01/20/qe3-2200-gold-and-the-trillion-dollar-bazooka/#comments Fri, 20 Jan 2012 10:00:10 +0000 Peter Krauth http://moneymorning.com/?p=61935
Europe is on the financial brink, Iran is a powder keg, and precious metals like gold have retreated.

It's also a time when there is no shortage of financial forecasts.

Even though these kinds of predictions about the future can be tough to make, I'll admit it's kind of fun to look forward and see what the future may hold.

Like in December 2010, when I said I expected gold to reach $1,900/oz in 2011. Some people thought that I was crazy. At the time, gold was trading for just $1,390/oz.

But just nine months later, that turned out to be a pretty good call as gold hit a new high of $1,923/oz. before eventually pulling back.

Better yet, in January 2010, I even said gold would eventually top $5,000. Of course, most people thought that call was preposterous.

Now, even Standard Chartered bank's analysts expect gold to climb to $5,000.

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