February 19, 2009

The Fryguy usually features many technical charts and today will be no exception. But first let’s listen and view some important and timely fundamental outlooks from our friends at Business Monitor International (London). Greg Newton and I conducted this much anticipated interview yesterday and it’s available in the following YouTube segments. Why all the segments? Because YouTube only allows 10 minute recordings and it also provides viewers the opportunity to view the topics they want.

Our discussion focuses on important hot spots of the world and the various economic risks investors will confront in global regions and countries.

Are gold and silver safe haven assets at this time?

Terry Alexander, Head of Country Risk, addresses this issue and much more with his macro view.

Are China and India economic growth rates contracting?

Yoel Sano, Asia Country Risk Analyst, discusses BMI’s view on this and Japan, Taiwan, Vietnam, Korea and much more in the next segment.

“In Europe the problem really is a capital shortage…” so says Justin Patrie, Emerging Europe Country Risk Analyst, assesses this and much more in the next segment.

How will weakness in Eastern European economies affect currencies like the Polish zloty? Will the current economic and currency crisis in Russia lead to unrest? Justin concludes his presentation with a discussion of this and other regional markets.

Meanwhile, back at the ranch, the stock market gave out a Bronx Cheer to current conditions (Crummy earnings, PPI higher, LEI lower and unemployment claims climbing) and trial balloons being floated about from government. Phooey!

And there’s options expiration beginning today with settlement tomorrow. That will give Da Boyz in the option pits some cheap thrills while crude oil should be fun with a rollover from March to April contracts also taking place.

Volume was about average while breadth continues on a negative path.

Just about all the markets internationally with charts above are discussed by our friends at BMI in the YouTube videos.

Tomorrow is options expiry and things should get interesting if you found today boring.

California finally got a budget deal but did you know that the entire mess is unnecessary? According to recent reports the state only has to lease readily available oil deposits to the big bad energy companies and they’d have plenty of revenues to pay for their bloated government. But no, the Goracle worshippers wouldn’t have any of it so let’s just tax the dickens out of the people instead.

The hero of the day is Rick Santelli who properly slams the BS coming out of congress and the administration. I think he’s the first qualified media personality to tell it straight. He also shows the anger many of us feel toward the nutty knee-jerk programs coming out of DC. Go get ‘em Rick!

I find it pretty annoying to read articles like this one posted in Bloomberg this morning where they mislead investors with a report that current PEs on the S&P 500 are only little above 10 meaning stocks are cheap on that basis. This is just wrong. I’ve exchanged emails with the reporter who is unable to provide a reliable source for this nonsense.

I also read that Sir (cough) Allen Stanford was primarily victimizing people south of the border. Imagine being a Venezuelan trying to escape financial currency controls and other actions by Chavez only to land in the arms of Stanford. What a bummer!

That’s it for me. Have a great weekend!

Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, PST, TLT, TBT, GLD, DBP, DGP, GDX, FXE, and DRR.

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