DIRECTIONS: Read the following and answer all the questions?
http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://www.grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
You may never have heard of Comphania Energetica de Minas Gerais (NYSE ADR: CIG).
It's not a difficult decision when you look at the global market and see that there aren't many trustworthy investments in the United States and Europe.
The non-stop news flow out of Europe has wrecked investor confidence. The market now is pricing in haircuts on European sovereign debt. And this process has driven down yields in Western developed nations, as investors fear government default.
You only have to look at what bond yields are in the United States and Germany, compared to other nations like Ireland or Greece, to see the real fear that exists in the world today. Two-year Greek debt is trading with a 35% yield -- not that long ago it was below 10%.
Still, that doesn't exactly make the dollar a safe-haven.
With so much acrimony over the debt ceiling, the U.S. is threatening a temporary default on its debt payments. The U.S. Federal Reserve meanwhile is keeping interest rates at artificially low levels in an effort to stimulate economic growth. That means the U.S. central bank is essentially punishing people who are retired and need to live off the cash flow from their savings and retirement funds.
Indeed, millions of retired people who rely on such fixed-income investments have been hurt by the actions taken by central banks - not just in the United States, but Japan and Europe, as well.
Of course, that's not to say all investors have been punished.
There are global investors - with an eye toward maintaining their cash flow from investments - that have figured out how to meet their cash flow needs and escape from the real negative rates offered in the developed markets.
Click here to continue reading...
----------------------------------------------------------------------------------------------------
Will $1 trillion be enough?
We're giving away trillion-dollar bills, to show people what runaway inflation can do to a country's currency. This authentic banknote from Zimbabwe will impress your friends - even if it won't buy a pack of gum in that poor, beleaguered country. Along with your trillion-dollar bill, we'll also send you an important free report on how gold and silver can help protect your savings. To receive your free report... and let us make you a Trillionaire... go here.
---------------------------------------------------------------------------------------------------- Microsoft, Intel and Cisco Follow Path Predicted in 'Leaders to Laggards' Series
David Zeiler, Associate Editor, Money Morning
Money Morning subscribers who read our Leaders to Laggards series on the flagging fortunes of Microsoft Corp. (Nasdaq: MSFT), Intel Corp. (Nasdaq: INTC) and Cisco Systems Inc. (Nasdaq: CSCO) weren't surprised by subsequent developments, since we told you exactly what to expect.
The Leaders to Laggards articles described how each company's failure to anticipate changes in their markets undermined their ability to grow revenue. Consequently, their stocks - which many investors rode to massive profits in the 1990s - have languished for the past decade.
Those tribulations have continued since the publication of our series. Microsoft and Cisco have struggled mightily, and as predicted, only Intel has managed to make headway.
Why Intel Is Still a 'Buy'
Intel surprised Wall Street with better-than-expected earnings last week - its standout divisions pointing the way to the future growth that for years had eluded the company.
Profits were up 2%, while revenue jumped 21% year-over-year. And gross margins edged up to 64% from 61% in the previous quarter.
Revenue from data centers, which provide the infrastructure for the cloud-computing trend that is now beginning to dominate mobile devices such as tablets and smartphones, was up 15.2% and accounted for nearly 20% of total sales.
Intel sees data centers as a major source of growth. The company expects sales to rise to $10 billion this year and to $20 billion within five years.
An even bigger surprise was the strength in the chipmaker's PC business, which accounted for 64% of Intel's revenue. Sales of the PC division rose 11% despite sluggish growth of about 2.5% in the overall PC market.
"We knew that there would be strength in the servers, but to see double-digit growth in their PC unit is great," Michael Shinnick, a money managerat Wasatch Advisors Inc.,told Bloomberg News.
Click here to continue reading...
Is This Washington's Worst Job Ever?
America may have finally had it with Washington - and the debt-ceiling debate might be the last straw.
A new USA Today/Gallup Poll found that 40% of Americans surveyed feel the job our elected leaders are doing with the federal budget is the worst they've ever seen in their lifetimes.
Turns out, many of our readers agree.
"It is sad that we can't trust a word being said in D.C. and the solutions being presented are not for the long-term survival of our country, but the politicians' own agenda." - Gary P.
We'd like to know more about what you think is going wrong in Washington. What do you think about the job U.S. President Barack Obama and Congress have done? What advice would you offer them if you had their attention? How worried are you about our future?
Click here to check the full list of questions we'd like you to chime in on. To share your thoughts on how Washington has been doing, send an e-mail to the Money Morning Mailbag at mailbag@moneymappress.com and put "debt-ceiling debate question" as the subject line. .
The $1 Billion Armageddon Trade Placed Against the United States
By Jack Barnes, Contributing Writer, Money Morning
Someone dropped a bomb on the bond market Thursday - a $1 billion Armageddon trade betting the United States will lose its AAA credit rating.
In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world.
The massive trade wasn't placed in bonds themselves; it was placed in the futures market.
The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03 and 3,100 Treasury bond futures executed at 125-01.
The value of the trade was about $850 million dollars. In simple terms, if that was a direct bond buy, no one would be talking about it.
However, with the use of futures, you have to have margin capacity behind the trade. That means with a single push of a button someone was willing to commit more than $1 billion of real capital to this trade with expectations of a 10-to-1 return ratio.
You may never have heard of Comphania Energetica de Minas Gerais (NYSE ADR: CIG).
http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://www.grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
You may never have heard of Comphania Energetica de Minas Gerais (NYSE ADR: CIG).
But this Brazil-based electric utilities company could be your key to unlocking profits - and income - at a time when much of the developed world is mired in stagflation.
So let's buy Comphania Energetica de Minas Gerais (**).It's not a difficult decision when you look at the global market and see that there aren't many trustworthy investments in the United States and Europe.
The non-stop news flow out of Europe has wrecked investor confidence. The market now is pricing in haircuts on European sovereign debt. And this process has driven down yields in Western developed nations, as investors fear government default.
You only have to look at what bond yields are in the United States and Germany, compared to other nations like Ireland or Greece, to see the real fear that exists in the world today. Two-year Greek debt is trading with a 35% yield -- not that long ago it was below 10%.
Still, that doesn't exactly make the dollar a safe-haven.
With so much acrimony over the debt ceiling, the U.S. is threatening a temporary default on its debt payments. The U.S. Federal Reserve meanwhile is keeping interest rates at artificially low levels in an effort to stimulate economic growth. That means the U.S. central bank is essentially punishing people who are retired and need to live off the cash flow from their savings and retirement funds.
Indeed, millions of retired people who rely on such fixed-income investments have been hurt by the actions taken by central banks - not just in the United States, but Japan and Europe, as well.
Of course, that's not to say all investors have been punished.
There are global investors - with an eye toward maintaining their cash flow from investments - that have figured out how to meet their cash flow needs and escape from the real negative rates offered in the developed markets.
Click here to continue reading...
----------------------------------------------------------------------------------------------------
Will $1 trillion be enough?
We're giving away trillion-dollar bills, to show people what runaway inflation can do to a country's currency. This authentic banknote from Zimbabwe will impress your friends - even if it won't buy a pack of gum in that poor, beleaguered country. Along with your trillion-dollar bill, we'll also send you an important free report on how gold and silver can help protect your savings. To receive your free report... and let us make you a Trillionaire... go here.
---------------------------------------------------------------------------------------------------- Microsoft, Intel and Cisco Follow Path Predicted in 'Leaders to Laggards' Series
David Zeiler, Associate Editor, Money Morning
Money Morning subscribers who read our Leaders to Laggards series on the flagging fortunes of Microsoft Corp. (Nasdaq: MSFT), Intel Corp. (Nasdaq: INTC) and Cisco Systems Inc. (Nasdaq: CSCO) weren't surprised by subsequent developments, since we told you exactly what to expect.
The Leaders to Laggards articles described how each company's failure to anticipate changes in their markets undermined their ability to grow revenue. Consequently, their stocks - which many investors rode to massive profits in the 1990s - have languished for the past decade.
Those tribulations have continued since the publication of our series. Microsoft and Cisco have struggled mightily, and as predicted, only Intel has managed to make headway.
Why Intel Is Still a 'Buy'
Intel surprised Wall Street with better-than-expected earnings last week - its standout divisions pointing the way to the future growth that for years had eluded the company.
Profits were up 2%, while revenue jumped 21% year-over-year. And gross margins edged up to 64% from 61% in the previous quarter.
Revenue from data centers, which provide the infrastructure for the cloud-computing trend that is now beginning to dominate mobile devices such as tablets and smartphones, was up 15.2% and accounted for nearly 20% of total sales.
Intel sees data centers as a major source of growth. The company expects sales to rise to $10 billion this year and to $20 billion within five years.
An even bigger surprise was the strength in the chipmaker's PC business, which accounted for 64% of Intel's revenue. Sales of the PC division rose 11% despite sluggish growth of about 2.5% in the overall PC market.
"We knew that there would be strength in the servers, but to see double-digit growth in their PC unit is great," Michael Shinnick, a money managerat Wasatch Advisors Inc.,told Bloomberg News.
Click here to continue reading...
Is This Washington's Worst Job Ever?
America may have finally had it with Washington - and the debt-ceiling debate might be the last straw.
A new USA Today/Gallup Poll found that 40% of Americans surveyed feel the job our elected leaders are doing with the federal budget is the worst they've ever seen in their lifetimes.
Turns out, many of our readers agree.
"It is sad that we can't trust a word being said in D.C. and the solutions being presented are not for the long-term survival of our country, but the politicians' own agenda." - Gary P.
We'd like to know more about what you think is going wrong in Washington. What do you think about the job U.S. President Barack Obama and Congress have done? What advice would you offer them if you had their attention? How worried are you about our future?
Click here to check the full list of questions we'd like you to chime in on. To share your thoughts on how Washington has been doing, send an e-mail to the Money Morning Mailbag at mailbag@moneymappress.com and put "debt-ceiling debate question" as the subject line. .
The $1 Billion Armageddon Trade Placed Against the United States
By Jack Barnes, Contributing Writer, Money Morning
Someone dropped a bomb on the bond market Thursday - a $1 billion Armageddon trade betting the United States will lose its AAA credit rating.
In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world.
The massive trade wasn't placed in bonds themselves; it was placed in the futures market.
The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03 and 3,100 Treasury bond futures executed at 125-01.
The value of the trade was about $850 million dollars. In simple terms, if that was a direct bond buy, no one would be talking about it.
However, with the use of futures, you have to have margin capacity behind the trade. That means with a single push of a button someone was willing to commit more than $1 billion of real capital to this trade with expectations of a 10-to-1 return ratio.
You only do this if you see an edge.
But this Brazil-based electric utilities company could be your key to unlocking profits - and income - at a time when much of the developed world is mired in stagflation?
A. TRUE
B. FALSE
B. FALSE
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