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‘Actioni contrariam semper et æqualem esse reactionem: sive corporum duorum actiones in se mutuo semper esse æquales et in partes contrarias dirigi.’ – Law Three, Principia Mathematica Philosophiae Naturalis, Sir Isaac Newton

Or to non-Latin speakers (including your editor)…

‘To every action there is always opposed an equal reaction: or the actions of two bodies upon each other are always equal, and in the parts directed to contrary.’

Apparently, this is a new idea to the guys and gals at the International Monetary Fund (IMF). But thanks to ‘three decades’ of research, the boffins at the IMF have finally found out what Sir Isaac Newton knew 325 years ago.
That is, every action creates an opposite and equal reaction.

It’s Newton’s Third Law.

OK. Newton’s third law doesn’t directly relate to house prices. And strictly speaking, he’s not saying that what goes up must come down. [Read more →]

Most days we like to give you something actionable, or something useful.

An idea you can take away and – hopefully – use to make yourself a few bucks on the stock market.

But sometimes we get an idea that won’t give you the chance to make a buck. We had such an idea over a year ago.

We didn’t make any money from it. And we don’t think you made any money from it either…well, not yet anyway.

Yet we told you because we thought it was important that you know about it.
And even though you may not have made a buck from it, we’re certain it could have saved you a few bucks. Or at the very least, saved you the stress of investing in a volatile market. [Read more →]

In Slipstream Trader, Murray Dawes explained the bizarre state of the market in a recent update to his subscribers:

‘The twilight zone of bad news being good news and good news being good news can’t last forever…’

Sure enough, yesterday the RBA said:

‘This decision [to lower interest rates] is based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected…’

Weak economy? Why wouldn’t you buy stocks!

Of course, it’s not quite that simple. Investors try to buy and sell in advance of good or bad news. When you get the good or bad news, that’s often seen as the time to buy…or sell.

Investors who bought yesterday figured that lower interest rates would stimulate the economy, which would be good news for stocks. [Read more →]

This article is contributed by Pinnacledigest. One of the TOP sites for up to date information on the Canadian and US Stock Markets. For more information  subscribe to their free newsletter.

Dear member,

On Wednesday, after the market closed, we released our exclusive report on our new client and Featured Company, Clean Seed Capital (CSX:TSXV). We’re comfortable making the assumption that none of our members, including our team, have ever invested in a company like Clean Seed. For a junior TSX Venture company, it’s in a league of its own. We wanted to make sure you had the opportunity to read our exclusive report in case you missed it on Wednesday.

Click here to read our exclusive research report on Clean Seed Capital.

Highlights from our report:

* Management and insiders own roughly 46% of the outstanding 21.6 million shares.

* The VP of Clean Seed Capital was responsible for the coordination and implementation of a No-Tillage Agriculture program funded by the Howard Buffett Foundation. He was also a team leader for projects with World Vision, USAID and a local consultant to the World Bank. [Read more →]

In Europe, or anywhere for that matter, if you want to know what’s really going on you just have to listen out for the ‘official denial’.

On April 10, the Financial Times wrote:

‘Spanish ministers and European Union officials took turns on Tuesday to deny that the country needed an international bailout, in an effort to soothe the bond market.’

Translation: Spain needs a bailout.

The dysfunctional monetary union that is Europe is back in the spotlight. Spain’s economy is in recession. The government will not hit its budget deficit targets. The yield on 10-year Spanish government bonds breached 6 per cent for the first time since December. [Read more →]

Both short term and long term trading can be effective trading strategies,however,long term trading has several significant advantages. These include the effect of compounding, the opportunity to earn from dividends, reduction of the impact of price fluctuations, the ability to make corrections in a more timely manner, less time spent monitoring stocks.

1. Dividends.

Holding a stock to take advantage of payouts from dividends is another way to increase the value of an investment. Some companies offer the ability to reinvest dividends with additional share purchases thereby increasing the overall value of your investment. Additionally, dividends are more a reflection of a company’s overall business strategy and success than volatile price fluctuations based on market emotions. [Read more →]

Don’t worry if you’ve never heard of 3D printing. It’s so new it’s not on many radar screens yet.

But soon everyone will know about it.
Still in its very early stages, 3D printing is destined to have a huge impact on the entire world economy.

These “desktop factories” will one day become a $1 trillion industry – completely changing the traditional factory model forever.

It’s what’s known as a “disruptive technology.”

By the end of this decade, everyone from consumers to big businesses to solo inventors will be able to make their own unique products in just a couple of hours. [Read more →]

This article is contributed by Pinnacledigest.com. One of the TOP sites for up to date information on the Canadian and US Stock Markets. For more information subscribe to their free newsletter.

Fellow investor,

The next resource investing fad has arrived.

Over the coming months you are going to be hearing more and more about the shrinking supply of graphite, the lack of graphite mines operating outside of China, the control China is pursuing over the graphite market (export duty and VAT implemented) and the expected demand increase over the next decade. Sound familiar?

This rhetoric, although based on real fundamentals, is going to create another overbought and overplayed sector.

Graphite stocks will be the next fad investment, just as rare earth stocks were in 2010, molybdenum stocks in 2006 and 2007 and uranium stocks in 2005.

Just to be clear, fads aren’t a bad thing for us investors to get involved in, nor do they lack fundamentals, but they often follow the same pattern. There is the sudden bombardment of scary, supply shrinking and demanding increasing rhetoric being preached by newsletter types, a sudden staking surge of wannabe mining companies, an inflow of institutional money followed by a parabolic rise in stock prices. [Read more →]

March 13th 2012 – Australasian Investment Review – (AIR)

Sydney-based building products group, Alesco, continues to slim itself with another asset sale.

The company said yesterday that it will sell the Parbury decorative surfaces business and small-plastic mouldings business Dekorform to privately held Borg Group for $4 million.

The move follows two asset sales in 2011: Marathon Tyres for $23 million and its troubled water products business for $20 million.

Alesco said the proposed transaction would not change its profit guidance and the sale was expected to be completed by April.

Alesco will take book losses of more than $20 million in the sale. [Read more →]

In today’s Money Morning:…getting ahead of the curve the key to success…prepare to be patient…a growing and hungry world population to keep this commodity in demand…protecting yourself from a flawed plan…

One American Analyst’s Winning Aussie Investment Idea

“Australian house prices could decline by more than 5 per cent in 2012 if China’s economy experiences a soft landing with GDP growth at about 8 per cent.” – ratings agency, Standard & Poor’s

The problem with mainstream thinking is that it only joins the dots after an event.

In June 2010, the Age reported, “Despite the high debt levels, Standard & Poor’s said the housing market’s robust fundamentals would ‘continue to support the housing market’.”

It’s a point we’ve made many times. Mainstream economists only look at the surface of an issue. They rarely think about the layers beneath. Or the side effects of an economic action.

That means they’re always playing catch-up to an event. As any top investor will tell you, that’s the last thing you want. As it means you’re more likely to buy at the top and sell at the bottom. [Read more →]