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February 11, 2011 – China's Long and Winding Road

Featured Trades: (CHINA'S ENVIRONMENTAL MOVEMENT) 2) China's Long and Winding Road. I spent the evening speaking to Gao Jie, a Beijing civil judge who left the bench to join China's growing environmental movement when her kids came home from school one day coughing and wheezing. You only have to inhale in the capitol city these […]

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February 11, 2011 – A Conversation With the Boots on the Ground

Featured Trades: (DEFENSE LANGUAGE INSTITUTE) A Conversation With the Boots on the Ground. I have spent many hours speaking at length with the generals who are running our wars in the Middle East, like David Petraeus, and James E. Cartwright. To get the boots on the ground view, I attended the graduation of a friend […]

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February 10, 2011 – The Real Estate Market in 2030

Featured Trades: (REAL ESTATE IN 2030) 1) The Real Estate Market in 2030. A number of analysts, and even some of those in the real estate industry, are finally coming around to the depressing conclusion that there will never be a recovery in residential real estate. Long time readers of this letter know too well […]

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February 10, 2011 – The One Bright Spot in Real Estate

Featured Trades: (THE ONE BRIGHT SPOT IN REAL ESTATE) 3) The One Bright Spot in Real Estate. After my weekly dump on residential real estate, I feel obliged to reveal one corner of this beleaguered market that might actually make sense. By 2050 the population of California will soar from 37 million to 50 million, […]

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February 10, 2011 – Quote of the Day

'There is one peculiarity about mass psychology in that when you are in a bubble, you can't see it. Bubbles are invisible when you are inside the bubble,' said the charming Jim Dines, of The Dines Letter.

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February 09, 2011 – Think Again Before Buying That Vacation Home

Featured Trades: (VACATION HOMES) 1) Think Again Before Buying That Vacation Home. If you're entertaining buying a vacation home any time soon, I'd think again. In my annual review of the residential real estate market in the High Sierra mountain hamlet of Incline Village, Nevada, and I am sad to report that antidepressant addiction among […]

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February 9, 2011 – Peter F. Drucker on Management

Featured Trades: (PETER DRUCKER ON MANAGEMENT) 2) Peter F. Drucker on Management. If you have been living in a cave for the last 71 years and missed the work of management guru, Peter F. Drucker, here is your chance to catch up. I just finished reading The Essential Drucker, a weighty tome of 368 pages […]

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February 9, 2011 – The Coming Takeover Wars

Featured Trades: (THE COMING TAKEOVER WARS) 3) The Coming Takeover Wars. The spate of takeover bids we have witnessed recently, the attempted BHP Billiton (BHP)-Potash (POT) deal, the Sanofi Aventis (SNY)-Genzyme (GENZ) deal, and Intel’s (INTC) acquisition of Infineon Technologies (IFX), is telling the rest of us reams about the broader market. Virtually all of […]

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February 9, 2011 – Be Careful Who You Snitch On

Featured Trades: (BE CAREFUL WHO YOU SNITCH ON) 4) Be Careful Who You Snitch On. Buried in the recently passed Dodd-Frank financial reform bill are massive financial rewards for turning in your boss. The SEC is hoping that multimillion dollar rewards amounting to 10%-30% of sanction amounts will drive a stampede of whistleblowers to their […]

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February 9, 2011 – Quote of the Day

'Banks have turned into gigantic gambling institutions. You never know what you own. I wouldn't touch them if you pointed a gun to my head,' said legendary hedge fund manager Bill Fleckenstein on Hedge Fund Radio.

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February 8, 2011 – Reading the Nonfarm Payroll Tea Leaves

Featured Trades: (JANUARY NONFARM PAYROLL)   1) Reading the Nonfarm Payroll Tea Leaves. Lifetime followers of the monthly nonfarm payroll report were more than a little amused by the Friday numbers, which could not have been more contradictory, conflicting, and confusing. The headline figure showed a gain of a paltry 36,000, yet the unemployment rate […]

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February 8, 2011 – India is Catching Up With China

Featured Trades: (CHINA VERSUS INDIA), (FXI), (TTM), (INP), (PIN), (EPI) 2) India is Catching Up With China. When I first visited Calcutta in 1976, more than 800,000 people were sleeping on the sidewalks, I was hauled everywhere by a very lean, barefoot rickshaw driver, and drinking the water out of a tap was tantamount to […]

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February 8, 2011 – Getting Something for Nothing

Featured Trades: (NISSAN LEAF), (NSANY) 3) Getting Something for Nothing. I just contracted to buy all the gasoline I want at 14 cents a gallon. No, I have not struck oil in my backyard, or come into an inheritance from a long lost Kuwaiti relative. That is the de facto price that PG&E is billing […]

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February 8, 2011 – Quote of the Day

'If you can get a dividend higher than the yield on ten year debt, it's an opportunity we haven't seen in our lifetime. On a five year horizon, investing in large multinationals with high dividends will have a large payday' said Lawrence Fink, CEO of BlackRock.

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February 7, 2011 – Years of Pain to Come in Residential Real Estate

Featured Trades: (RESIDENTIAL REAL ESTATE) 1) Years of Pain to Come in Residential Real Estate. Regular readers of this letter are familiar with my antipathy towards real estate of every flavor, with the exceptions of multi-unit dwellings (apartment buildings) and farmland . So my interest was piqued when Ron Peltier spoke the other day, the […]

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