MARKET
ROUNDUP
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Dow
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+40.59 to 17,652.79
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S&P 500
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+1.08 to 2,039.33
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Nasdaq
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+5.01 to 4,680.14
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10-YR Yield
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-.012 to 2.347%
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Gold
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+$1.20 to $1,160.30
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Crude Oil
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-$2.56 to $74.62
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By
Mike Larson
Russian
President Vladimir Putin is pushing west … and stock markets
just keep pushing higher!
It
may seem like a strange new world. But it’s the one we live
in, thanks to the Global
Money Tsunami, so you better get used to it!
Just
in the last 24 hours, NATO
officials warned that Russia is sending several columns of
tanks, troops, artillery, and air-defense systems across the
border into eastern Ukraine. Artillery skirmishes are raging
near the city of Donetsk as well, suggesting the September
cease fire is in tatters.
"Read More"
Russia
could soon make the crisis in Ukraine explode.
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In
addition, officials with Russia’s military say they’re now
planning to send long-range bombers as far afield as the
eastern Pacific Ocean and the Gulf of Mexico to conduct
maneuvers. Those kinds of long-distance flights haven’t been
conducted since the depths of the Cold War.
Now
I seriously doubt Putin’s pilots plan to bomb New Orleans
during Mardi Gras, or land in Tampa to join the pirate-themed
parties at the annual Gasparilla fest. But the message is
clear. Putin is pushing harder and harder against the West,
despite the threat of ratcheted-up sanctions from Europe and
the U.S.
Yet
even as those pressures increased in the past few days, the
markets seemed not to notice. The Dow set yet another record
high of 17,705 earlier today, while the S&P 500 extended
its rally from the mid-October lows to more than 220 points
(measured from intraday low to high).
“I
seriously doubt Putin’s pilots plan to bomb New Orleans
during Mardi Gras.”
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The
catalyst? That flood of money that keeps sloshing from riskier
overseas markets and lousier economies to ours here in the
U.S. And it doesn’t appear to be drying up yet based on
currency market action. Even as the euro attempted to
stabilize briefly today, the British pound sank to a fresh
14-month low against the dollar, while the Japanese yen
plumbed depths not seen since October 2007.
So
what are you doing here as an investor? Do you look to hedge
against the risk Putin launches a full-scale shooting war in
Eastern Europe? Or do you just go along for the ride as the
money that unleashes drives U.S. stocks higher? Let me know
via the Money
and Markets
comment section!
Incensed
about bankster rip offs? You’re not alone! Many of you
chimed in on the website in the wake of the latest
multi-billion dollar settlement between regulators and
mega-banks.
Reader
Linda G.
pulled no punches, saying: “Put the scandals behind them?
Why should they? Nobody is ever prosecuted for grand larceny,
which is what it is, and the fines are always a small fraction
of what they stole from investors and pension funds by lying
and cheating.
“They
are a mob of gangsters, and I fear the opportunity Obama had
to break them up was a once-in-a-lifetime shot that will never
come again. Now they are so powerful they literally run the
government, making the entire federal government and all
members of Congress party to their crimes.”
Reader
Mark
also jumped in with these comments: “We have the Libor
rigging, Forex deception and theft, as well as the
now-documented rigging of the gold fix … The regulatory
bodies are so corrupt that it’s obvious that much of the
financial world is merely a charade and that free markets are
quickly becoming extinct.”
Finally,
Reader
Jeff
added the following: “Mega-bank scandals … billions in
fines … will it get them in line? Probably not. Two things
seem wrong:
“First,
what does the government do with that money and does it ever
trickle down to an individual who was screwed by the scams?
“Second,
the only thing that will change behavior is jail time
including for board members. Fines become a cost of doing
business … jail time gets personal.”
I
wouldn’t argue with a single word any of you said! It seems
like mega-banks are trying to rig virtually every market
they’re involved in, and yet we see no real jail time,
slap-on-the-wrist penalties, and so on. And regulators refuse
to wield the biggest cudgel they have — breaking up the
behemoths!
Other
Developments of the Day
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Warren
Buffett is at it again! His Berkshire Hathaway investment
company just agreed to buy the Duracell battery business from
Procter & Gamble (PG,
Weiss Ratings: B).
The deal’s price tag comes to about $3
billion, and is in line with P&G’s stated goal of
spinning out the business in one way or another.
The
Obamacare law is coming under fire, with Republicans
threatening to dismantle or scale back parts of it as they
gain control of the Senate in addition to the House. Economist
Jonathan Gruber, one of the original proponents and
crafters of the health care law, didn’t help matters either.
At
a 2013 event, he said that Obamacare passed because of the
“stupidity” of average voters and a “lack of
transparency” about how it’s funded. A video of that event
then circulated online this week, sparking outrage among the
political class. Oops!
The
European Space Agency managed the amazing feat of landing the
small
Philae probe on the surface of the
67P/Churyumov-Gerasimenkohas comet (try saying that three
times fast! LOL). The problem? It’s not securely latched
onto the surface, and it may not be able to generate solar
power because it landed in a shadowed area.
Until
next time,
Mike
Larson
P.S.
You need to make your final decision right away; before
enrollment in Martin’s
Ultimate Portfolio
closes TOMORROW at 4:00 PM EST!
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