Today's Video Update: Cyprus, the mouse that roared

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 20th of March.

Cyprus, The Mouse That Roared
On Monday, I appeared on CNBC Asia's "Cash Flow" program and discussed Cyprus as being the "mouse that roared." Cyprus geographically is a very small country and represents only .5% of GDP for the EU. However, the ramifications and the notoriety of what this small island country is/was trying to do by seizing savers bank accounts is a psychological bombshell that was heard around the world, especially in Europe. That leads us to Russia, which has a great deal of its money on deposit in Cyprus. It is also rumored that some of the largest deposited funds belong to the Russian mafia. If that is the case, we would not expect to see the proposed disastrous idea of stealing savings from individuals and companies get passed. Continue reading "Today's Video Update: Cyprus, the mouse that roared"

Today's Video Newsletter: The Fed meets today and tomorrow … what to expect

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 19th of March.

What Will The Fed Do?
The Fed will be meeting today and tomorrow to decide the future course of action for interest rates. I suspect the blowup in Cyprus, which could be the tip of the iceberg, will be weighing on policy makers' minds and that the Fed will hold steady. The Fed is on a tricky course to try to juice up the market and the economy with low interest rates. The strategy of keeping interest rates low and pumping money into the system to the tune of $4 billion every trading day has many detractors, who claim the cost of doing this is just too expensive and the nation cannot afford it. It would seem to this market observer that the Fed and the market are both addicted to cheap money. When interest rates begin to rise, and they will, expect to see a radical change in sentiment towards the equity markets as inflation will once again rear its value robbing head to a whole new generation of investors. Continue reading "Today's Video Newsletter: The Fed meets today and tomorrow … what to expect"

Today's Video Newsletter: Et tu, Cyprus?

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 18th of March.

Et Tu, Cyprus?
"Et tu, Cyprus?", meaning "Even you, Cyprus?" (or 'You too, Cyprus?') is Latin, often used poetically as "Et tu, Brute?" to represent the last words of Roman dictator Julius Caesar to his friend Marcus Brutus at the moment of his assassination.

Once again, the problems in Europe resurface not with Greece this time, but with Cyprus, the largest inhabited island in the Mediterranean. Is Cyprus the tip of the iceberg? Cyprus is a very small part of the EU economy, representing only about .5% of total EU output. What is really going on here is not so much what percentage Cyprus represents, but rather the seizure of bank funds and breaking the law to get them. According to law, every bank account in Cyprus is guaranteed or insured for €100,000. Here is the risk as I see it in the Euro equation, Continue reading "Today's Video Newsletter: Et tu, Cyprus?"

Today's Video Newsletter: The Whale That Swallowed J.P. Morgan

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 15th of March.

The Whale Trade That Won't Die
I'm sure by now you've heard of the disastrous whale trade that was made by J.P. Morgan (JPM) that came out of their London office. This trade cost J.P. Morgan a cool $6 billion. Well, the folks responsible for this trade are getting grilled on Capitol Hill today and I doubt seriously if anything will ever come of the "kabuki theater." Today's hearings allow Senators to pontificate and look very serious, as it plays well in their voting districts. Normally these type of Washington theatrics have very little effect on what's going on in the real world and in the marketplace. Today we will be looking at J.P. Morgan to see how this stock has performed so far this year. Continue reading "Today's Video Newsletter: The Whale That Swallowed J.P. Morgan"

Today's Video Newsletter: The Smartphone Wars - Who is Going to Win?

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 13th of March.

THE SMARTPHONE WARS - WHO IS GOING TO WIN?
Samsung is pulling out all the stops today with the launch of its new smartphone, the Galaxy S4. It has been reported that Samsung is spending upwards of $440 million to launch and promote this product. This is in contrast to the $330 million Apple spent on its iPhone launch. The stakes could not be higher as both companies are engaged in a global battle for command of the $400 billion mobile device industry. Continue reading "Today's Video Newsletter: The Smartphone Wars - Who is Going to Win?"