Real Estate
In March 2016, average Vancouver housing prices hit another record scorching hat trick on a sales breakout and listings dearth. Buyer mania continues to bid up anything that poses as shelter as it rides the 39 month momentum wave of single family dwelling prices that have been increasing at a 1.3% clip per month.
In March 2016 total residential sales in Calgary continued up on seasonality after hitting a new low this past January in this data-set. Bulls are still juggling with knives… er, I mean bids in all three housing sectors as listings and sales climb out of the seasonal lows.
“Still No Confidence In The Rally” – that’s the title of the latest weekly BofA report looking at the buying and selling by its smart money clients (institutional clients, private clients and hedge funds), which finds that not only were sales by this group of clients last week the largest since September, and the fifth-largest in our data history, but this was the 10th consecutive week of selling as absolutely nobody believed this fakest of fake “rebounds” in recent history.
Is This Dog About To Have its Day?
A full five years after the meltdown at the Fukushima-Daiichi nuclear facility very little has changed within the nuclear industry.
Nuclear power’s contribution to the global electricity mix remains steady at roughly 11% according to the IEA.
Globally, the nuclear fleet numbers 440 in size across 30 countries requiring around 170 million pounds of uranium. 66 reactors are under construction and another 173 are planned[1].The existing fleet generates 382 GW of electricity.
The uranium market is adequately supplied with current demand at 172 million pounds of U3O8and primary supply of 146.5 million pounds plus secondary supplies of 42.9 million pounds as of 2014.
The current uranium spot price of around $28 per pound reflects an evolving dynamic consisting of excess supply, reactor underfeeding (excess enrichment capacity), and uncertainty around the Japanese reactor fleet where only three of the 54 reactors are back on line.
Current prices are too low for producers to consider major capital investments with many believing that the incentive price is ~$65 per pound
“Everything suggests to me that the world is, in fact, in a bear market and that what we’re having is the end of the first bear market rally…
According to my work, the final low of the bear market is not now–it’s not even this year. It’s next year and it will be quite a bit lower than we are now in virtually all markets…
The economies are cooling down, some more than others, and Janet Yellen doesn’t want to crash things”.
Thoughts are from our recent conversation with Robin Griffiths, Chief Technical Strategist at The ECU Group, which can be listened to on the Newshour podcast page here or on iTunes here.
Markets may be efficient; In 2013, Eugene Fama received a Nobel prize in economics for proving this theory. Yet investors continue to fear the markets when in fact the greatest danger to their portfolio is themselves. Investors lose between 3% to 4% per year because of poor decision making… CLICK HERE to watch the video
The Evidence-Based Investor Video series is a service provided by Paul Philip and the team at Financial Wealth Builders Securities
-
I know Mike is a very solid investor and respect his opinions very much. So if he says pay attention to this or that - I will.
~ Dale G.
-
I've started managing my own investments so view Michael's site as a one-stop shop from which to get information and perspectives.
~ Dave E.
-
Michael offers easy reading, honest, common sense information that anyone can use in a practical manner.
~ der_al.
-
A sane voice in a scrambled investment world.
~ Ed R.
Inside Edge Pro Contributors
Greg Weldon
Josef Schachter
Tyler Bollhorn
Ryan Irvine
Paul Beattie
Martin Straith
Patrick Ceresna
Mark Leibovit
James Thorne
Victor Adair