Correlation Economics Backup

Remember my post on KYN , SIMO , TAICY ,  TYG , EWZ ? All have been doing well. EWZ has given a handsome dividend while appreciating 10%, I'm amazed how well this stock screener idea works. Track record 5-0.Time to move on. If I don't have any ideas anymore what to buy, I use the stock screener . What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change. 1) Market Cap: do not choose small companies as they are mostly fraudulent or don't have sustainable earnings. Don't choose big companies because these are not volatile enough to get fast profits from. I'd filter between 200 million and 4 billion. 2) P/E ratio: choose the companies with the lowest P/E ratio, these companies are dirt cheap while still having earnings. Cheap is below P/E of 5. But do not choose below P/E of 2 because those are mostly companies that are going bankrupt or have bad growth. 3) Dividend yield: always choose companies that have dividends, because t...

Greek bank deposit flights are continuing and we can see that here in the column of "other euro area residents". It's a very easy way to check if there is a deposit flight going on in your European country. (I checked Belgium and we are pretty stable) http://sdw.ecb.europa.eu/reports.do?node=1000003177 Greek deposits went from 155 billion euro to 147 billion euro month over month. They probably all went to Germany. But overall there is an increase in total deposits when MFIs are counted in. The Bank of Greece probably started confiscating deposits. So basically, people are running away with their money (drop in other euro area resident deposits), but the central bank is preventing that by confiscating it (rise in MFI deposits). The total amount of deposits look like this , red chart is Greece: The chart rises due to an increase in central bank deposits.   So how to use this? I would just keep in mind how to check on the deposit flight via the tables and at some point, whe...

Oil is going back into backwardation as predicted and this results in higher oil prices.

On the premium front in precious metals we see that the trend is still going up and I'm pleased to say that silver is a good buy at this time. Here is why. Silver premiums are going to hit new highs in the coming weeks, both at APMEX, silver miners and Shanghai.     There is a huge chance of a short squeeze in silver next week. The gold front is a bit less interesting. No short squeezes on the horizon and the premiums are flat, nothing special has changed.