Hard to believe that $918 million of market value can get wiped away simply because a guy shouts ponzi scheme into a market bullhorn. Sell first, ask questions later seemed to be the response today to a research report by the previously unheard of Muddy Waters regarding TSX-listed Sino-Forest . Just because YBM or Bre-X came to pass, doesnt mean that this is another example of lax oversight of an offshore play. For the TSX to halt the stock on a bears report, though, makes you wonder why theyre so skittish.

Heres whats being reported about the Muddy Waters call:

Muddy Waters is initiating coverage on Sino-Forest with a strong Sell rating.

According to Muddy Waters, like Madoff, TRE is one of the rare frauds that is committed by an established institution. In TREs case, its early start as an RTO fraud, luck, and deft navigation enabled it to grow into an institution whose “quality management” consistently delivered on earnings growth. TRE

Read more…

A recent decrease in volatility for gold and silver prices has investors wondering whether a new base is being formed for the precious metals. A period of price consolidation indicated great indecision among commodities investors, but new numbers suggest a more limited range of value is being established for two assets that have seen impressive gains followed by erratic performance. Bases of support for and resistance to pricing across both bullion and exchange-trade fund investment options are being tracked, and stability indicates more people willing to reenter the market. For more on this continue reading the following article from The Street.

News wires are very quiet in regard to gold (1525) and silver (37.10) bullion-related issues, as price action indicates that a volatile period of price consolidation may be over and that buyers are moving back into the market.

Trade desk updates recently highlighted the potential for choppy consolidation in bullion and in SPDR Gold Shares(GLD) and iShares Silver Trust(SLV), the exchange-traded funds that track bullion momentum.

Read more…

• Confidence in the eurozone is decreasing. The European Commission’s Economic Sentiment Indicator (ESI) eased to 105.5 in May, down for the third month in a row.

• Survey details showed a mixed picture. Confidence in the industrial and services sector declined, while it increased among consumers.

• Today’s data signal that after the extremely positive performance of Q1, activity is losing momentum. Notice, however, that eurozone indicators, albeit in moderation, remain at relatively high levels by historical standards. GDP could increase by around 0.4-0.3% over the coming quarter, that is in line or slightly above the potential growth rate of the economy.

Confidence in the eurozone is decreasing. The

Read more…

Remember the cheery pieces from the MSM about the CPP Investment Boards recent home run on our $300 million Skype investment? I wonder if the same interest will be shown in yesterdays Freescale initial public offering, now that our ~50% paper loss on that investment has been confirmed in the marketplace .

I was a big fan of the Skypke deal from the outset , but one of the challenges with LP co-investing is simply this: do you show them every deal? Or just the ones that are larger than the private equity firm wants to carry on its own balance sheet? If the average mega buyout firm does 12 transactions in a specific fund, and syndicates a third of them to their Limited Partners based solely on the sizes of the equity cheque required, how does the LP pick-and-choose whether to go into the deal or not? One of the primary reasons why pension funds invest into capital pools is to diversify their risk; which is undermined when you double or triple down on a deal .

The strategy worked in Skype, but not with EMI or Freescale, to name but two examples.

Read more…

I am 69 and retired. I have about 50 percent of my savings in short-term bond funds and inflation-protected funds. I recently moved out of intermediate bond funds into the short-term funds. I’m concerned about the much-discussed “bond bubble.” What should I do? My other assets are invested in cash (40 percent) and stocks/mutual funds (10 percent). Am I on the right path, if protecting my assets is my goal?

First recognize that protecting your investments against loss of principal is different from protecting the purchasing power of your investments. The inflation-protected investments are protecting you against a loss of purchasing power by paying part of its yield based on the inflation rate, typically measured by a change in the U.S. Consumer Price Index. You haven’t provided a breakdown between the inflation-protected funds and short-term bond funds, so it’s not clear what part of your portfolio is protected against inflation.

There can be price risk in these inflation-protected funds if investors start looking for higher real returns.

Read more…

One of pthe main keys to successful personal financial management is having a solid monthly budget. By organizing your income and expenses according to the predetermined budget, you can stick to the original plan at all times and continue to develop your wealth gradually. To help you get started, we are going to discuss how to make a good personal budget in this article.

Start by collecting all financial statements. This way, you can accurately calculate your expenses, incomes, and other aspects of your personal finance in details. Monthly bills, insurance statements, and other common financial statements are your weapons to successful budget creation.

Once you have all the needed information in hand, you can continue the process by sorting out your monthly expenses. Start with the regular expenses such as utility bills, insurance premiums, loan repayments, and other expenses; you will have a clear picture of how much you are spending regularly each month this way.

After you sorted out the regular expenses, you can calculate other expenses accordingly. Read more…