carinsured

carinsuredThe invention of the car has led ways for people to travel faster without being confined on a fixed track like trains do.  The automobile has helped not just in making travel convenient, but it has also helped in the distribution of goods and other products.  Basically, the invention of the car and the innovation in mass-producing it for the people had paved the way to the creation of new towns and cities.  Since cars also helps in making travel much faster, car owners do not necessarily have to live within their place of work as they can simply drive their cars to and from.

The advantages of having a car are aplenty.  Although the prices of fuel can sometimes limit your use, still, the conveniences that your car gives you are well worth it. Of course, as a car owner, you have certain responsibilities for owning one.  First is that you need to know how to drive safely and responsibly.  Next is that you need to duly have a license and registration which is a necessity in operating your motorized vehicle.  Another is that you need to maintain your car regularly and always ensure that it is in good working condition so you do not endanger those who are near you.

These days, there are millions and millions of cars that are on the streets.  This increased in number has only made vehicular accidents more common.  Given that speed is already a potential danger, having more of them, not to mention the increased in population and property everywhere, getting in a vehicular accident can be a very costly mishap.  If your car is responsible for the injury, damage to property, or death of a person, then it is only fair that you also shoulder the financial responsibilities involved with your accident.

In this day and age where money is a very important object, it is always in your best interest to protect your finances.  Since getting into an accident involves a lot of expenses, the best way to protect yourself from financial ruin is to have car insurance for protection.  The truth is that no one really ever wants to get involved in an accident.  However, if it does happen, having car insurance can be a financially-saving investment on your part.  At Car Insurance Red Deer, you can choose among the different car insurance policies they have that is ideal for your needs.  Having car insurance after all is the best way of being financially safe and protected than just being sorry.

Silver Wheaton (SLW) reports earnings

Real Deal portfolio member Silver Wheaton (SLW) reports increased earnings for the first quarter. Earnings were up 165% year over year.

“Record net earnings of $13.8 million ($0.07 per share) from the sale of 2.7 million ounces of silver, compared to $5.2 million ($0.03 per share) from the sale of 2.3 million ounces of silver in 2005.”Reports

 ”Record operating cash flows of $13.9 million (2005 – $5.2 million).”

“These results are spectacular, obviously assisted by continuing strong silver prices,” said Eduardo Luna, Chairman. “We expect our second quarter to be even better, as a result of silver sales starting up under our new Yauliyacu silver contract.”

Analysis: This is really a case of you aint seen nothing yet. As prices for silver move higher over the next several years I expect cashflow and earnings will explode upward. However I would be cautious here in committing new money as I expect the price of silver to pullback.

Take a look at the silver chart it has definitely gone parabolic. If you are invested in silver be careful as silver will most likely retrace quite a bit of this move. Nothing goes straight up without consolidating. Don’t believe the hype.

With crude hitting $70+ and many traders thinking we go higher this summer I submit this article from the Daily Reckoning about how the successful folks from tech are moving into alternative energy. The market is now large enough that it is attracting serious capital and brainpower. I am a peak oil advocate, however i am not a doomsdayer like Kuntsler. If there is a market smart people will step up and solve the problems and make money to boot. One quote struck me from this article,

”Energy has got to be one of the top five problems the world faces, and it’s been frustrating to watch activists and politicians fail to solve the problem,’’ Metcalfe recently griped. “Now it’s time for the entrepreneurs and scientists to give it a try…The markets for the [alternative energy] products are huge. If you can get it right it’s really a market that’s infinite. We’re hopeful.’’

I hold several alternative energy stocks in my personal portfolio and my Marketocracy portfolio. I will post some of the ideas in the forums.

David Pauly from Bloomberg writes that the commodity markets must be near a peak because he thinks everybody is invested there.

Analysis: As usual the media gets it wrong. Has there been more intrest in commodities? Absolutely however as Jim Rogers pointed out there has been no investment in any infastructure or capacity in decades. Yes producers will react but it takes time to build a mine (10 years or more depending on the local) and as Rogers has pointed out, even if a large oilfield was found it would take years to bring it online. I think there will be corrections along the way but this thing is going to levels that will make the internut and housing bubbles look sane.

Jim Rogers was quoted in Bloomberg yesterday and said the commodity bull has a long way to go. We here at the Real Deal like to follow the old adage of going where the smart money goes thats why we like Jim Rogers. This guy has made billions trading and he has been on this commodity supercycle theme sinec 1998-99.

He said,

“The shortest bull market for commodities lasted 15 years, the longest 23 years,’’ Rogers, 63, said in an interview. So if history is any guide, “they’ve got a long way to go.’’

“Supply and demand is terribly out of balance for nearly all commodities right now,’’ Rogers said in Singapore April 17. “This is not a bubble.”

“Nearly everything makes a new all-time high in a bull market,’’ said Rogers. He didn’t predict when gold would reach $1,000 an ounce”

More confirmation on housing deflation

Housing-Deflation

It looks like the mainstream media finally have started to pick up on what is being reported in the blogshere about the slowdown in housing. CNN has an article about the slowdown but still trys to qualify it by saying “it might just be there could be an element of self-selection, with agents suffering a slowdown more inclined to vent.” What will the FED do as this becomes apparent to even them? If the FED stops rasing rates or even has to cut rates what will happen to the dollar support? How will China and Japan react to a rapidily devaluing dollar? I think gold is sniffing this out.

Gold makes new high

Gold PriceGold reached another new high today. Anaysts say it is asian buying. I have a theory on what is going on, I think asian central banks are moving out of the dollar. I am of the opinion they are buying anything tangabile while they still can. I base this on some news I heard today from published minutes from the last FED meeting. Apparently the FED governors believe “that the end of the tightening process was likely to be near, and some expressed concerns about the dangers of tightening too much, given the lags in the effects of policy.” Oh boy, if they really stop raising rates the dollar will collapse, can you say hyperinflation. So it would make sense that foriegners, who hold trillions in our dollars, would want to get something of value before the FED devalues the currency. Overall a good day for our stocks I hope you are enjoying the ride.

Oil hits record

Price IncreaseI know the mainstream media says its a “terror premium” or its about Iran. Quite frankly my view is more demand then supply. Yes there are disruptions in Nigeria and there are still facilities in the GOM offline. Couple this demand with the FED money pump and all commodiites are heading higher. Are we heading for $100 per barrel?

We will dump the VPU the Vanguard Utilities ETF for a 4.2% loss. We bought it with the expectation that repealing PUHCA would unleash mergers in the utilities industry. Things have not worked out as we hoped and with interest rates rising we will move on to better deals.