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Jason Hamlin asks “How Long Will Gold’s Consolidation Last?” It shouldn’t be much longer. Today’s Commitments of Traders report says that commercial hedgers are now only net short 83,584 contracts. The commercials haven’t had a net short position below 80,000 contracts since June of 2005 when gold was at $426 an ounce.

I rarely see an analysis on individual stocks that make me want to do further research. But Robert Blumenthal’s excellent analysis of for-profit universities Strayer (STRA) and Capella Education (CPLA) is an exception.

I agree with his premise that the future of higher education lies in the for-profit sector. And both companies have a wide moat. Also, the technical picture for both STRA and CPLA looks strong as both are trading around their highs. Neither stock is cheap right now, but Blumenthal has convinced me to put them on my watch list.

Mike Shedlock recommends two books: Carolyn Braun’s Just What I Said and Fari Hamzel’s Master Traders. This quote from Master Traders is a jewel:

“Contrary to what 99% of the investment population thinks, trading is not about being right. Being right is easy. Trading is about being wrong; and navigating this inevitable occurrence distinguishes winners from the losers in the long run.”

A pin-on-the-bulletin-board, tape-on-the-computer, repeat-every-day kind of quote.

From The Telegraph:

The Bank for International Settlements, the world’s most prestigious financial body, has warned that years of loose monetary policy has fueled a dangerous credit bubble, leaving the global economy more vulnerable to another 1930s-style slump than generally understood.

An interesting observation about the Barron’s annual list of top 500 companies. It appears that the ones on the bottom of the list perform best and the ones on the top perform worst. The moral is to buy low and sell high.

Random Roger uses a postage stamp to illustrate the effects of inflation on an investment portfolio.

we have these observations. On the stock market:

“Keep your eye on these two lows: June 7 Dow 13,266.73. June 12 Transports 4,994.86. For a near-term breakdown, BOTH of those lows would have to be violated.”

and on Wednesdays trading..

“Hard to fault today’s action, which I consider very bullish. Industrials and Transports rallied well off their June lows, which is a major positive.”

He’s sees the gold action the way I do:

“Gold is still well above its 20-month Moving Average, which stands now at 620. And gold is very far above its 40-month Moving Average, which now stands at 523. It shouldn’t be surprising if gold were to continue its corrective action possibly to make contact with its 20-month MA in the 620 area. For we long-term gold holders, such action would be logical, normal and hardly the end of the world.”

Indeed.

is probably not a bad idea. Unfortunately, debt collection is definitely a growth industry .

just follow the money. It’s designed to help mutual funds and advisors make more money. If they can get you to buy-and-hold they can rack up more fees:

MacKenzie believes that the buy-and-hold mantra of financial advisors is promotional material masquerading as educational advice. Mutual funds and advisors earn more fees the longer their clients remain invested. To see the bias, look at how industry seminars and brochures point out the reduction in returns from missing the 20 best days in the market while rarely pointing out the boost to returns from missing the 20 worse days.

you’re better off than 41 million Americans. This is quite amazing:

A post on our Berkshire Hathaway discussion board cited data from a U.S. Census table listing the distribution of household net worth in America. Shockingly, 15% of American households have a net worth of zero.

A quick check of other statistics told me that there are roughly 105 million households in the United States, recently sporting an average of 2.6 people apiece. A few calculations later, I arrived at a grand total of 41 million people living with a net worth of zero.