Read ‘Reader Help!, Global Crops, U.S./China Compromise?, ABC News’, e-mailed today to StockResearchPortal.com Subscribers.  The e-mail:

• asks for feedback from readers of our daily e-mails pursuant to a short 5 question survey that anyone reading this blog post also can complete;

• discusses an article that speaks to the current Global Agricultural Crops situation, and the prospective importance of world population growth and agricultural issues;

• discusses the alleged U.S./China Compromise – which wasn’t much a compromise at all – that resulted from last weekend’ G20 Finance Ministers Conferene;

• discusses the timing of monthly U.S. unemployment figures as portrayed by ABC Evening News last night; and,

• the ‘Company Research’ feature offered by StockResearchPortal.com.

In part, the e-mail reads:

“Reader Help!

Each day well over 1,000 people from over 100 countries read these e-mails, and that number continuously grows.  We are contemplating changing the format to one that is more ‘Newsletter’ than ‘E-mail’, although in many respects I see that as a ‘form versus substance’ thing.  As we work to make these e-mails more valuable to you, and consider and plan such a change, it would be extremely helpful to us (and greatly appreciated) if you take the time to complete the following 5 Question Survey – completion time 4 minutes.

Global Crops

I consider an article this morning titled ‘5 Dangers To Global Crops That Could Dramatically Reduce The World Food Supply’ to be a definite ‘must-read and think about’ one – reading time 3 minutes.  There are a lot of things fundamental to our collective well-being that are, in my view, not given enough focus.  One is sheer population growth in a world that is physically ‘finite’, and one of the obvious offshoots of this is world food production.  Imagine having a store of physical gold worth a large amount of ‘barter in exchange’ value but have no food or access to food.  It wouldn’t be much fun (at an obvious extreme) to starve as you fondled your one ounce gold bars.

U.S./China Compromise

A Seeking Alpha article this morning titled ‘U.S., China and the One-Sided Compromise’ discusses and comments on the so-called concession Timothy Geithner (U.S. Secretary General) extracted from China at last weekend’s G-20 Finance Ministers meeting – to whit, that the Chinese agreed to ‘look into a revaluation of the yuan and the management of trade surpluses’.  Written by John Browne, Senior Market Strategist for Euro Pacific Capital, Inc. and a former member of the U.K. Parliament, I strongly recommend you read this article and think hard about what it says – reading time 6 minutes.  I commented on the article this morning as follows:

John: In my view an excellent 10,000 foot summary, and one well worth taking the time to read – and more particularly to ‘reflect on’. I am particularly interested in your statement that “the Chinese did agree to “look into” a revaluation of the yuan and the management of trade surpluses”. Aside from what I see as ‘the obvious’ with respect to ….. – to read more click here

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Read ‘The Equity Markets, U.S. New Home Sales’, e-mailed yesterday to StockResearchPortal.com Subscribers.  The e-mail discusses:

• an article that discusses and investment advisor’s view that the ‘better than expected reported earnings for this past quarter by many companies’ signals a ‘V-Shaped Recovery’ for the U.S. economy – and why we think that view makes little sense.  This segment of today’s e-mail also discusses yesterday’s U.S. equity markets drop, and the purported reason for that – which we think also makes little sense;

• U.S. New Home Sales, and the importance for meaningful U.S. job creation of a recovery of this sector; and,

• the ‘My Investment Portfolio’ feature offered by StockResearchPortal.com.

In part, the e-mail reads:

“The Equity Markets

An article this morning titled ‘How a V-Shaped Recovery in Earnings Will Boost Economy’ is in my view a ‘must read’ for anyone investing in the equity markets.  It is a very short 4 paragraph article – reading time 1 minute.  I completely disagree with the views expressed by the author, and commented on the article as follows:

In my view there is a serious disconnect between the author of this article seemingly thinking that an expression of company earnings (which are subject to subjective accounting rules) is a portend of a ‘V Shaped Recovery’ and U.S. Main Street. Economic recovery has to do with the economy of a country, not with how individual multi-national companies report quarterly earnings (or for that matter report quarterly free cash flows – the better indicator of a companies activity from an ‘underlying value’ point of view). In my view to reach any conclusion on a country’s (or world) economic recovery or lack thereof based on individual company earnings reports is folly.

I suggest that after reading the article and my comment you think seriously about whether you agree with the author, me, or are somewhere in between – although in this case I don’t think an ‘in between position’ makes any sense.

I was also quite taken with the reason primarily given by market pundits for yesterday’s drop in the U.S. market indices – to whit, that those equity market indices dropped because the second round of U.S. Government Quantitative Easing may not be as extensive as the markets have been anticipating.  If the U.S. equity markets really dropped for that reason, I think market makers and investment advisors really need to ‘give their respective heads a shake’.  To me, any amount of U.S. Government second round Quantitative Easing will prove to be nothing more or less than a ‘postponement strategy’ generated by a partisan and largely deadlocked Washington political environment.  I continuously say, and say once again, that what is needed in the U.S. is a bi-partisan political strategy that results in returning meaningful, long-term jobs to America, and gets young unemployed Americans over 18 years of age working in productive jobs.

It continuously seems to me that the ‘Wall Streeters’ primary interest is focused on ‘keeping the game going as long as possible’, without particular regard to the long-term well being of U.S. Main Street – ultimately in the past the ‘life-blood’ that underpins the U.S. economy, and historically equity investment in the U.S.  If I am wrong it this (and I urge you to write to me at info@stockresearchportal.com if you think I am), the ‘Wall Streeters attitude’ I have described will, in my view, in the end bite everyone ….. – to read more click here

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Read ‘QE2 Revisited, G20 Currency Accord’, e-mailed today to StockResearchPortal.com Subscribers.  The e-mail discusses:

• an article the disusses quantitative easing which is well worth reading.  We commented on the article, received a reply from the author, and replied ‘to his reply’ – all which ought to be seen a highly informative to equity investors;

• A second article that discusses the ‘collapse’ of last weekend’s G20 ‘currency accord’.  Again a useful ‘read and think about’ article;; and,

• the ‘Today’s Filtered News’ feature offered by StockResearchPortal.com.

In part, the e-mail reads:

“I think an article this morning titled ‘The Likely Effects of QE2’ is worth reading – reading time 5 minutes.  Written by a Geoff Abbott, a young (if his picture that accompanies the article is a ‘real picture’, which I assume it to be) New York based investment manager who recently started his own long/short equity fund, his views and mine on the current state of the U.S. ‘recovery’ are very much the same.  That said, I commented on his article as follows:

Geoff: I commend you on your thinking in this article, but think your two opening sentences – “As a bottoms-up manager, I tend to make capital allocation decisions without regard to the macro environment. However, I do keep one eye on emerging trends to the extent that they might provide me opportunities to take contrarian positions.” – are themselves somewhat contradictory.

Moreover, while I understand (or so I think) what you mean by ‘bottoms-up investment management’, surely no ‘bottoms-up manager’ makes investment decisions on behalf of his/her clients without regard to the prospective macro-economic outlook, as to do so would be to disregard the fundamental tenant of value investing – that being that the current value of any security is the present value of all future benefits that may be derived from owning it, which future benefits typically are very dependent on the macro-economic outlook at any given point in time.

Good article in terms of its content – which content except for the first two sentences I agree with – but I will be curious to know your response to this comment if you elect to reply.

Geoff replied to my comment as follows:

Ian: Thanks for the comment. When I wrote this article, I intended to phrase the opening as I did. I don’t view the opening sentences as contradictory. I wrote “I TEND to make capital allocation decisions” rather than “I always make…” I continually survey the macro environment, but my opinion about the economy only rarely influences ….. – to read more click here

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Read ‘China Economics 101, Retirement Outlook’, e-mailed today to StockResearchPortal.com Subscribers.  The e-mail discusses:

• five charts on the current China economic outlook, and comments on the ongoing Yuan/U.S.4 currency debate, which seems hardly to be a debate at all;

• the U.S. Retirement Outlook and the important issue of youth unemployment in the developed countries; and,

• the ‘Country Economic/Political Commentary’ feature offered by StockResearchPortal.com.

In part, the e-mail reads:

“China Economics 101

An article yesterday titled ‘Top 5 Graphs of the Week: China Economic Outlook’ shows charts on (1) China GDP, (2) China Inflation Outlook, (3) China Monetary Policy, (4) China Retail Sales, and (5) China New (business and consumer) Lending.  In summary, in Q3 China’s annualized GDP growth dropped slightly to 9.6%, while its reported CPI is running at 3.6%.  China’s consumers continue to spend, and internal borrowings continue to increase.

The graph on Monetary Policy is interesting, and to me emphasizes what I suggested in an e-mail last week – that China’s 25 basis point increase in its internal interest rate ought not to be seen (or so I think) as particularly significant in the context of the ongoing Yuan/U.S.$ currency debate (which to me seems hardly to be a debate in circumstances where the U.S. Administrations ‘huffs and puffs’ and the Chinese say very little).  It makes one wonder whether the U.S. Administration could ‘huff and puff’ so much that it might ‘blow its own house down’.

I suggest you read the referenced article and review the five charts – reading time 4 minutes.

On the same note, a second article yesterday titled ‘Geithner Says Currency Manipulations Must End’ reported that Timothy Geithner, U.S. Treasury Secretary, called on the G20 Countries to agree on a ‘Cap’ on their trade surpluses.  Aside from what I think to be a serious level of misunderstanding of human nature in such a request, the article did nothing more for me but reinforce my previous comment on the Yuan/U.S.$ currency exchange ‘debate’.  I commented on the article as follows:

Have you noticed that the debate over the Yuan exchange rate hardly seems to be a debate at all. To have a debate and constructive dialogue you need ….. – to read more click here

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