A Jobs Jamboree Friday

Good day… And a Happy Friday to one and all! Last day here in Orlando; yesterday was for sure a beauty of a day! With meetings over early in the day, I actually got to enjoy some of the day outside! YAHOO! I head home today, and as I said earlier in the week, I’ll probably drop in a heap from exhaustion! But… It’s Friday! And Daylight Savings Time begins this weekend, so don’t forget to set your clocks ahead one hour… Geez Louise, I just thought of that. Not only am I exhausted from this travel, but I also lose an hour this weekend! UGH!

OK… A pretty boring day in the currencies yesterday, with most pairs trading in a very tight range. The European Central Bank (ECB) did raise rates yesterday as predicted by your truly, and ECB President Trichet kept to the same song sheet regarding rate policy still being accommodative. He did make a slight change and said that ECB rates are moderate rather than low.

As I said yesterday, there are those in the markets that believe the ECB has come to the end of their interest rate hike rope. But I’m not buying it. Money supply is still soaring in the Eurozone… And that, my friends, is enough to make a Central Banker sweat like a pig! Well, any Central Banker that’s worth his salt! I’m not going to mention names or point fingers at anyone, so don’t worry Big Al, and Ben… Ooops! Did I say that out loud?

Besides, the Eurozone economy is going strong right now, as witnessed by the surge in the January German Industrial Production of 1.9%!

The Bank of England (BOE) kept the dust covers on their rate hike machine yesterday… But don’t think for a minute that they’re finished either! I would have to believe that BOE Governor King is chomping at the bit to get rates higher. Inflation is running much higher than the target of 2% (at 2.7%) and money supply is running at a 13% pace! That’s not right… That has to be corrected immediately! I would say now that in one month we’ll see the BOE pull the dust covers off once again.

Well… Today is a Jobs Jamboree Friday! But before you go out and buy those sound makers and horns to celebrate, let me tell you that the February job creation was probably less than 100K… OUCH! Now that’s going to leave a mark! I keep hearing about labor strength in the United States and I just don’t see it, do you?

We’ll also see the color of the trade deficit for January. Right now it is forecast to come in just a bit below $60 billion. I wouldn’t be surprised to see it push back over that level. Of course, it’s not like $59 billion isn’t a problem and $60 billion is… It’s really all about the perception that the media creates. If the deficit is $59 billion, the media will go bonkers over how it is “narrowing”. They create a perception that $59 billion is good. Well… It ISN’T! And we know that! However, it’s the markets that have a tough time with that separation of fact and media created perception!

I ran into the Big Boss Frank Trotter here in Orlando. Well, he actually introduced me to the crowd and presented me with a nice award, but that waters down the story I was trying to tell about running into him here! Anyway… Frank wanted to know when I was going to talk about our new MarketSafe CD. And I said, “Tomorrow, tomorrow, I’ll talk about it tomorrow, it’s only a day away!” (OK, that was really corny!)

Here’s the skinny… You know how I’ve been such a cheerleader for Japanese yen, based on their economic growth and the fact that it is the most undervalued currency that exists… Our Friend, Steve Sjuggerud, recently wrote in his True Wealth newsletter that he had just gotten back from a visit to Japan, and witnessed a recovering housing market – one that had been beaten down for over a decade. He then came to us, and asked us to create a MarketSafe product on the Japanese housing market.

I’m proud to say that we have done just that! Introducing EverBank’s Japanese REIT MarketSafe CD, which like all our MarketSafe products, gives you 100% principal protection, and is held in our FDIC insured bank. This CD’s overall return will be based on the TSEREIT index that is sold on the Tokyo Exchange, and 100% of that upside performance will be yours at the maturity, which is 3.5 years. The minimum investment is only $1,500!

We have full information brochures and terms and conditions ready and waiting to get into your hands. Simply send us an email (you can reply to the Pfennig and we’ll get it) requesting the information.

We’ve waited a long time to issue a new MarketSafe CD, and this one is very exciting!

OK… I think I’ll head to the Big Finish now, as I have an appointment this morning that I’ve got to get to!

Currencies Today: A$ .7797, kiwi .6890, C$ .8490, euro 1.3160, Sterling 1.9322, Swiss .8160, ISK 67.40, rand 7.3850, krone 6.16, SEK 7.0650, forint 191, zloty 2.95, koruna 21.38, yen 117.40, baht 32.95, sing 1.5255, HKD 7.8150, INR 44.25, China 7.7440, pesos 11.15, Silver 13.10, and Gold…. $655.40

That’s it for today… Got to go to one of my favorite places yesterday… Jimmy Buffet’s Margaritaville, and have a Cheeseburger in Paradise! It was Chris Gaffney’s first visit there, and I’m sure now that it won’t be his last! Don’t forget that the time changes this weekend. As I said the other day, this weekend is exciting for college basketball lovers, the brackets for the tournament are announced on Sunday. My beloved Missouri Tigers won’t be there this year. But wait till next year! Uh-Oh, am I beginning to sound like… Nah… Couldn’t happen! Have a great Friday and weekend!

Chuck Butler — March 09, 2007

The Daily Reckoning