Can you make your brain wave?

Some technologies start off as science-fiction, as they are often difficult to visualize and difficult to execute.  Space travel and rocket ships started out this way, like so many innovations over the past 100 years.  Medical technology also has made great strides that were unimaginable just a few years or decades ago.

One of the concepts trying to cross the line to reality is the ability to link the human brain to a digital computer, a concept that Elon Musk has termed the Brain-Computer Interface (BCI).  This radical concept has been around for almost 50 years, as research was conducted in the 1970’s at UCLA, funded by DARPA (US military) and The National Science Foundation.  This early research was conceptual, producing no working models.  Today we have relatively crude communication with the human brain via EEG’s, which sense and record brain wave patterns using an array of electrodes on the scalp.  The interesting observation is that the neurons of the human brain use the same power source as digital devices like computers – electricity.  So – why not develop ways for electro-fired neurons in the brain to communicate with electro-fired transistors in  digital devices?  We can now envision a BCI with some very useful applications, such as allowing amputees to have control over robotic arms and legs by just using their minds.

The technology is based on electrical impulses, as the brain sends and receives messages through the body’s nervous system.  Nerve cells (neurons) receive and pass along these electrochemical pulses back and forth throughout the body.  These cells operate on an all-or-nothing condition – they are either on or off, and this is eerily similar to the way transistors in a computer’s integrated circuit operate.  This comparison is very simplistic, and we cannot say that the brain uses conventional binary logic exactly like a computer, but neurons do rely on the all-or-nothing state to function.  Each and every sense, muscle movement, feeling, and thought is a result of the electro-firing of neurons in the body.

Capturing neuron activity, and doing so quickly and at a high resolution, is the key to getting the data required to eventually decode the true and complete messages the neurons are sending along.  Once we have the decoded messages we can pass them along to a digital device, such as a computer or robotic arm.  We are a long way from having a functioning, practical, and useful BCI, but there is progress being made by several technology companies to develop ways to better detect and capture neuron activity.  Currently, there are inventions being developed that will capture much more neuron activity than the external electrodes now in use, such as thin-layer implants that can insert an electrode “sheet” directly on the brain.  Imagine the day when we can simply think about waving a robot’s hand, and that brain wave will actually cause the robotic hand to wave.  This still sounds a bit like science fiction, but now we can visualize some of the very useful and helpful things that could be done.

Technologies like this bring about a number of ethical concerns and a question, as is the case with many of the new medical innovations, but the human mind is a very powerful thing, and also a very curious thing.  Who is to say where the boundaries of our curiosity should be set?  Can we now imagine all the experts, theologians, and politicians who will try to get it right – let’s give them all a wave.

Check out this video showing how a monkey was able to control a robotic arm with its brainwaves to eat marshmallows.

Trend Disruptors is monitoring these developments, and will recommend companies to invest in that will lead to success for the well informed investor.

Stay tuned!

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Stock Market crashes – again!

The S&P 500 plunged nearly 3% again today.

Today’s selling was driven primarily by the news that the ‘yield curve’ has inverted.  As long-term subscribers are well aware, we have been watching the yield curve for over a year now, and had posted a number of blogs on it such as here and here.

For a quick summary, whenever the yield curve becomes ‘inverted’ (meaning whenever short-term interest rates are higher than long-term rates) bear markets and recessions inevitably follow. Today, the 2-year Treasury note did rise above the 10-year Treasury note.

If you read the previous blogs we wrote on the yield curve you will understand that a recession usually happens 12-24 months AFTER the yield curve inverts, suggesting that this is not necessarily the end of the bull market. But it is a very important warning that a recession is coming and every investor needs to have a plan for that inevitability.

A couple of weeks ago, Martin was on the Money Talks investment radio show and in the interview he warned that we are in the “final innings of this 10-year bull market” and said that “it is time to get prepared for the melt-down”.  Here are some of the key points from the interview.

  • Bull markets tend to climb gradually, which we have witnessed since 2009, & then they typically end in a melt-up & ‘blow off top”
  • When that melt-up ends & the ‘blow off top’ hits, we will enter a new bear market
  • Bear markets happen much quicker, typically lasting about ¼ of the duration of bull markets
  • These declines can be melt-downs which are steep & vicious
  • When the melt-down comes it will likely be the biggest market crash EVER, it will be global
  • It will have an affect on every type of investment… bonds, stocks, currencies, commodities, & precious metals
  • The message is “it is time to get prepared for the melt-down”

In the interview Martin offered listeners a special rate for each of the Trend services and he especially encouraged listeners to seriously consider subscribing to Trend Technical Trader,  a premier hedging service designed to profit in a declining market. Includes our proprietary Gold Technical Indicator (GTI).  We are re-opening that offer to all readers, meaning you can subscribe now and save $250 off the regular price and pay only $399.95

 

Markets crash!

The markets crashed today and for a lot of reasons. The Fed disappointed the markets last week with its suggestion that the .25% rate cut was not likely the start of a series of cuts. Then Trump slaps a 10% tariff on another $300 billion of Chinese goods. Today, China retaliated. First, they announced that they would cease imports of US agricultural products indefinitely, and then the big one. The Chinese central bank let the Yen devalue to 7 per US dollar, the lowest level in over a decade.

As a result the markets took it on the chin. All three major US stock market indexes suffered their worst days of the year today. Both the Dow Jones Industrials and the benchmark S&P 500 index fell nearly 3%, while tech-heavy Nasdaq lost more than 3.5%.

The S&P 500 was down  87.31 or 2.98%.  Looking at the Relative Strength Index (RSI) at the bottom of the chart, we can see that the S&P has now dropped below 30 to 28.01, which is technically oversold. That doesn’t mean that it can’t go lower here, but it does suggest at least a bounce is to be expected.

The next key support level is 2750.

The big winners today were the US bonds and gold.  At the bottom of each chart we can see that based on RSI both are technically overbought, suggesting that both are due for a pullback soon.

This drop is exactly the kind of move we have been warning about. Is this the start of a big correction or even the actual melt-down? We don’t think so, but it could be and that is the message we are trying to get readers to pay attention to. Whether or not this is the start of a major correction, you need to have a plan for when the melt-down happens.

Trend Technical Trader (TTT) is a hedging service that is designed to profit during market declines, and the deeper, more severe the decline, the greater the potential gains subscribers can realize if they follow the TTT lead.  In order to allow as many readers as possible to have the tools necessary to protect themselves during the next market crash we are offering a special discount to subscribe to Technical Trader. Save $250 and pay only $399.95.

Stay tuned!

 

The $200 million ‘Climate Change’ party

The planet’s rich and famous took time out of the busy schedules to meet in Sicily to ‘talk’ about climate change and see how they can save the planet. We should all feel a great deal of gratitude that these very important people took the time to meet and  ‘talk’ about how we all should behave in order to save the planet.

While they were ‘talking’ about the serious climate change situation, it appears they are not quite ready to actually ‘practice’ what they preach. According the BBC correspondent Andrew Neil, ‘They came in 114 private jets and a flotilla of super yachts. The conference is on global warming.’

Hmm…that does seem a bit out of touch doesn’t it?

According to Page Six the cost of this Google Summit is estimated to be $20 million. The total dollar cost shouldn’t concern us, it is their money after all,  but what about the cost to the environment?  Page Six says ‘The combined carbon footprint of dozens of flights from Google’s Los Angeles base to the Verdura resort would come to around 780 tonnes of C02, although it is not clear where all the guests traveled from.’

Among those attending Camp Hypocrite? According to the Toronto Sun the list includes: Former US president Barack Obama, Prince Harry, Leonardo DiCaprio, Katy Perry, Harry Styles, Orlando Bloom, Diane von Furstenberg, Barry Diller and scores more of the great and good people.

Von Furstenberg and Diller arrived on the media mogul’s $20- million yacht Eos, featuring two 2,300-horsepower diesel engines. Perry and Bloom arrived on Dreamworks founder David Geffen’s $400-million yacht, the ‘Rising Sun’.

“Everything is about global warming, that is the major topic this year,” a source told the New York Post.

Apparently, Prince Harry flew in on a private jet and gave an impassioned barefoot speech about the need to save the planet. Omm…can’t you just feel the planet healing already?

This reminds us of the Davos Summit and the Paris Climate Accord meetings. It seems that the solution is for the rest of us to ride bicycles, while these elite climate leaders travel the world in private jets and massive yachts, solving all our climate problems.

 

Fed cuts rates, yet the US dollar soars – why?

We continue our series of publishing timely questions with our answers so that we can share with all readers. Today’s question is on the US dollar.

Q. I simply do not understand why the US dollar is rising against all other currencies even after the Fed cut rates. Can you explain? 

A. The simple answer is the US dollar is the ‘least ugly’ currency. One of the main reasons that we cover bonds, currencies, equities, commodities, and precious metals in the Trend Letter is because they are all connected. To be a successful investor you need to understand that global capital  flows out of perceived ‘unsafe’ areas and into perceived ‘safe’ areas.  Every week the Trend Letter publishes the yield on 10-year government bonds throughout the globe. We do it to help subscribers understand how bond yields can influence currencies.

Below is one of the charts we show each week. On the chart we have highlighted in red government bonds that have a negative yield. Think about that for a minute, an investor who buys one of these 10-year bonds is guaranteed to lose money every year, for ten years, until that bond matures.

According to Bloomberg there is now over $14 trillion invested in negative yielding bonds.

This is remarkable to us, as why would anyone invest in something for 10 years knowing that they are guaranteed to lose money? If you look back at the first chart we can see that the 10-year bonds in Japan (-.14%), France (-.19%), Netherlands (-.34%), Germany (-.45%), and Switzerland (-.81%) are all yielding negative returns. Then look at the US 10-year, it is paying +1.95%.

If you were an investor in Switzerland would you rather buy a Swiss government 10-year bond and be guaranteed to lose .81% every year, or buy a US 10-year government bond and gain 1.95% every year?  Global investors are taking their capital out of Switzerland, Germany, France, Japan and the Netherlands, and they are buying US bonds. In order to do that they must convert their local currency into US dollars. Below is a chart showing the currencies of these countries, and as we can plainly see the US dollar is the only currency that is in an uptrend.

 

It is not just bonds that global capital is flowing into. Foreign investors continue to move capital into the US equity markets which are outperforming global markets. Again, this means they must buy US dollars, which drives up the value of the dollar.  As the debt crisis that we keep warning about gets nearer we will see this trend intensify. When the European and Japanese bond markets implode, global investors will panic and rush to get their money out of those regions, looking for a ‘safer’ place to park their capital. The US dollar, and to some degree the Canadian dollar, will rise with this increase in demand.

Stay tuned!