This year’s recovery in precious metals prices – and the sudden spike in gold/silver mining stocks – convinced a lot of people that a new bull market had begun. Last week’s brutal smack-down scared the hell out of many of the same folks. The latest commitment of traders (COT) report implies that we should all […]
These are great times for financial assets — and by implication for finance companies that make and sell them, right? Alas, no. Just the opposite. Each part of the FIRE (finance, insurance, real estate) economy is imploding as “modern” finance hits the wall. Interest rates, for instance, have fallen for three decades… Stock prices are […]
Last week the Fed found out what will happen if it raises rates: The global financial markets will melt down. So this morning a new member of the central bank’s seemingly endless army of talking heads said some soothing words, which stabilized the US stock prices. Now the question is when the Fed will finally […]
The world’s central banks clearly have no idea what they’re doing. Yet they keep on making threats, promises and predictions, most either nonsensical or contradictory, while acting in ways that make their countries’ problems worse rather than better. The end of their credibility is in sight.
Precious metals investors are a conflicted bunch right now. Most are happy with the recent action, and still expect rising gold and silver to send high-quality mining stocks to the moon. But most were also caught a bit off-guard by the miners’ recent spike. For every investor who loaded up on, say, First Majestic Silver […]
In normal times, some asset classes are expensive others are cheap, making it easy to use historical relationships to decide where to invest. That’s not the case today. Every major asset category, including stocks, bonds and even precious metals, are looking at best temporarily overbought by past standards, and at worst (in the case of […]
For an example of how far we’ve fallen from the old days of free-range First World entitlement, consider the fact that investment analysts are now judging companies by how well they cater to the needs of the terrified: Papa John’s upgraded on belief civil unrest is encouraging more pizza delivery (MarketWatch) – Papa John’s International […]
Brexit looked like the end of the world — until people figured out that central banks would have to ease in response. Then markets turned positively jubilant with US stocks, for example, hitting record highs. The result: A world of mounting debts, weekly terrorist attacks and even military coup attempts alongside financial assets priced for […]
Pretend, for a minute, that your country responds to the bursting of a credit bubble by borrowing unprecedented amounts of money and using it to prop up banks and construction companies. This doesn’t work, so you create record amounts of new money and push interest rates into negative territory in an attempt to devalue your […]
The following tables illustrate one of the dilemmas of mainstream money management: The vast majority of financial advisers and portfolio managers are big fans of bank stocks because finance is, in their minds, a crucial if not the crucial form of wealth-creating activity in the modern world. So the big names in the field — […]
Now the real fun begins. Last night Britons voted to leave the European Union, sending shock waves around the world — though not directly or immediately threatening the concept of European integration. But what comes next emphatically does. Emboldened by the Brits, nationalist parties across the Continent are gearing up for exit votes of their […]
Gold analyst Michael Ballanger just posted an article noting how much things have changed — perhaps for the better — in the gold market. Here’s an excerpt: Commercial Traders Have Just Gone Over the Top (24hGold) – With Friday’s Commitment of Traders Report, the ridiculous has just metastasized into the sublime as the Commercial Cretins […]
One of the oddest things in this increasingly odd world is the spread of negative interest rates everywhere but here. Why, when the dollar is generally seen as the premier safe haven currency, would Japan and much of Europe have government bonds — and some corporate bonds — trading with negative yields while arguably-safer US […]
The list of heavy hitters who are saying bad things about this world and its financial markets — while acting aggressively on their pessimism — is growing to alarming proportions. A few examples: Stan Druckenmiller: The bull market is exhausted; move to gold (MineWeb) – Legendary investor Stan Druckenmiller, founder of Duquesne Capital Management LLC, […]
John Rubino and Financial Survival Network’s Kerry Lutz on why the gold bull market has legs and how to play it. Also why Libertarians will have at least one thing to celebrate after November’s election, when California legalizes marijuana.