Friday, August 26, 2016
Buy Gold’s August Dip? Gold’s Monthly Sweet Spot In September / Commodities / Gold and Silver 2016
Gold bullion has had its biggest gains in September over the past 20 years. Seasonally gold is entering the sweet spot with the Autumn being gold’s best season and with September being gold’s best month in the last 20 years.
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Friday, August 26, 2016
The Impact of Brexit on the U.S. Economy and Gold Market / Commodities / Gold and Silver 2016
In the previous edition of the Market Overview, we analyzed briefly the consequences of Brexit vote. We stated that “the most important economic effect of the Brexit vote is so far a significant rise in uncertainty”. It applies particularly to the political future of Great Britain (Will the UK disintegrate? Will the UK really exit from the EU? When and how will it happen?) and the European Union (Will the EU break apart?). However, Brexit could also hurt the U.S. economy. This is why we would like to focus on the impact of Brexit on the U.S. economy and the gold market.
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Friday, August 26, 2016
The IMF’s Internal Audit Reveals Its Incompetence and Massive Rule Breaking / Politics / Global Financial System
To understand the sordid tale of the IMF, we need to look back at Greece. We think of Greece as the epicenter of the eurozone debt crisis, but it had company.
As the Fed’s initial QE program pushed US stocks higher, Greece’s growing budget deficit led credit agencies to downgrade its sovereign debt rating in late 2009. So, the government cut spending… but not by enough.
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Friday, August 26, 2016
Commodities Are the Best Bargain Now—Here’s What to Buy / Commodities / Investing 2016
TONY SAGAMI writes: What kind of investor are you? Are you the buy-high-sell-higher (trend continuation) type? Or are you a bargain hunter who likes beaten-down (trend reversal) opportunities?
The former type of investor is now in heaven. With the stock market at new highs, there are many stocks on fire.
But if you’re looking for bargains, the pickings are pretty slim.
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Friday, August 26, 2016
Dividend Fund Choices for Long-Term Investors / Companies / Dividends
Market Bulls writes: With global interest rates holding at historically low levels, many long-term investors are looking for new ways of generating income returns. One of the most attractive choices in the space is the Vanguard High Dividend Yield Index Fund (VHDYX), which is an open-end fund. The central aim of the fund is to track the share price and dividend performance seen in the FTSE High Dividend Yield Index, which is comprised of common stocks that offer higher dividends when compared to the sector averages.
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Friday, August 26, 2016
Stock Market Slightly Down Day with Positive Technicals / Stock-Markets / Stock Markets 2016
The stock market indices had an interesting, topsy-turvy day. They came down at the opening, rallied back to resistance, but both indices were unable to get through, and then they rolled over in a 5-wave decline to retest the lows, only to bounce in the last half hour. It was a negative close, but with positive technicals.
Net on the day, the Dow was down 33.07 at 18,448.41. The S&P 500 was down 2.97 at 2172.47. The Nasdaq 100 was down 8.06 at 4775.43.
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Friday, August 26, 2016
Why I Left Canada and Became A Citizen of the Dominican Republic / Politics / Social Issues
It took nearly ten years but this morning I was sworn in as a citizen of the Dominican Republic.
Many might ask, why would a Canadian citizen want to become a citizen of the Dominican Republic?
The answer is actually quite long and lengthy.
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Friday, August 26, 2016
The GLD vs GOLD / Commodities / Gold and Silver 2016
The case for owning precious metals has already been made. We live in a world of unprecedented and ever expanding debt, devaluing fiat currencies and negative interest rates. Even Wall Street’s heralded “Bond King”, Bill Gross, now admits the world will continue to have difficulty paying its debts without further price inflations.
Investors wisely seeking exposure to precious metals must deliberate between the convenience of buying shares of an electronically traded fund (ETF) and the ultimate security of owning physical gold and silver bullion. We tasked ourselves to take a closer look at each to understand their important distinctions.
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Friday, August 26, 2016
GDX Has Just Made a Powerful Bull Flag / Commodities / Gold and Silver Stocks 2016
The GDX daily chart below shows a powerful xyz e-wave bullish flat that is projecting to 35.42 by September 1, two trading days past the Mercury Stationary/Retrograde date of August 30. As of August 25th, GDX has closed at 27.31 off the earlier low of 26.64. A 29% increase on GDX and a nearly 90% increase on NUGT in one week seems likely based on the information on the chart from the August 25th close!
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Friday, August 26, 2016
Stock Market Is Crazy and Crazy Means Opportunity / Stock-Markets / Stock Markets 2016
The SPX has completed its’ “Broadening Topping Pattern”
…the next trend is DOWNWARDS!
The current pattern is suggesting that a significant top is at hand. I fully believe both in patterns and indicators and right now the current pattern is suggesting that a significant top is at hand.
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Friday, August 26, 2016
Could A Lithium Shortage De-Rail The Electric Car Boom? / Commodities / Lithium
We’ve gone electric, and there’s no going back at this point. Lithium is our new fuel, but like fossil fuels, the reserves we’re currently tapping into are finite—and that’s what investors can take to the bank.
You may think lithium got too popular too fast. You may suspect electric vehicles are too much buzz and not enough real future. You may, in short, be a lithium skeptic, one of many. And yet, despite this skepticism, lithium demand is rising steadily and sharply, and indications that a shortage may be looming are very real.
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Friday, August 26, 2016
Gold Futures See Massive $1.5 Billion “Non Profit” Liquidation In “One Minute” / Commodities / Gold and Silver 2016
Gold futures saw a massive $1.5 billion liquidation in one minute yesterday which had all the hallmarks of a “non profit” liquidation – a large seller trying to manipulate gold futures lower rather than maximise profits.
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Thursday, August 25, 2016
New Stock Market Downtrend Or Just More Consolidation Before Another Leg Up? / Stock-Markets / Stock Markets 2016
Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,210, and profit target at 2,050, S&P 500 index).
Our intraday outlook is bearish, and our short-term outlook is bearish. Our medium-term outlook is now neutral, following S&P 500 index breakout above last year's all-time high:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): neutral
Thursday, August 25, 2016
Brexit Effect works to Boost Diageo shares / Companies / BrExit
Alexander Bowring writes: After the referendum result was announced, Diageo CEO Ivan Menezes went on to say the decision was “better for the UK, better for Diageo and better for the Scotch whisky industry that we remain in.” This begs the question, why have Diageo’s shares risen dramatically immediately following the leave vote? Sitting at under £18 prior to the result, they jumped to almost £20 each, signalling a new high for the last 12 months.
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Thursday, August 25, 2016
Need-to-Know Tips for Safeguarding Your Precious Metals / Commodities / Gold and Silver 2016
Gold and silver investors have strong opinions about third-party storage of metals. Privacy, the lack of counterparty risk, and precious metals’ role as “crisis money” are among the most attractive features of physical bullion. So it is no surprise that many investors are totally committed to storing metals at home or someplace else that is both private and accessible 24/7.
We wholeheartedly agree with that sentiment and always recommend personal possession when it comes to at least some of your metals. However, there are a number of circumstances where third-party storage makes a heck of a lot of sense. Let’s take a look at the most common…
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Thursday, August 25, 2016
Can Stocks Survive Without Stimulus? / Stock-Markets / Stock Markets 2016
A fiery debate rages among investors over the question of central bank stimulus. The question is whether the stock market needs stimulus in order to advance, and is stimulus only creating a bubble which will burst at some point and lead to depression?
Regardless of the philosophical rectitude of central bank intervention, there can be no denying its efficacy. The most fundamental truth of the financial market is that “liquidity, liquidity, liquidity” is the market’s lifeblood. Financial stimulus contains the seeds of recovery and will cure any bear market in equities, as I’ll attempt to prove in this commentary. The truth of this assertion can be found in the very wisdom of King Solomon, who in the book of Ecclesiastes wrote that “money answers all things.” Stocks will always, without exception, respond positively to stimulus – provide there are no countervailing obstacles in the way [e.g. tax increases, margin requirements].
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Thursday, August 25, 2016
Why Putin Might Be on His Way Out / Politics / Russia
BY GEORGE FRIEDMAN : Russian President Vladimir Putin recently did three very interesting things.
First, he fired his long-time aide and chief of staff, Sergei Ivanov, and moved him to a lower position. A few weeks earlier, Putin fired at least three regional governors and replaced them with his personal bodyguards.
Removing that many governors is a bit odd. Replacing them with bodyguards is very odd. Then removing someone like Ivanov is extremely odd.
Second, Russia raised pressure on Ukraine. The Russians claimed that Ukrainian special forces attacked Russian-held Crimea. They announced that they sent S-400 anti-air missiles to Crimea. With a 250-mile range, these missiles can reach deep into Ukraine.
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Thursday, August 25, 2016
Bond Guru Gary Shilling - The Bond Market Rally of a Lifetime / Interest-Rates / US Bonds
In 1981, as inflation and Treasury yields were screaming to new heights, my good friend Gary Shilling announced, “We’re entering the bond rally of a lifetime.” He was right. That bond rally is already 35 years old, and I think it will continue.
Gary also thinks the rally is still underway. He backs up that claim with a compelling case for Treasurys and for the “long bond” (the 30 year).
Gary recalls his famous public debate on stocks versus bonds with Professor Jeremy Siegel of Wharton, in 2006. This was just before the Great Recession kicked in and sent Treasury prices sky-high. Siegel remarked to the audience, “I don’t know why anyone in their right mind would tie up their money for 30 years for a 4.75% yield” (the then-yield on the 30-year Treasury).
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Thursday, August 25, 2016
Here’s the Real Reason Behind Closer Russia-Turkey Ties / Politics / Turkey
BY GEORGE FRIEDMAN : Russian President Vladimir Putin and Turkish President Recep Tayyip Erdoğan met on Tuesday. It is not clear what came of it, but it is clear what is at stake.
Russia is weakening. The state of the economy is now the main issue (read my extensive overview of Russia’s geopolitical situation) Ukraine remains at the center of its strategic concerns. Turkey is an emerging power. It is managing its internal crisis effectively, if brutally.
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Thursday, August 25, 2016
Protectionism in 21st Century Is More Dangerous Than Most People Think / Economics / Protectionism
A monster debate has been going on in economic circles on the reasons for Brexit/Trump/Sanders and the developed world’s rejection of the status quo.
There are many explanations, but it all goes back to my thesis that the benefits of globalization have been unevenly handed out. Those who have been on the short end of the distribution curve are pushing back.
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