There is a major disconnect from reality. While the long term outlook for the US and the world remains dismal, the near term outlook really isn’t as bad as the media has been making it out to be. We can’t ignore numbers and forecasts – even if they are being changed week after week. Just when we thought we were in the clear for a short term rally, we get slammed with more negative forecasts and numbers. Take a look:
Crazy can’t even come close to describing what happened last week. The Dow had four 400-point swings in a row for the first time in its 115-year history. Trading was a complete sideshow all week. The yield on the 10-year Treasury note hit a record low. Gold hit $1,800 per ounce. And nearly every one of the 500 stocks in the S&P index ended down midweek.
I know US politicians have you scared. You should be. They are playing cat and mouse with the market they spent trillions to prop up. They are playing with our money and our livelihoods – all in the name of politics. So how should we invest in this market?
We had yet another down week in the markets with the S&P, Dow, and the NASDAQ all taking a slight tumble. Which leads me to ask the question, why are people still investing in those markets? Even with low P/E ratios, stocks remain volatile and the economic outlook doesn’t exactly favour stronger earnings. Retail has been soft, manufacturing has been flat, the business investment production index fell substantially, consumer sentiment is down, and the CPI rising. Stagflation anyone?
Inflation, deflation, stagflation. Lately, it seems all you hear about these days have the words “flation” at the end of it. Its either that or the printing press, QE, Bernanke, the Dollar, commodities, housing, and of course, gold…
Last week, I said gold would climb past $1500 and silver above $45 – even as analysts and the big guns at Goldman called for a strong pullback. Gold shot above $1500 and silver above $45 this week. No matter what happens in the short term, we’re going to continue to see these metals climb over a longer time span. The Dollar is in jeopardy and the gold and silver mania is really starting to begin. If you think that it’s almost over, think again…
The next big gold discovery. A catchy line considering that the world’s easy-to-mine, high grade gold is already gone or spoken for.
Because most of the high grade deposits around the world are being exhausted, investors are now looking toward finding companies with the biggest chances of new gold discoveries. In the world of resource investments, nothing has the ability to generate multi-baggers better than new discoveries. Whether its gold, silver, uranium, or oil and gas, new discoveries are what drives the market wild.
In 2010, companies making new discoveries saw the biggest climb in their share prices. That is why our goal for this year (see The Future Ahead) was to identify companies that offer above-average opportunity based on successful project advancement and development.
It’s about time the contrarians realise that the world has changed.
Gold continues to climb, closing at over $1400/oz this past Friday. And the word on the street is that this run is far from over.
That’s why later this week we will be releasing, for the first time this year, a Special Report Edition focused on a junior gold explorer. More on this in a bit.
Just before December last year, gold was climbing to yet another all time high. Now one year later, gold is still climbing and many fund managers and analysts are calling for $1500 gold in the near term.
With investors hurdling toward gold as the governments prints more money, we are reminded of a story that many gold enthusiasts may already know.
Our long time Equedia Weekly subscribers will have already heard this story before. It has become so popular amongst our readers that it is now a tradition here at Equedia for us to publish this story before the last month of the year begins.
With our strong focus on the junior resource sector, in particular precious metal stocks, it’s only fitting that we revisit this incredible story one more time.
It’s funny how the stock market works. It seems every week we have the fight of intraday bulls against the weekend selloff bears.
While scratched and bruised, neither of the beasts are winning.
As bright as the markets may look at times, there’s still a lot of economic issues that have yet to be fixed. From foreclosure troubles to unemployment, the markets remain shaky for all of the right reasons.
But have no fear…
It’s been a week that had everyone scratching their heads. We started off with a bang. Stocks climbed and commodities continued their rally from last week (see Doubling Down for the Big Bang).
The TSX hit a two-year peak, closing above 13,000 for the first time since Sept. 2008, as gold miners rallied sharply after the price of bullion powered to an all-time high of $1400. Silver also shot past $28.
But all that came to an end by Friday.