The markets once again had a volatile week. To be completely blunt, I am getting very tired of the news, the stock market, and the same old political blunders plaguing our future. For those of you who have been long time readers of the Equedia Letter, you know exactly where I stand…
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.