Valuation-based forecasting models leave little doubt that stocks are priced to deliver very poor long-term returns and the cyclical bull market from 2009 is an extreme move that will almost certainly be followed by a violent correction. [Let me explain.] Words: 701
Read More »Gold & Silver Warrants Index (GSWI) Update (+4K Views)
I read article after article on physical gold and silver, gold and silver ETFs and gold and silver mining company stocks but nary a one (other than those written by me) on the long-term warrants associated with a few of those companies. That is unfortunate because those who are in the know, and have taken advantage of the significant leverage warrants offer over any other precious metals investment alternatives, have done extremely well over the past 2 years and are positioned to achieve even greater returns on their dollars deployed here in 2011. Let me take this opportunity to enlighten you on the wonderful rewarding world of warrants. Words: 1569
Read More »Will a Black Swan Event Cause the S&P 500 to Drop by 40%? (+2K Views)
Mark Spitznagel...warned the other day that the S&P 500 could lose 40% of its value in the next couple of years. So what black swan event could cause the S&P 500 to drop down to 760? [Let's take a closer look.] Words: 856
Read More »Why the USD Index Could Fall to 65 and Gold Rise to…
At present the USD is at yet another major inflection point and what it does from here will have direct implications for U.S. investors, not only asset allocation (bonds, stocks, commodities, currencies) but also sector allocation (cyclicals, non-cyclicals). [Let's take a closer look at the situation.] Words: 2102
Read More »Higher Interest Payments on Debt = Higher Prices for Gold and Silver
Historically the price of gold rises when there’s an increasing percentage of federal revenues going to pay interest on the national debt and...declines when US interest payments move down as a percentage of federal revenues. [Given what is currently unfolding,]...the forecast for the price of gold is simply up, up and away. [Let me show you in graphic form.] Words: 451
Read More »Dow 20,000: the Latest in Hype, Happy Talk and Irrational Exuberance
Hot headlines about the Dow “storming back soon,” soaring to the “Next Stop, Dow 20,000” is nothing more than a new cycle of irrational exuberance. After losing an inflation-adjusted 20% the last decade, a prediction that the Dow will roar back 80% anytime soon is misleading, pure speculative hype. Reminds me of book titles like “Dow 36,000” and “Dow 100,000” back in 1999 - and memories of those mutual funds selling with absurd multiples over 40, with annual returns in excess of 100%. Worse than the tulip-bulb mania of the 1590s. What’s really roaring back is hype, happy talk and irrational exuberance. Words: 531
Read More »Which is Best Ratio to Use: Gold to HUI, XAU, GDX, XGD or CDNX? (+3K Views)
This article will give you a better understanding of the differences in each of the more popular gold stock indices (HUI, XAU, GDX, XGD and CDNX) and how they should be used in conjunction with the price of gold to determine the future movement of gold bullion and gold and silver mining stocks and warrants. Words: 1414
Read More »Watch Out! These Global Crises Could Potentially Derail Your Portfolio
The odds of returning [to] the gloom-and-doom scenario of 2008 is quite unlikely but [I have identified several events which could occur and derail your portfolio unless they are closely monitored. Here they are.] Words: 674
Read More »Stock Market is Due for a 15-20% Correction – Here's Why
Corporate America has been flying high since the recession, barely looking back since March 2009. The 70% rally in the S&P 500 in just under 2 years has been astounding to say the least - but are we really in 70% better shape as a nation since March 2009? No way! The dollar has continued to decrease in value, investments that feed off fear like gold and silver have soared....housing prices are still as low as in 2009, when they "crashed." The signs of a major market correction...[are] right in front of us... no one seems to notice [but I do]. I believe we could soon experience a market correction of from 15% to 20%. Let me explain why. Words: 913
Read More »Will the S&P 500 Rally or Fall Off a Cliff?
In the face of lackluster economic growth and no hopes for new stimulus anytime in the near future, the global tightening cycle may force the market back into a deflation scare. Either way, caution remains warranted in such an environment. [Let me explain further.] Words: 568
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