Investing

Simply because the P/E for a sector or individual stocks is high does not necessarily mean the sector or stock is overvalued. Importantly, the P/E should be compared to the earnings growth rate for each sector or company. By dividing the P/E by the earnings growth rate, one obtains the PEG ratio (PE to growth rate.) This article compares each sector’s P/Es to each sector’s PEG ratio and comments on which sectors are over and under valued.

The gold price has surged over 25% year-to-date, providing big gains in the gold sector as a whole. Companies that have generated strong earnings growth relative to total shareholders’ equity should continue to outperform the sector and entire market. To measure this, we took a look at return on equity (ROE) values and found the top 5 gold stocks with the highest ROE.

In my experience, the cup and handle chart pattern is one of the most reliable charts out there. It is a continuation/consolidation pattern that occurs after a large uptrend. This pattern is most reliable when it forms after a run of approximately 30%.

We just needed one major negative catalyst to bring the markets down and we got that in the Brexit. Obviously with the process for the UK to exit the EU possibly taking over two years of negotiating to actually happen, this will be a constant weight on the markets in Europe and on U.S. multinationals doing business there. Those who are in a high percentage of cash right now will be shooting fish in a barrel when this all gets played out.

Understanding palladium is more important than ever, because there are important correlations between the palladium/gold ratio and stock market prices and, currently, the ratio of palladium/gold ratio is giving warning signals for both the economy and the stock markets.

The average YTD total return through July 1, 2016, of the ten 2016 Dogs of the Dow equals 15.4%...compared to the Dow SPDR (NYSEARCA:DIA) and S&P 500 SPDR (NYSEARCA:SPY) returns of 4.4% and 4.0%, respectively.

I do not believe that the market will pivot higher and resume its uptrend on Monday; it could be weeks until the market develops a sustained uptrend. However, I believe that the post-Brexit decline represents a fantastic buying opportunity. Here’s why.

The U.S. Dollar has appreciated somewhat due to the recent Brexit fears, also bringing down the price of oil, but, moving forward, we believe oil prices have a clear path towards US$55-60/barrel. As such, we suggest investors take a look at the five energy-related stocks described below that also generate hefty dividend yields.

Last Friday, you witnessed exactly what happens to paper assets when people lose confidence and panic. You also witnessed a preview of what is yet to come: days of gold rallying $100, silver $1. There will be more of those days, and even in greater gains. Keep buying and personally holding physical gold and silver.

From my vantage point the judicious course right now is to reduce one's overall percentage exposure to stocks as well as one's exposure to riskier types of stocks.... Here's why.