Stock Market Outlook? It depends on what we invest in…..

Our forecast still projects a 25% to 30% decline from the stock market high. The major difficulty in forecasting is such low interest rates which are artificial and eventually must end. Even if a severe decline does occur, there are so many stocks today that are overlooked and incredibly undervalued; they have already suffered harsh declines.

If we look at major market cycles, the message is daunting; we probably are seeing a major top for several years in the stock market. But again, not in all stocks. So what is cheap and undervalued? In our analysis, many of the commodities and commodity stocks. Gold is cheap here as is silver. Both have been manipulated down so as to not interfere with the stock market that cannot tolerate a bull market in mining stocks. 

What is worth noting is that last week, the officers and directors of the major U.S. corporations bought approximately $14,000,000 worth of their own companies’ shares. However at the same time, these most informed of investors sold $498,000,000 worth of their own companies’ shares. That is close to  the highest dollar value of shares sold in the last two years. “Canadian Mining Stocks” ? We also want to point out there has been consistent and at times very heavy buying in the mining stocks. It may indicate that we will soon enter a market focused on “hard assets.”

We continue to accumulate the undervalued stocks; there are thousands of  them. Some are now selling at their lowest valuation levels ever. As always, very few investors will take advantage of the “sale.”  We should mention that the heavy buying by officers and directors is often a clue that the stocks that they are buying are undervalued and that has been ongoing for two years in the gold and silver mining stocks.

*PLEASE VISIT OUR AFFILIATE SITE ……   www.canadianmineanalysis.com