Originally posted on October 9, 2015 on Canadianmineanalysis.com There certainly can be value; we get that question all the time. If a gold exploration common stock is selling at pennies, investors ask as to “how can there be any value in that stock?” The answer is that there can be exceptional value in many stocks selling for near a “nickel” or less. Many exploration companies and “juniors” are remarkably undervalued based on the basis of what they own in mineral reserves and resources as well as later earnings potential basis. Moreover, one can find many companies including junior exploration companies with large cash positions. Suffice it to say, it depends on what a gold company has or can find efficiently. We should also mention that the major brokerage houses in North America do not want to see a bull market in gold or the commodities markets. History shows that when there is a bull market in commodities at the same time you cannot have a bull market in the industrial stocks such as the Dow Jones Industrials.

Some investors and above all major brokerage houses have little use and contempt for “technical analysis” and even greater dislike for cyclical analysis. Why? It often tells people what they don’t want to hear such as the stock market is overvalued headed down or worse yet that their own stocks are overvalued and heading for large declines. Brokerage houses do not want technical analysis because it advises at times that stocks are overvalued and better buying opportunities will happen later! Waiting entails no business in the meantime…so read between the lines.Our view remains the same, an overall  decline in the 25% to 30% range for the Standard and Poor’s 500, some stocks more, some stocks less. We will attempt to inform you when the decline is over, for years we were quite good at it. The weight of the evidence has been overwhelming that a major decline was coming. LOOK BACK AT WHAT WE HAVE WRITTEN ON THIS SITE FOR THE LAST YEAR…..Major distribution (topping process) has been ongoing; but keep in mind that it badly interferes with some peoples’ business to alert the public; so the public is not alerted……until after the fact with excuses! The promoters and major brokerage houses have promoted and enabled the stock market to hit EXTREMELY OVERVALUED PRICE LEVELS. THEY NEVER INFORMED INVESTORS THAT OFFICERS AND DIRECTORS OF THE PUBLICLY TRADED CORPORATIONS WERE SELLING THEIR OWN PERSONALLY OWNED SHARES AT NEAR RECORD HIGH RATES. Some weeks in 2015 saw the officers and directors selling […]

Disequilibria and risk from the international economy In 2016 we find two conditions present that put markets at risk. One is that policymakers have the wrong model of how the world works. In plying policy under misunderstood conditions markets will be at risk.

If we look back at athletic stars of the past, we often find some very interesting and educational  anecdotal stories. Unlike most people, professional athletes’ lives involve constant traveling and meeting people in all professions. One interesting story was told to me by Arthur Mercante, the famous boxing referee and member of the Boxing Hall of Fame. The story was funny but quite profound as well.