The U.S. stock markets are trading at levels that are carrying exceptional and dangerous overvaluation. We are attempting to explain what we have seen and how we interpret it.  We have no problem with overvaluation in stocks as long as investors take advantage of it and take money off  the table. At current prices, too many stocks and sectors are extremely overvalued based upon both their fundamentals and their technical charts.  What will follow is a brutal bear market. Yet large U.S. brokerages continue to strongly recommend already overvalued stocks. Yes, we have expected corrections of 20% to 25% to occur over the last six years to be followed by rallies up. This was the normal cyclical and technical expectation from the past decades. They did not occur which would have given institutional and private investors opportunities to accumulate stocks when they are not overvalued and represent solid value. Too many stocks have been bought at the very high end of their five year price ranges. “Paying up” is always proves to be the killer. While we remain quite negative for many of the stocks in the Dow Jones Industrials, S&P 500 and Nasdaq stocks and others as well, we are near fully invested in undervalued and overlooked stocks that have been trading near their price lows. QUESTION ! Why are the stock markets trading at such high levels ? ***The major U.S.brokerages desperately need  heavy trading activity, volume and commissions so activity is forced. The industry […]

We have seen the initial stage of a bull market in gold and other hard asset commodities which beginning in 2015 has already carried some small to mid cap gold stocks up 800% and more. But the majority of mining and exploration stocks have languished. Yet at the same time experienced shrewd investors have been accumulating the mining shares. The price weakness has  offered patient value oriented investors opportunities to accumulate mining shares while they are exceptionally cheap. Keep this in mind, “He who has patience will have it all” a quote of Benjamin Franklin. Our analysis now suggests a move into the $1400 to $1500 (US Dollars) which will bring with it an enormous move up in many gold, silver and exploration stocks. Our analysis, which includes fundamental, technical  and cyclical analysis has never been this positive. Yes, the banksters may continue with their manipulation of gold bullion but that game should end soon. Bon conseil  We want to thank our mining investor friends Claude Lemire, Ray Langevin, Louis Baribeau, David Crevier , Philippe Cloutier and Peter Cashin for their advice and input, What have we waited for?  One thing is the need for a bear market in the industrial stocks which we almost require to have a bull market in gold and mining stocks. What is the one most important ingredient today for a bull market in gold?  We have said it time and again; we need a lower value in the US Dollar to have a bull market in gold. We […]