If we use every major gauge of  historic valuation for this stock market,  it faces what would be a normal decline of 35% to 40% from the recent top. As the old time New York Yankees manager Casey Stengel would often say…”you can look it up.” Those gauges are the total value of the stock market to Gross Domestic Product; Stock Sales by officers and directors; price to sales ratio for the overall stock market (at its’ highest ever!) among other indicators suggesting that investors take some profits and wait for cheaper buying opportunities or look for stocks that are undervalued.  Sure, for several years we have suggested that 20% plus market declines should have occurred to be followed by rallies back up. Those interim corrections would have prevented the stock market from carrying such dangerous overvaluation today and offered investors opportunties to invest when stocks are undervalued and “on sale.” Moreover, it does not help the situation that much of the business media act like bench jockeys constantly rooting the stock market up to overvalued levels yet rarely ever suggesting taking some profits.  But why do stock market periods of severe overvaluation occur? Often because the brokerage and investment industry need activity, commissions  and business volume. Those industries cannot survive on prudence, low volume and patient value investing. The activity meter must be kept running. Manipulation has fed the upmoves along with the central banks buying stocks. But that overvaluation now faces a stark reality. That reality is that […]

Posted on March 1, 2018 | By KCGrainger | No comments,   From www.Canadianmineanalysis.com We are about to commence a major bull market in Gold, Silver, mining and exploration stocks. Many of them should move up to price levels that will astonish investors. Because there is very little comprehensive research coverage for most precious metals companies, many remain overlooked and undervalued. The oncoming price moves up in the precious metals shares’ prices should be far above investor expectations. INDICATORS? If our eight indicators are correct, we are about to begin a full-fledged bull market in precious metals and many of the mining and exploration stocks. Yes, we have had an early stage bull market in some gold and commodities stocks which already carried some gold stocks up 800% and more (examples: Canadians Richmont, Claude Resources, Niogold-all taken over). NAPOLEON BONAPARTE… Napoleon Bonaparte once advised to “never interfere with an enemy when he is making a mistake.”  Some gold companies’ shareholders may be making a mistake by selling shares in stocks that they have lost patience with which is normal in a bear market. They should ask themselves “who is buying?” The mistake is that there is a very strong possibility that they are giving away undervalued stocks at very low prices. It may prove to be a big mistake as bargains occur during bear markets. When the frustrated selling shareholder says “just get me out of this stock” a value investor may say “what a great opportunity the seller and the weak metals market have given me.”  Price weakness offers value investors opportunities to invest […]