Maybe we can get someone to listen to some sense instead of all that non-sense coming from here there and everywhere???? Exactly one year ago, January 05th, 2017 the Dow Jones Industrial Averages stood at 19,963 and today, January 05th, 2018 those averages stand at 25,121, That’s a 5,153 point INCREASE or a rise of….25.8% (TWENTY-FIVE POINT EIGHT PER CENT)
From our affiliate site www.Canadianmineanalysis.com If you examine the technical chart for the U.S. dollar, it suggests a further decline ahead. In a fundamental report last July, the “IMF’s External Sector Report” estimated that the U.S. Dollar was approximately 15% overvalued putting it second only to the Saudi Riyal in overvaluation. So above all else, monitor closely the value of the U.S. Dollar and its trend.
Hugo Salinas Price, long a proponent of silver as sound money – via the issuance of the silver Mexican Libertad, has this to say about the cryptocurrency: “The Bitcoin has no history, which is the essential element which makes all digital currencies acceptable, utterly false though they are. The Bitcoin is simply a childish distraction for a childlike world population incapable of discerning falsity, much to the satisfaction of all the crooks, big and small, who prosper by scamming the public. “I remit to Von Mises, who stated that no fiat currency has ever been successfully introduced into circulation without a monetary value ultimately derived from when that currency was gold or silver money. Bitcoin does not fill the bill; it cannot circulate along with the established fiat currencies of the world because it has no history, no ancestry reaching back to its parent, gold or silver.” Mr. Salinas Price is an enormously successful business leader in the U.S. and Mexico
Insider selling hits over $2 Billion in four weeks We have monitored the buy and sell activities of the officers and directors of the major U.S companies since 1990. I must point out that the SEC reported filings of insider buys and sells of their own companies’ shares over the last four weeks have hit a total of over $2,000,000,000 in dollar value ($2 Billion dollars). That is the highest total for a four week period that we have ever seen…..ever!
Adviser says “Gold Manipulation is simply nonsense”…He said that? A couple of months ago on a highly respected Canadian commodity investment site, a pompous and obviously naïve “expert “stated that any thought of “gold manipulation is simply nonsense.” Really? We have received many comments on the view of this commodities “adviser.” Some very successful and experienced gold and mining people were rather surprised by his term “nonsense.” Nonsense is it? Just review how recent gold commodities market trades were executed. By the way, we consider the expert to be mediocre at best and rarely found any value in his advice. The point is that those large commodities “paper” sales have been done to generate an overall image of weakness in the gold market. SO IT”S NONSENSE? JUST TAKE A LOOK AT THE TRADES For example on November 10, 2017 a total of 30,000 commodity futures contracts in gold were sold in minutes. If converted into gold bullion, that would be equal to approximately 4000 tonnes which is more that the entire world’s annual gold production. The trades were done apparently at “market” and not “limit” and were effective in causing the price of gold (in paper) to plunge which is what we feel they were designed to do. Let’s fast forward to last Friday November 18, 2017 when the sales of 15,000 commodities gold contracts were executed within two minutes; it was “notional” which means that it was paper contracts representing gold and not the gold bullion itself. Friday’s sale would be equal […]
LATEST WEEK SHOWS:.….. $620 MILLION OF INSIDER SELLING in U.S dollar value with slightly under $17 MILLION OF INSIDER BUYING of U.S. traded stocks. This confirms what we had reported here last week. That $620 million in sells ranks among the highest amount ever in one week. Companies do not enjoy seeing their insider sells reported. When was the last time you saw insider selling reported in a brokerage recommendation? LAST WEEK’S MONTREALANALYST.COM REPORT: OFFICERS AND DIRECTORS HEAVY SELLING. Moreover, examine yourself what the officers and directors of many of these companies are doing with their own personally held shares; you will find that they are selling heavily with very little buying! Recent months have seen the largest amount of officers and directors selling their own personally owned shares in history. *** Note that we are not suggesting that these “most informed of investors” (they work at these companies) are dumping all they own. They are obviously taking some money off the table as they do see risk. The public and the U.S. brokerage industry pay little attention to insider activity. Years ago on a national television call in segment, I mentioned that insiders at an American company had been heavy sellers; two days later I was threatened with a lawsuit for defamation among other things. As they had been verified sellers, I was advised by lawyers to tell them to %&^*#%*. I cannot print the exact words here as this is a family column.
IT DEPENDS WHAT STOCKS…Note that we are always fully invested in common stocks that our research finds to be undervalued. We are not “perma- bears” nor short sellers. We often find stocks that are exceptionally undervalued. But today, too many popular and heavily recommended stocks are selling at high valuation levels that will not be able to withstand bad news when it comes. Yet, as always there are numerous Canadian and American companies’ stocks that are overlooked and undervalued which offer the potential for exceptional capital gains. We favor gold and commodities related companies as the risk reward ratio of the industrial stock market (Dow and S&P stocks) is historically high. DID YOU KNOW?… Reliable old line gauges of value show significant undervaluation in many stocks. Yet those stocks are not covered nor recommended by most major brokerage houses. Their brokers are not permitted to recommend stocks that are not followed by their own research departments. We should add that although we find most U.S brokerage research is generally of low quality, it is expensive to commit research coverage on stocks. CYCLES…Several major important cycles are occurring now (at the same time almost simultaneously) that are forecasting a brutal bear market and a very poor economy. The cycles may be the most important factor we face. MAJOR POINT… Our research (which includes fundamental analysis, technical analysis and cyclical analysis) indicates we are in the early stages of a bull market in many commodities. That is an ominous warning that the […]
There is increasing nervousness about the end game for the Federal Reserve’s ultra-accommodative monetary policy. The speed of both interest rate rises and the unwinding of quantitative easing are closely watched topics. Yet some observers may not realise that substantial shifts have already begun because they have been obscured by “headline numbers” that remain unchanged. Looking back, U.S. Treasury securities of all maturities held by the Federal Reserve as assets rose in three stages from about $500 billion in 2008 to $2,465 billion in 2014 where they have remained ever since. On the surface, other than a little rate tinkering, little has changed for three years. However, this ignores the evolving term structure or maturity profile of the Federal Reserve’s holdings which has been getting shorter since 2015. During 2013 and 2014, the Fed held no U.S. Treasury securities maturing between 91 days to 1 year, none. Starting in 2015, the Fed began to acquire T-bills and other short dated Treasury securities and now holds $322 billion worth. Given that the total of all maturities remains unchanged, this shift means that the Federal Reserve has trimmed its bond holdings in favour of adding a good and rapidly rising money market position. Now, like any investor holding cash or near-cash, the Fed has new open market flexibility. Aside from the obvious implication that the Federal Reserve has started an orderly retreat from continuously supporting the bond market and suppressing long term interest rates which […]
What is New on the Macro Level? by Hubert Marleau of Palos Management, Montreal Put simply, Interest Rates Differentials (IRD) between Canada and the U.S. are basically flat. Their outlook for economic growth is similar and North American inflation is destined to converge toward the 2% target. Thus, the path of monetary policy between Canada and the U.S. should be identical. Based on these observations, the exchange value of the Canadian dollar should revert back to our calculated Canadian Purchasing Power Parity (PPPR) of 78.5 US cents. Unfortunately, the calculation is not independent of risks like the price of oil, NAFTA negotiations and the unhealthy financial conditions of Canadian households. Should the price of oil fall below its marginal cost of production, which is around $55 a barrel, the NAFTA negotiations conclude in a negative manner, or indebted households stop spending, the Loonie could become subject to a negative reversal of fortunes. Barring these low probability outcomes, the Bank of Canada will likely be the major driver behind the future performance of the Loonie. In this connection, the odds of an October or December rate hike are low. Mr. Poloz is likely to ease up and embrace a more cautious approach. A few days ago, he said that “there is no predetermined path for interest rates from here”. It confirms the belief that from here on out, the tightening will be gradual and slow and, in turn, follow the decisions of the Federal Reserve Bank. Recent economic […]
In 2000 or 2001, I was working in Montreal and a gentleman from Europe told me that Central banks such as the U.S Federal Reserve had been buying common stocks to support the stock markets. He said that he had seen it first hand while working as a trader in Europe. I had no reason to doubt him. It is well known that the Central Banks have been large buyers of bonds and are the world’s largest purchasers of gold bullion for years……so why not common stocks? What could be better to keep the stock markets up and prevent bear markets? Or could it? We will see and perhaps very soon.
