The relative strength of the primary U.S. benchmarks — the Dow Industrials and the S&P 500 — distorts the true picture for risk assets today. In fact, we do not even need to look closely to see the cracks all along the wall. For example, the most important metal to the world’s economy appears destined for [...] Continue Reading...
According to Steven Russolillo at WSJ.com, Goldman Sachs advises investors to short gold. Granted, the yellow metal has experienced a brutal downtrend that has lasted 6 arduous months. What’s more, you may not be able to find an uglier chart on a major asset class than the one for SPDR Gold Trust Shares (GLD). If there’s [...] Continue Reading...
Eighteen months ago, Jim Rogers explained that “everybody is having a wonderful time running the printing presses.” His answer? Protect yourself by owning real assets. In fact, the popular investing guru has publicly denounced equities for years while simultaneously expressing a preference for precious metals and agricultural commodities. Whenever you listen to Mr. Rogers, you may [...] Continue Reading...
The warning signs for a stock market pullback are everywhere. Historically, a 17% move over 17 weeks (sans correction) is not only substantive in size, it may be “long in the tooth.” What’s more, the ultra-low levels on the CBOE S&P 500 Volatility Index (VIX) demonstrate complacency. Seasonal patterns are another concern. Specifically, a wide variety [...] Continue Reading...
With S&P 500 stocks approaching all-time highs daily, it may be more instructive to look at potential hedges and “diversifiers.” Here are 3 ETFs that are less likely to receive accolades when investors are smitten with Google (GOOG) and Gilead (GILD). 1. iShares Silver Trust (SLV). Over the last year, SLV has served as a fine [...] Continue Reading...
Media outlets continue pressing the notion that new cash is entering the stock market from the sidelines. And for the most part, this may be an accurate depiction. Anecdotally, many of my risk-averse money management clients have asked me to move them up from “ultra-conservative” to “moderately conservative.” Similarly, a number of traditional “moderates” are asking [...] Continue Reading...
Daily sentiment can change on a “Susan B. Anthony.” For instance, in the time that Prime Minister Mario Monti has held the reins of control in Italy, global markets have felt better about the prospect of the European Union holding itself together. At the start of Monday’s trading, in fact, stock assets around the world [...] Continue Reading...
Few seem to care about the potential for monstrous declines when stock assets are within a few percentage points of all-time highs. In fact, it becomes increasingly difficult for an objective observer to see the investment environment as it is… rather than through magenta-colored glasses. At times like these, bears go into hibernation. Meanwhile, bulls present [...] Continue Reading...
Investing in stock assets when the S&P 500 is hitting fresh highs can be as dangerous as driving on a yet-to-be-plowed stretch of highway. You may get to your destination without a hitch. Then again, you might spin out of control and crash. At present, both the Eurozone’s ongoing recession and “Snowmageddon” on the East Coast [...] Continue Reading...
Las Vegas odds-makers believe that the San Francisco 49ers will beat the Baltimore Ravens to win Superbowl XLVII this Sunday, February 3. That’s what is implied by a 4-point spread. In contrast, if the professionals did not feel that the 49ers had a definitive edge, there would neither be a spread nor a so-called “favorite.” And [...] Continue Reading...
