Gold trades inversely to real interest rates, the opportunity cost of holding the metal over cash/short-term bonds.Real interest rates have peaked and are trending lower.The best scenario for gold is a situation of lower interest rates and rising inflation, thus lower real interest rates.A Regime Change For Gold Over the past several weeks, there has been a regime change for the price of gold whic...Read More
Activision stock is down on layoff reports expected to affect hundreds of employees The shares of Activision Blizzard, Inc. (NASDAQ:ATVI) are down 5% at $41.23 in early market trading after Bloomberg reported that the video game giant is planning on announcing a round of layoffs. The cuts -- which could potentially affect hundreds of employees -- are a response to a slowdown in sales and an attemp...Read More
The options market is pricing in a giant earnings move for UAA Under Armour Inc (NYSE:UAA) stock jumped 27.7% the day after earnings back in October, part of its streak of four consecutive quarters of post-earnings gains, including a 17.4% pop this quarter last year. The shares will try to keep the ball rolling following the company's earnings release tomorrow morning, and the options market is pr...Read More
Is it time to prepare for the next financial crisis?Something strange is going on in the financial system.And according to The Wall Street Journal, it's causing some investors- including the biggest banks in the world- to move massive amounts of money out of the banking system.What exactly is going on?Former hedge fund manager, Dr. Steve Sjuggerud, one of the most widely-followed financial analys...Read More
In my article last month on Barrick Gold, I discussed how the early January sell-off was expected, and it was a great opportunity to rebuy. Since then, the stock has returned 15%.The catalyst for GOLD will continue to be the rapid reduction in net debt as well as the exceptional cash flow generation from its portfolio of high-margin gold assets.We have two important price levels to watch, and the...Read More
Tesla stock is higher after an upgrade to "buy"Dow Jones Industrial Average (DJI) futures are signaling again out of the gate, as the trade-related pessimism that plagued stocks last week has abated.Advisors to President Donald Trump have reportedly talked about a mid-March meeting with Chinese President Xi Jinping, after last week Trump said a meeting between the two leaders likely wouldn't happe...Read More
Forecasts, Commentary & Analysis on the Economy and Precious MetalsCelebrating our 46th year in the gold business"Who on earth, or in global finance, will buy this looming mountain of Treasuries?""Investment in gold now is insurance. It's not for short-term gain, but for long-term protection. I view gold as the primary global currency. It is the only currency, along with silver, that does not re...Read More
StrengthsThe best performing metal this week was palladium, up 3.63 percent as hedge funds boosted the net-long position to the most bullish in five weeks, CFTC data showed for early January. Gold traders and analysts remain bullish on the yellow metal for the 13th straight week, even as gold fell on a stronger dollar and weaker demand from Asia during Lunar New Year, according to the weekly Blo...Read More
By: David HaggithAs happened with the first housing market crash that began in 2007 but didn't become widely recognized until mid-2008, the present housing crisis began exploding one story at a time last summer, and this blog was perhaps the first to state that summer's change was the turning point from decades of ascent into a collapse in housing sales and prices. I said the same thing back in...Read More
Loop Capital also targeted 22% downside for BBBY stockLoop Capital downgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) to "sell" from "hold," and cut its price target to $12 from $13. The brokerage firm called BBBY stock's recent gains "unwarranted," and said the home goods retailer's 2019 fiscal guidance is "unrealistic." Further, Loop Capital noted, "BBBY shareholders are unlikely to be 'bailed out...Read More
By: Keith Weiner, Monetary MetalsLast week, in part I of this essay, we discussed why a central planner cannot know the right interest rate. Central planner's macroeconomic aggregate measures like GDP are blind to the problem of capital consumption, including especially capital consumption caused by the central plan itself. GDP has an intrinsic bias towards consumption, and makes no distincti...Read More
The rally that powered stocks to record January gains went flat last week, but for a bullish reason: sustainability. DaBoyz are in no rush to foster the illusion that new record highs are possible. Accordingly, they have adopted a go-slow approach that the news media and investors can literally buy into. Keep in mind that if the Masters of the Universe are very successful in keeping this decepti...Read More
Vancouver-based Kenadyr Mining (TSX-V: KEN) announced today that it has entered into a non-binding letter of intent in connection with a proposed option and joint venture agreement with Gold Mountains Asset Management in respect of the Borubai gold project, located in the Kyrgyz Republic in Central Asia.In a press release, the miner explained that the plan is to grant Gold Mountains an exclusive o...Read More
Manganese ore prices increased over the past week when producers raised their offer prices while market participants in China were celebrating the Lunar New Year holiday. Low-grade ore prices tick upward High-grade ore prices weaken slightly Manganese alloy prices hold in India, Europe US alloy prices soften despite uptick in SiMn activity.Manganese ore prices rose on Friday February 8 because of...Read More
Boeing stock tends to outperform after government shutdowns, tooThe shares of Boeing Co (NYSE:BA) are up 1% in electronic trading, ahead of a critical week of trade talks between the U.S. and China. Also fueling the fire is a bull note from J.P. Morgan Securities, which upped its price target on the aerospace giant to $450 from $425, an 11% premium to Friday's closing perch of $404.91 and standin...Read More
There's still a chance analysts could raise their price targets on TWLO sharesCloud communications specialist Twilio Inc (NYSE:TWLO) has seen its stock outperform over the past year in a big way, rising from around $25 this time last year to Friday's close of $114.78, holding just below the Feb. 5 record high of $116.54. The company is preparing to report earnings after the close tomorrow, Feb. 12...Read More
We finally saw positive North American inflows into equities last weekBears jumped on last Thursday's news that a trade deal with China was doubtful before the March 1 deadline -- with the White House later confirming that it would be highly unlikely that President Donald Trump and President Xi Jinping could meet to hammer out the final details before the deadline. The news happened to coincide wi...Read More
Zinc's three-month price on the London Metal Exchange fell at the close of trading on Monday February 11, hampered by broad strength in the dollar index while low LME inventories failed to limit downward price action. The three-month zinc price has also fallen by 6% since reaching a July 2018 high of $2,800 per tonne last week. Since then, open interest in zinc has dwindled by more than 11% from a...Read More
How you can transform lagging indicators into leading indicators.Despite the strong January kick-start to 2019, many investors are still apprehensive of what's to come, especially considering some of the latest market-moving events -- think Fed policy announcements, U.S.-China trade negotiations, and earnings season, to start.While it's certainly no crystal ball, becoming familiar with the various...Read More
Full Article: FED CRUMPLES - and SEALS THE DOLLAR'S FATE..By: Clive MaundThe Fed didn't just fold on Wednesday, it crumpled, capitulated. A long time ago we had figured out that when push came to shove, this is what it would do. However, we thought that it would take a market crash to force it to change course, in order that it could use that as solid justification for a U-turn, instead of which...Read More