Beware The Young Bear!

By Adam Hamilton – Re-Blogged From Gold Eagle

Stock markets are forever cyclical, an endless series of alternating bulls and bears. And after one of the greatest bulls in US history, odds are a young bear is now gathering steam. It is being fueled by record Fed tightening, bubble valuations, trade wars, and mounting political turmoil. Bears are dangerous events driving catastrophic losses for buy-and-hold investors. Different strategies are necessary to thrive in them.

This major inflection shift from exceptional secular bull to likely young bear is new. By late September, the flagship US S&P 500 broad-market stock index (SPX) had soared 333.2% higher over 9.54 years in a mighty bull. That ranked as the 2nd-largest and 1st-longest in US stock-market history! At those recent all-time record highs, investors were ecstatic. They euphorically assumed that bull-run would persist for years.

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Has This Become A “Short Everything In Sight” Market?

By John Rubino – Re-Blogged From Dollar Collapse

One of the strangest things about this strangest-ever expansion has been the way pretty much everything went up. Stocks, bonds, real estate, art, oil – some of which have historically negative correlations with others — all rose more-or-less in lock-step. And within asset classes, the big names behaved the same way, rising regardless of their relative valuation.

This seemingly indiscriminate buying created a paradise for index funds that simply accumulate representative assets in their chosen sectors. And it made life a nightmare for the higher-order strategies of hedge funds that get paid to beat the market.

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Things Are Lining Up Nicely For Gold And Silver

By John Rubino – Re-Blogged From http://www.Gold-Eagle.com

Beginning in early Spring, gold and silver faced two serious headwinds: Seasonality – that is, the annual decline in bullion demand from China and India once wedding season ends – and the internal structure of the futures markets, where the big players in gold had lined up in ways that historically point towards weak prices for a while.

Both of these negatives are still in place (hence the smack-down of the past week) but both are transitioning to positive. At some point soon, the precious metals environment will lose the headwinds and gain at least two strong tailwinds.

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Stock Markets Hyper-Risky 3

By Adam Hamilton – Re-Blogged From http://www.Silver-Phoenix500.com

The lofty US stock markets remain riddled with euphoria and complacency, fueled by an exceptional bull. Investors believe downside risks are trivial, despite long years of epic central-bank easing catapulting valuations to dangerous bull-slaying extremes. This has left today’s markets hyper-risky, with a massive bear looming as the Fed and ECB increasingly slow and reverse their easy-money policies. Caveat emptor!

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Waiting For The Next Big Thing

By Mark J Lundeen – Re-Blogged From http://www.Gold-Eagle.com

The Dow Jones Index was up for the week with its BEV plot below closing above its -10% line. Nothing wrong with that as it enters its third month correcting from its last all-time high of 26,616 of January 26th. As double digit corrections go, this one has been a fairly wimpy one – so far. The Dow Jones’ last correction occurred from May 2015 to July 2016 (fourteen months); twice the Dow Jones dipped below its -12.5% line in the BEV chart below, or 16,000 points on a point chart in August 2015 and again in February 2016. Since then the Dow Jones has put two years and 10,000 points behind it.

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Chaos is the Only Way Out

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

The prevailing fiction pervading Wall Street right now is that economic growth is picking up in a sustainable fashion and that interest rates will merely rise slowly. Then, soon level off at historically low levels. In other words, they are selling a fairytale; and a dangerous one at that.

This premise is blatantly false. The Fed’s reverse QE program, Government debt levels and Nominal Gross Domestic Product, all dictate that the 10-year Note Yield should be now swiftly on its way to at least 4.5%, from the artificial level of 1.4% found in July of 2016.

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Complacency Reigns Supreme

By Burt Coons (PLUNGER) – Re-Blogged From Rambus Chartology

I had intended to post part III of my interest rate series, however market conditions dictate that I post views on the current market.  This market is now communicating that it is at high risk.  For two months now,  I have been advocating a strategic retreat.  Head for the sidelines and watch the action with an unemotional detachment.  The market is now sounding the alarm and one should be on high alert for a downside acceleration.

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