Big US Stocks’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

With the stock markets near a critical juncture during the most-extreme economic dislocations of our lifetimes, big US stocks’ fundamentals have never been more important.  After plummeting in a brutal stock panic on the catastrophic economic damage caused by governments’ draconian lockdowns to fight COVID-19, stocks have skyrocketed in a monster rally.  Are these gains righteous or doomed to fail?

Mid-February feels lifetimes ago, when the flagship US S&P 500 stock index (SPX) surged to a series of new all-time-record highs.  The last one at 3386.2 capped an epic secular bull that powered 400.5% higher over 11.0 years.  That proved the second-largest and first-longest in all of US stock-market history, freakishly huge.  Then COVID-19 viciously slammed the markets like a sledgehammer to the skull.

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Time To Learn About Money

By Alasdair Macleod – Re-Blogged From Gold Eagle

An unexpected destruction of fiat currency has been advanced by the monetary and fiscal response to the coronavirus. Financial markets have yet to discount the possibility of such an outcome, but in the coming months they are likely to awaken to this danger.

The question arises as to what will replace fiat currencies. In the past the answer has always been gold but today there are cryptocurrencies as well, whose enthusiasts are more aware than most of fiat money’s failings.

This article describes the basics about money, what it is and the role it plays in order to understand what will be required by the eventual replacement for fiat. It concludes that gold will return as the world’s medium of exchange, and secure cryptocurrencies, unable to provide the scalability and stability of value required of a medium of exchange will be priced in gold after the demise of fiat. But then the rationale for them will be gone, and with it their function as a store of value.

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Money Printing Is The New Mother’s Milk Of Stocks

By Michael Pento – Re-Blogged From Silver Phoenix

My friend Larry Kudlow always says that Profits are the mother’s milk of stocks. That used to be true when we had a real economy. But sadly, that is no longer factual because we now have a global equity market that is totally controlled by central banks. To prove this point, let’s look at the last few years of earnings. During the year 2018, the EPS growth for the S&P 500 was 20%; yet the S&P 500 Index was down 7% over that same time-frame.

Conversely, during 2019, the S&P 500 EPS growth was a dismal 1%; yet the Index surged by nearly 30%. What could possibly account for such a huge divergence between EPS growth and market performance? We need only to view Fed actions for the simple answer: it was the degree to which our central bank was willing to falsify asset prices.

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Barron’s Confidence Index Is Collapsing

By Mark J Lundeen – Re-Blogged From Gold Eagle

The week closed with the Dow Jones’ BEV -17.5% line of resistance holding, though on Wednesday the Dow Jones did close above this critical level, for a few hours anyway.  Friday’s close found the Dow Jones at its lows for the week.  But for the bulls out there, hope springs eternal as there is always next week.

What if the Dow Jones clears this line of resistance?  I’ll just have to find another important BEV level in the chart below to see if it’s willing to perform as a proper line of resistance, better than the BEV -17.5% level has.  What BEV level had for years provided a line of support during the bull market’s advance that can now perform as a line of resistance?

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Silver’s Epic Mean Reversion

By Adam Hamilton – Re-Blogged From Silver Phoenix

Silver is powering higher in a new bull market after getting clobbered in March’s stock panic.  Investors have been flocking back to silver in the aftermath of that ultra-rare extreme-fear event.  That brutal selloff also utterly wiped out speculators’ upside bets in silver futures, giving them massive room to buy back in.  After being pummeled to record-low levels relative to gold, an epic silver mean reversion higher is underway.

A couple weeks ago, I wrote a popular essay “Big Silver Bull Running!”.  It explained what happened to silver in this recent COVID-19 stock panic, and why silver soared in its wake.  Sucked into that blinding fear maelstrom, silver was thrashed to a miserable 10.9-year low.  This metal plummeted in a near-crash, fueled by speculators’ fastest long purge ever witnessed!  That exhausted their selling, totally resetting longs.

That meant these super-leveraged traders’ capital firepower was fully available to buy back into silver.  And much more bullish than that, strong and relentless silver investment demand emerged since that mid-March collapse.  That’s evident in the soaring silver-bullion holdings of silver’s leading exchange-traded fund, the SLV iShares Silver Trust!  This dominant silver ETF is the best daily proxy for global investment demand.

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Golden Vaccines And Dow To Gold Ratio

By GE Christenson – Re-Blogged From Gold Eagle

Things appeared normal, and then everything changed…

U.S. COVID-19 official cases on March 7: 338.

U.S. COVID-19 official cases on April 28: over 1,000,000, if you believe the Johns Hopkins numbers. Exponential growth in sickness, debt, and expenditures are “killers.”

The economic, emotional, and physical scars from the virus will torture us for a long time. Disneyland and Disneyworld are closed indefinitely.

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Central Banks And The Ponzi Scheme That Will Bankrupt The World

By Egon von Greyerz – Re-Blogged From Gold Eagle

The destiny of the world is now in the hands of 6 central banks, Fed, ECB, BoE (England), PBOC (China), BoJ (Japan), SNB (Swiss). This in itself bodes extremely badly for the global financial system. This is like putting the villains in charge of the judicial system. For decades these central banks have totally abused their power and taken control of the world monetary system for the benefit of their banker friends and in some cases their private shareholders.

The central banks have totally corrupted and destroyed the financial system, by printing money and extending credit that doesn’t exist. Everyone knows that creating money out of thin air makes the money totally worthless. These bankers know, that if you stand next to the printing press and get the money first, it does have some value before it circulates. And this is exactly what they have done. Once the money reaches the people, it devalues rapidly. As Mayer Amschel Rothschild said over 200 years ago: “Permit me to issue and control the money of a nation, and I care not who makes its laws.”

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