By Rob Williams – Re-Blogged From Newsmax
David Rosenberg, the widely cited chief economist and strategist at Gluskin Sheff & Associates Inc., said the Federal Reserve may be fueling another speculative stock bubble with loose monetary policies.
The central bank, which is undergoing a significant leadership change, may err on the side of caution by keeping interest rates too low for too long, he said in a Jan. 11 report obtained by Newsmax Finance. That would continue to give investors greater incentive to seek bigger gains in riskier assets like stocks and junk bonds.
I invest in Gold & Silver, mostly miners.
Most people, I expect, are unwilling or don’t have the temperament to put all their eggs in one basket. The most familiar of the highly liquid investments is stocks – shares of most of the companies you know and love plus many that you’ve never heard of.
But, by pretty much any objective measure, stocks are in Bubble territory today, and the FED has started a tightening cycle – and has promised major tightening leading up to the mid-term elections this November.
I suggest that you still can make money in stocks today, using a strategy that Hedge Funds originally were designed to use – buy stocks that you think have the brightest prospects and sell short stocks that likely will be dogs (by comparison). If your ‘good’ stocks indeed do better than your ‘bad’ stocks, then you’ll make money. It matters not whether they both go up, both go down, or the ‘good’ is up and the ‘bad’ down, so long as the ‘good’ does better than the ‘bad.’
By Michael Pento – Re-Blogged From PentoPort
There is a huge shock in store for those who have been lulled to sleep by a stock market that has become accustomed to no volatility and only an upward direction. And that alarm bell can be found in the price action of Bitcoin, which recently tumbled over 40% is less than a week. For the implosion within the cryptocurrency world foreshadows what will happen with the major averages as the Federal Reserve futilely attempts to stop monetizing the exploding mountain of U.S. debt.
By Matt Egan – Re-Blogged From CNNMoney
General Electric has a long history of disrupting the industrial landscape through breakthrough technologies like the jet engine and the light bulb. Today, GE is the one being disrupted.
The iconic company has been badly caught off guard by the dramatic rise of renewable energy at the expense of fossil fuels. Rapid adoption of solar and wind has created chaos in GE’s power division, which makes giant turbines and generators used by coal and natural gas power plants.
By Adam Hamilton – Re-Blogged From http://www.Zealllc.com
The US stock markets enjoyed an extraordinary surge in 2017, shattering all kinds of records. This was fueled by hopes for big tax cuts soon since Republicans regained control of the US government. But such relentless rallying has catapulted complacency, euphoria, and valuations to dangerous bull-slaying extremes. This has left today’s beloved and lofty stock markets hyper-risky, with serious selloffs looming large.
History proves that stock markets are forever cyclical, no trend lasts forever. Great bulls and bears alike eventually run their courses and give up their ghosts. Sooner or later every secular trend yields to extreme sentiment peaking, then the markets inevitably reverse. Popular greed late in bulls, and fear late in bears, ultimately hits unsustainable climaxes. All near-term buyers or sellers are sucked in, killing the trend.
By David Haggith – Re-Blogged From The Great Recession Blog
It’s not boasting to state plainly that you were right if you are equally direct about your errors. I have until now rightly predicted all of the stock market’s major downturns, starting with the one in 2007 that gave us the Great Recession. The first of those led to the writing of this blog. The next two were predicted and recorded as they happened on this blog, and the latest, whether it proves right or wrong, waits shortly in the future. Each time I made such a prediction here, I bet my blog on it. The blog is still here, but will it continue to be?