Robert Shiller is Worried

Re-Blogged From http://reports.pmcapital.com.au

Legendary Economist Robert Shiller is Worried. Maybe You Should Be Too.

Robert Shiller, renowned economist, Yale professor and Nobel Laureate, is worried about the over-priced stock market.  So much so that he is refraining from adding to his own stock positions. One factor, among many, that he says makes him nervous is the CAPE ratio. A recent Bloomberg article notes that while the CAPE metric is still about 30 percent below its high in 2000, it shows stocks are almost as expensive now as they were on the eve of the 1929 crash. “The market is way over-priced,’’ Shiller says. “It’s not as intellectual as people would think, or as economists would have you believe.’’

What Not to Buy in Today’s Stock Market

By Vitaliy Katsenelson – Re-Blogged From IMA
Dear reader, if you are overcome with fear of missing out on the next stock market move; if you feel like you have to own stocks no matter the cost; if you tell yourself, “Stocks are expensive, but I am a long-term investor”; then consider this article a public service announcement written just for you.
Before we jump into the stock discussion, let’s quickly scan the global economic environment. The health of the European Union did not improve in 2016, and Brexit only increased the possibility of other “exits” as the structural issues that render this union dysfunctional went unfixed.
Japan’s population has not gotten any younger since the last time I wrote about it — it is still the oldest in the world. Japan’s debt pile got bigger, and it remains the most indebted developed nation (though, in all fairness, other countries are desperately trying to take that title away from it). Despite the growing debt, Japanese five-year government bonds are “paying” an interest rate of –0.10 percent. Imagine what will happen to its government’s budget when Japan has to start actually paying to borrow money commensurate with its debtor profile.

Continue reading

Markets Should Fear Central Banks More Than Trump

By Michael Pento – Re-Blogged From Pento Portfolio Strategies

Trump’s economic agenda has become further delayed by what seems like daily leaks from the White House. This may finally bring about the long-awaited equity market pullback of at least 5 percent. However, what will prove to be far more troubling than Trump’s ongoing feuds with the DOJ and the press, is the upcoming market collapse due to the removal of the bids from global central banks.

The markets have been feeding off artificial interest rates from our Federal Reserve and that of the European Central Bank and the Bank of Japan for years. In addition, the global economy has been stimulated further by a tremendous amount of new debt generated from China that was underwritten by the PBOC. After it reached the saturation point of empty cities, China is now building out its “Belt and Road Initiative” that could add trillions of dollars to the debt-fueled stimulus scheme that has been spewed out over the world-wide economy.

Continue reading

Everything Bubble: Code Red

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

The US economy and markets are now the BIGGEST BUBBLES in history.  In 2000, we experienced the Tech Bubble.  In 2008, we suffered both a Stock Market and Housing Bubble.  However, today…we are in the “EVERYTHING BUBBLE.”

This is an excellent video presentation by Mike Maloney at GoldSilver.com.  Mike puts together some of the best quality videos in the precious metals industry.  This one is a MUST SEE.  If you are frustrated with the performance of gold and silver since 2012, this video shows just how insane the markets have become.

[You can start at the 2:10 mark without losing anything. -Bob]

Continue reading

Bernanke’s Confetti Courage

By Michael Pento – Re-Blogged From http://www.gold-eagle.com

Former Fed Chairman Ben Bernanke’s book titled “The Courage to Act” is now available in paperback. This isn’t a surprise because, after all, his proclivity to print paper encompasses the totality of what his courage to act was all about. The errors in logic made in his book are too numerous to tackle in this commentary; so I’ll just debunk a few of the worst.

Bernanke claimed on one of his book tour stints that the economy can no longer grow above a 3% rate due to systemic productivity and demographic limitations. But his misdiagnosis stems from a refusal to ignore the millions of fallow workers outside of the labor force that would like to work if given the opportunity to earn a living wage. Mr. Bernanke also fails to recognize the surge of productivity from the American private sector that would emerge after the economy was allowed to undergo a healthy and natural deleveraging cycle.

Continue reading

Gold Miners’ Q1’17 Fundamentals

By Adam Hamilton – Re-Blogged From www.Gold-Eagle.com

The gold miners’ stocks have been slammed by a sharp gold pullback in recent weeks, spawning today’s bearish sentiment.  Traders often get caught up in the emotional swings generated by this volatile sector.  But once a quarter earnings season arrives, revealing gold mining’s hard fundamental realities which dispel the obscuring sentiment fogs.  The major gold miners’ profitability actually just exploded higher in Q1!

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Companies trading in the States are required to file 10-Qs with the US Securities and Exchange Commission by 45 calendar days after quarter-ends.  Canadian companies have similar requirements.  Some companies in other countries with half-year reporting instead of quarterly even follow suit.

So the world’s major gold miners are just wrapping up their first-quarter earnings season.  After spending decades intensely studying and actively trading this contrarian sector, there’s no gold-stock data I look forward to more than the miners’ quarterly financial and operational reports.  They offer a true and clear snapshot of what’s really going on, shattering the misconceptions bred by the ever-shifting winds of sentiment.

Continue reading

The Case Of The Missing US Stocks

By Frank Holmes – Re-Blogged From http://www.Gold-Eagle.com

In the last 20 years, the U.S. stock market has undergone an alarming change that too few people are aware of or talking about. Between 1996 and 2016, the number of listed companies fell by half, from 7,300 to 3,600, according to a recent report by Credit Suisse. This occurred despite the U.S. economy growing nearly 60 percent over the same period.

Continue reading