Equities Within A (HYPER) Inflationary Spiral

By Michael Ballanger – Re-Blogged From http://www.Silver-Phoenix500.com

Before I launch into one of my classic, bitter, vitriolic diatribes against all forms of modern-day interventionalist-type, fraudulent excuses for what use to be “free markets,” have a gander at the chart below. Pay particular attention to the smiles on all of those beaming faces. . .

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Bubble Stock Investing

  By Bob Shapiro
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.’
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Warning Signs of a Market Top

By Rob Williams – Re-Blogged From Newsmax

Stocks this year have surged to record highs on speculation that President Trump’s push for tax reform will help to boost the economy and give corporations a chance to reward shareholders with dividends and buybacks.

But the strong gains shouldn’t distract investors from some worrisome signs that portend of a market decline, Albert Edwards, global strategist at Societe Generale, said in a Nov. 15 report.

“Investors are beginning to punish the corporate debt and equity of highly indebted U.S. companies,” Edwards said. “Excess U.S. corporate debt is probably the key area of vulnerability that could bring down the QE-inflated pyramid scheme that the central banks have created.”

Image: Albert Edwards: Watch Warning Signs of a Market Top
Albert Edwards (Societe Generale/Dollar Photo Club)

Gold Investment Stalled

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

Gold has largely been drifting sideways for the better part of a couple months now, sapping enthusiasm. Gold investment demand has stalled due to extreme stock-market euphoria. Investors aren’t interested in alternative investments led by gold when stocks seemingly do nothing but rally indefinitely. But once stock-market volatility inevitably returns, so will gold investment demand which fuels major gold uplegs.

Like nearly everything else in the global markets, gold prices are heavily dependent on investment capital flows. When investors are buying gold in a meaningful way, demand exceeds supply which drives gold’s price higher. When they’re materially selling, supply trumps demand thus gold’s price naturally retreats. The past couple months have been stuck in the middle, with gold investment flows neutral on balance.

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Oil Prices and Oil Stock Prices

   By Bob Shapiro

I see in the commodities markets that the price of oil has gotten into the mid 50s, after spending years it seems in the 40-50 Dollar range. Prices always fluctuate, but this uptick at least bears watching.

As with many resources, oil exploration and development takes years, so once the decision is made, the cost to produce oil from any particular well or oil field are known. Yes, costs also fluctuate for oil production, but in a very narrow band. So, what happens when prices fluctuate is that it is magnified when the bottom line is calculated.

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Investor Optimism Highest Since Crash of ’87

By Rob Williams – Re-Blogged From Newsmax

The stock market’s seemingly unstoppable rise to record highs has boosted investor optimism to levels not seen since the Crash of ’87 – a very worrisome sign.

The difference between bulls and bears hasn’t been this high in 30 years, according to Investors Intelligence. The last time investor sentiment was this far apart, stocks rallied – until they didn’t. The Dow Jones Industrial Average collapsed 22 percent on Oct. 19, 1987, the worst one-day selloff in history.

Euphoria is a dangerous stage in the market cycle — when investors feel invulnerable and start to overpay for stocks. They become complacent with the expectation that they can sell their stocks to a “bigger sucker.”

Image: Survey: Investor Optimism Highest Since Crash of '87
(Dreamstime)