Comments on the US dollar’s move vs the Euro as well as some gold market commentary
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It should have been gold bullish…but as I said, the markets funneled most $ into stocks and real estate. When they change their views, the ongoing monetary inflation will go elsewhere, including into gold once more.
Five years on and today the B of E keeps interest rates at 0.5% for another month.
& what good has that done the country !!!!!
They said the intention was to raise rates. A lot. Is that off the table Tony or was it just an idle threat from the BoE to slow the housing bubble down?
Great commentary by the way.
Another excellent commentary, Chris.
I was especially interested in your comments regarding the eventual rotation back into the metals and mining.
I think the bear market in the miners has been so severe, that people forget the beta cuts both ways. Bull markets in the mining sector are among the most break-taking of any sub-sector within the market.
Prices have been so compressed during this cycle that the rebound could be one for the ages.
I would like to draw a comparison to something that took place during the crisis in ’08 and ’09. Many, otherwise viable, companies had their stock prices cut down to the low single digits or even sub-one-dollar. (Some of this related to the freeze-up that took place in the commercial paper market).
The stocks became something akin to beach balls being held under the water. When the tide turned, many of these stocks had epic rebounds of 1000 percent or more.
FWIW, I think that is exactly the opportunity that we have in quality junior mining stocks right now. (Obviously, selectivity is the key). But I think purchases here is very much like buying depressed stocks in ’08/’09.
Have a good day, everybody.
I agree with the caveat that, unlike ’01-’07 when things launched and darn near everything went up many times, this time around will be more discriminating.
I keep waiting for the Kitco people to show up and add a comment. They might be a shy group though!
Listenership on Kitco is pretty high. (better than 5k per editorial I believe). But you are correct on a few come over to our site. For example, so far this week only about 400. That is through about 6 p.m. pdt today.
Again the best performer in the gold sector – Pretium PVG on a blah day up 3+%
yes, that is one I am holding and it looks like it wants to break out
Pretium….yeah….never invested in that company…DONT ask me why!
Bob Quartermain, maybe the most honest , upright CEO of PRETIUM – PVG in the mining business today, whose ultimate objective is THE shareholder comes FIRST. Besides that, the quintessential takeover target in the world.
Anybody care to comment on the Russell? Besides the fact it may be the canary in the coalmine and stands to lead the whole damned market down if it does another face-plant by tomorrows close. No other market is more exposed. Like silver, it may be giving us forward insights into the sensitivity of traders emotions.
Russell Index warning:
http://www.zerohedge.com/news/2014-05-08/bofa-warns-big-trouble-small-caps-if-line-crossed
Yes, a significant percentage of the Russell 2000 components are already in bear market territory and I think it is acting as a leading indicator. Of course, on a valuation basis it is way out of whack.
Between the break down in the momo stocks and how the Russell is acting, odds favor the senior indexes following lower.
Exactly what I was thinking Eric. Shall we move the correction call to next….er….Tuesday then?
That certainly would be my thinking Eric and Bird.
Yep it could be that canary.
What they’ve been doing (US Feds) Chris these past 3 years has NOT been gold bullish….at all!
Rates to be at near 0 was Yellen’s forecast which is Gold bullish….should be testing $1300 if that’s the case not holding near the breakdown area, no?