The Fed is trying to talk down the markets
Click download link to listen on this device: Download Show
Below are the links Chris recommends we all listen to.
http://video.cnbc.com/gallery/?video=3000309118
Bird, I personally am very concerned!
Bird…..Word of advice…short the dollar , make some money.
You are talking to the wrong guy. I am long dollars and not shy about it. That has been good to me all around. There are more forces keeping the dollar strong than there are weaknesses that will take it down over the next few years. Gold will not get much traction in this kind of environment.
Don’t get too smug, Birdman…you’re almost sounding as rigid about your dollar view as some of the more religious gold bug yahoos. Among other things, keep in mind that, if you go back to 2005 when gold was up around $450 or so an ounce, the US $ Index was around 80. Now that US $ Index is a bit higher after this rally…yet gold is about 3X what it was then.
Yes, sometimes they still do move inversely; but not always. Depends on the circumstances. Gold and the US $ moved up together strongly for months at times back in 2010 and 2011, when the fears over the euro were about its very existence. That could come back soon, together with, finally, a more meaningful break for equities. Unlike 2008, this time around gold might do much better, given that, unlike 2008, there are virtually no cheap dollar-fueled leveraged trades in IT that would need to be unwound.
Food for thought.
Don’t forget, too that — despite the FOMC trying to scare the markets into a touch of sobriety by occasionally saying “BOO!” — we may not be all that far from a realization that deteriorating US economy will take some of the steam out of the $ when folks realize that, for all its talk and mind games, the Fed really won’t end up DOING much of anything.
repeat from yesterday…
Young buck stock brokers are taught one thing – it’s always a good time to be in the market.
This is the one thing drilled into their heads – their clients must be in the market.
It doesn’t matter if it is a bull market or a bear market, they must get you in the market.
And why is that?
Think about it.
If stocks go up and your broker kept you out of the market, you would not be happy with him at all, as you lost an opportunity to make profits.
There’s few things people hate more than watching all their friends make money while you didn’t.
Now the flip side…If stocks go down and your broker kept you out of the market, you would be content, but you would still have your money, not your broker.
Also the feeling of not making money when you could have is stronger than the feeling of keeping money. So it is a lose lose proposition for your broker.
Hence the siren call is always and everywhere “It”s a great time to buy!”
Bull market – “You have to be in to make money!, stocks are going up!” They scream.
Bear market – ” There’s value in the market, now is the time to buy! They scream.
Same old story.
Now where I once thought this scam was limited to stock brokers I now realize it applies to all shills and cheerleaders whatever they are pushing.
Stocks, real estate, gold.
Doesn’t matter. It’s always a good time to buy!
I wish it were true
It is not a good time to buy gold, hasn’t been for 5 years, might not be for another 5 years.
Swallow that pill
james the ..L.. I think you are totally wrong.
The FED got exactly what they wanted.
To say it is in their heart of hearts to remove the froth from the markets is ludicrous.
Lets get some more energy experts and talks about the future of energy prices on the show Al! Thanks!
Energy? if you believe the fracking story then the U.S. will win in spite of ourselves.
It might even be said that this was the game changer for gold.
I pointed this out many months ago.
the markets are forward looking, and sometimes very forward looking.
isnt any coincidence that gold has been falling for 3 years as the shale boon took off?
This could be the paridigm shift that catches most people off guard
Shale is a scam……….
Even Bob Pisani on CNBC today had to warn that the recent drop in oil’s price has brought a lot of new shale production to where it will lose money on a cash flow basis (many are already losing on a GAAP basis. OIl and gas are getting harder to pry out of the shale too – a Halliburton report just said that a year ago it took 4 million lb.s of sand per fracked well. Now they use 15 million pounds.
YES, the idea that we are going to have endless supplies of cheap oil and gas via fracking is a scam. To a great extent, the main reason why there are so mnay thousands of holes punched in the ground is because hedge funds and others — just like the mortgage financers of several years ago – are throwing cheap money at the industry. Neither the geology nor the finances will support this for much longer.
http://www.forbes.com/sites/billpowers/2014/09/03/the-popping-of-the-shale-gas-bubble/
Looks like the DOW is stuck around 17000……..I think some are sneaking out the back door…………
Fracking is just destroying the water supply……
in 1960 -70 , WHO would have thought that water would cost $1 plus per bottle…….
J…With the way fracking is going……it wont be long before water is $10 a bottle….
WE NEED TO STOPING FRACKING..THE WATER SUPPLY>>>
America…..stay away from Canada’s water its ours!
THE GOLD BEAR IS DEAD
Based on what, Heavy?
Based on gold equites have held their
gains far more than gold has appreciated.
Gold equites have appreciated over and
above the June lows.
If gold was going to collapse gold equities
would be falling much harder now.
That could change but so far the gold
Bull market is performing fine.
It’s slow but often that’s how bull markets
run. This is not V bottom.
Fractional reserve banking just doesn’t work.
It should be rename fractured reserve banking.
Funny Cory. It is getting harder to feel positive isn’t it? Despite a rising market we all have a knot in our stomachs knowing that a day comes. I think it is partly because a lot of the worries that for so long were theoretical are suddenly feeling real. We are not dreaming that capital controls are coming, that bondholders will get haircuts on a bad day or that banks will bail-in our accounts. And we DO legitimately fear that the flip side of sharply rising assets embed a danger for the economy and for our lives on a personal level that suggests a lot of danger lies ahead. Maybe interest rates will be the trigger that turns the flicker to a bonfire. I wish I knew.