A recap of the markets and some sectors that could lead to a broad market correction
Rick joins us to kick off today with a general market commentary. We then get into a couple sectors that Rick thinks are a dangerous place to be invest and could lead to a more broad sell off.
Click download link to listen on this device: Download Show
BTW – There are some really hilarious posts this week on almost every blog posted. The comic relief is appreciated sometimes, so if you missed some of it, just go read the old blogs. We have a great group of wise investors and merry pranksters on this site.
Good luck to all as you close up your week and everyone have a great weekend!
I particularly enjoyed the snippets from “Blazing Saddles”
🙂
Good point Shad. I find the comments are getting better & better with less useless links to videos & shouting online which is a personal peeve of mine……..
Agreed. Everyone has posted up some great links to articles to a plethora of related websites that are actually really interesting reading. Also there a number of Q1 earnings reports, peoples technical analysis charts, and a number of very well written small passages on the macro picture, the oil market, bonds and long term treasuries, the US dollar, geo-politics, and individual stock picks.
I frequent about a dozen other websites each day, and get into the insane world of other blogs, but none of them compare to the Korelin Economics Report.
Napoleon Hill,in his book “Think and Grow Rich,” has a whole chapter on having a Master Mind, and a big component is have a Mastermind Group to bounce ideas off and the combined effort makes the individual members stronger, more well-informed, and have the “slight edge”.
Shad,
Great points today. And think and grow rich is an excellent book. Practicing those principals and having a master mind group is key. As no man is an island.
Agreed Chartster. Thanks!
Yes, it was great book!
I assume that is a compliment!
It sure is a compliment Big Al. I usually consolidate all my other thoughts here from other sites on different fundamental analysis and technical analysis, because on most days people are receptive, collaborative, and friendly.
Other blogs (like on Yahoo company pages or Motley Fool) tend to get real ugly and people spend so much time insulting each other, that if they’d spend the same amount of time just referencing why they feel a certain way or post a link, and give people the space to disagree then everyone could learn from each other. Disagreeing is OK, and natural, but name-calling, pestering, shouting, etc… is not productive or helpful to anyone.
This site is a diamond among mountains of coal.
Mine too Chris.
Completely agree with you on this one Chris
Thanks, in part, to you Shad!
Right back at ya Big Al. It’s a sharp group you and Cory have assembled here. Thanks!
I think Canada and the UK beats the US for crazy house prices – but the craziness for house prices across the Angl-Saxon countries just shows how ludicrous everything has got.
People always generalize house prices within a country. Crazy prices are limited to a few (highly populated places). Thinking house prices in ‘Canada’ are high is ridiculous. People desperately want to live in Canada and supply isn’t there.
Yeah, I know – you just don’t have the land in Canada to build.
Bob, the vastness is actually one of the largest constraints. Not a lot of demand for living in the back country. That puts the pressure in very specific areas. you can just jump on a train or bus and commute from anywhere like in Europe.
No, it is the low mortgage rate. BOC is using mortgage to pump money into the system, like QE in US. It both benefit the banks but at least people end up with hard asset. I think it is a less bad choice.
meant to say you cant just jump on a train or bus
Lawrence. I agree with you but my point is there is no bubble in Canada at the moment. Locally, there will always be some bubbles, but on a national level I do not believe Canada is living in a real estate bubble.
Agree. It is only in large centre’s. I don’t think low mortgage rate is going away soon. High debt in west world requires government to keep interest rate low. Oherwise they are broke. Canada does not have high government debt so it will try to keep canadian dollar low by pumping money into society instead. We are stuck. Cannot afford high dollar due to export. Keep buying houses wherever makes sense. Buy is saskatween if you can.
Did you mean Saskatoon or Saskatchewan?
BIRD, Saskatoon might be right. Some alberta companies might end up there in the next few years. West part of saskatween might benefit.
To locate headquarters, they need big city to have the talent pool
I’ve been blowing the horn about how high Canadian real estate prices are for at least five tears, they just keep topping and yesterday I read that they have fifty new high rise condominiums many already approved and some in the development stage for one area in Toronto. (Bloor and Yonge) One building is eighty stories high and a number of others are approaching that height, there goes the sun, the prices are enough to give you the willy’s. DT
A TOOL SHED……with 19 people crowded into a room 7×11 “California Dreaming”…and Momma Cass could not fit in the space.
Warren B. needs to be taken to the WOOD SHED.
The market has nothing to do with the “real” world, yup, we lost price discovery at least a few years ago now.
Except our real world is becoming Totalitarianism, maybe it does reflect the “real” world.
I live in the DC area and the housing market is doing quite well. I have 50K equity in my house that I bought for 189K back in 2003 about 30 minutes from Washington DC. I got in before prices went psycho and road it out while I was underwater. I still owe 178K due to some financial hardships but am happy with my position.
Martin Armstrong latest on gold:
Gold & Stuttgart
http://armstrongeconomics.com/archives/date/2015/05
GL to all investing/trading.
LPG
“Save our Cash” is the new mantra in some blog circles these past weeks. It resonates in the mainstream population with about as much enthusiasm as “Save the Whales” though.
In the fewest words possible; almost nobody cares.
And that should tell us all we need to know about the future of a cashless society. It is not as though there was a war on cash nor even that we have witnessed pitched public battles and heartfelt debates on the subject. Nothing even close has come about.
Instead, cash has just become a casualty of the public’s love affair with technology, novelty and convenience. There are not even any groups or organizations dedicated to representing the cash side of the economy. None at least that are considered legitimate or legal.
And no single person has yet materialized to carry the flag or become the focal point as the savior of the vestigial remnants of our old money economy. Cash is a cause in search of its own meaning. It has no political backing nor is there a caucus or constituency in the greater public.
The debate does not rage as some might presume. Rather it is filler and news-bites in the midst of more engaging and dramatic news and entertainment.
As a concept, the worry of going cashless fails to be competitive as a populous idea and does not fetch minds and eyeballs in the news stream nor does it pull at the heartstrings and stir emotional reactions. Neither does the idea of a cashless economy inspire much fear (but it probably should).
And so the advent of all electronic currencies will come as lamb into the world as cash itself slowly fades into the background with hardly a peep from the public or interest groups on preventing its demise.
What’s the difference anyway? We are already cashless on almost every level imaginable. These days it is only the smallest percentage of all transactions that are conducted that way anymore and the obvious inconvenience has been reinforced on us at every level outside the convenience store.
Anyway, it will not vanish as quickly as some suppose. Certainly not for the major reserve currencies that are still used widely across the planet in paper form. But the demise of cash does look to be inevitable and unavoidable at this stage. It is just a matter of time whether that be ten or twenty years.
Should we really care? And are we merely Luddites to oppose electronic alternatives? To me, this is one of the most interesting aspects of how new electronic technologies have smitten us and made the unthinkable seem rather ordinary and non threatening.
Cash can now die peacefully and in its passing we might collectively do no more than lift a glass and say a toast to its ending. So long old friend. You were great while you lasted.
By the way…who’s picking up the tab?
I….um, forgot my phone at home.
XOP oil etf has been correcting for 30 days and I think it is time for it to turn up. I got back into it too soon as I was too impatient. I still have a headache from driving my S4 at Mosport track yesterday taking a day off after maybe 2 years. I think the market is about to break out any time now after some hiccups.
I too think that it is getting closer and closer!
I always like listening to Rick talk about what’s going on.
Good thoughts today guys.
I recommend everyone check out the multiple links to articles, insights, and updates from all the contributors from yesterday on all 3 blogs. There is so much information, I was up half the night following up on some of it.
Also, this is a daily occurrence where half of the posts on the prior day come in the next morning, so it is a good policy to review several days back as everyone has so much better content than 99% of the other websites out there.
Even last weekend’s show has 248 comments, and I’ve been finding new info in there all week. Tuesday & Wednesday were chock full o great tidbits as well.
Cheers!