Special Editorial with Michael Belkin discussing emerging markets.
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People are comparing what is going on in the Chinese markets with 1929 in the U.S. To us that seems like a bit of an over-reaction. Listen to what Michael Belkin thinks.
It seems that only biotech/pharma continues to be in favor in the market; clearly propelled by both increased medical spending and a revolution going on in biotechnology.
Being a person who has struggled with health issues for over a decade, I do research companies working in areas that might produce breakthroughs in areas that might help me.
Here’s a question for Doc, not any recommendation to purchase stock, …..
No, I am going to do more research myself. Darned stock is up another 10% today.
Glad you guys brought Michael no today. Michael brings some very good points. I’m thinking the EMs are close to a bottom and ready to blast off. Sure would like more discussions regarding some of the EMs.
Agreed. I like Michael, and brought up Emerging Markets the last few months on deaf ears.
Glad you brought Michael *on* today.
There’s been a major change in the fundamentals for gold bullion prices, namely that interest rates have gone negative in the secondary markets, which means negative interest rate policy in the U.S.
http://online.wsj.com/mdc/public/page/2_3020-treasury.html#treasuryB
Hey Fran, can you explain that in more detail? I saw the spreadsheet on the link and future pricing. How does the fundamental change with bullion and the bond yields correlate?
Does this mean asset backed bonds??
Negative interest rates are bullish for gold.
Matthew,
The whole financial system is changing. Rates will go up and so will gold. It’s a new paradigm shift. That’s my point with what I said about the interest rates and the bonds.
Gold should bottom around mid September. Rates should go up then and the sticks should start the major decline, along with junk bonds.
We are in interesting times my friend.
Yea, the sticks, not stocks. Lol
That’s not new, Chartster. The key is whether or not the real interest rate is positive. Nominal rates went up in the 1970s but real rates were negative due to rising inflation.
We can expect negative real rates this time as well.
So..the fed raises rates. Bank rates go up along with mortgage rates. The bond yield goes down and the bond value goes up.
So interest rate policy is changing and going up , yet bond yields go down. The only explanation for this would be asset backed bonds?
I’m missing something here ( or everything maybe.. )
What’s going on with this scenario? Someone / anyone??
GREEKS READY TO CALL FOR ELECTION……..”we will not be bullied” …..zerohedge.
Was this a Michael Belkin advertising clip? He does a good job puffing himself up to promote his own newsletter.
Hey !!!!!!
The God rejecting world.
Blasphemy against God..
with same sex marriage.
This world is going to burn.
Gods wrath is so much worse
than man’s nuclear holocaust
that might come to this world.
No ones escaping this only
through repentance and a
relationship with The Lord
God.
Better wake up out there !!!!
CNN says B O smells good….
Just a chuckle. .
Time to repent !!!!
You won’t enjoy the smell of fire and brimstone.
Everyone is being deceived. Few will escape.
We all need to prepare. However, few will.
Here’s what people should be doing before its too late.
Start listening to all the books in the New Testament.
http://listen.talkingbibles.org/language/eng/
Everyday ask for forgiveness (repent) of sins.
Get on your knees and pray. If you don’t know
what to say then google (The Lords Prayer ).
Pray at least once a day and repent.
You should also include in your prayer to ask
The Lord God that you may be counted worthy
to escape what’s coming to this world.
All of us have that responsibility and if we don’t
form a relationship with our Lord God we will suffer
eternal judgment.
Its our own fault we missed out in paradise for eternity
and suffered the consequences.
Can’t blame God you are in hell for eternity. God does not
send anyone to hell, we send ourselves there.
I’m walking the talk too. Doing all of the above. Anything else
is very very foolish.
Watch this video. Our fate is now sealed.
Remember, when everything burns
you were warned. Not by me but by
many and God Almighty himself.
Great pain and human suffering
is now on its way very soon.
I agree that the A share China market may have topped.
There should be an arbitrage situation coming up in October, because of the divergence of A ans H shares. Several companies trade as H and A share, but a share in the company is typically valued more highly on the mainland.
As part of the introduction into the SDR regime, I would expect more convertibility to happen for China and eventually A and H shares to become one and the same. Likewise for N and P shares in the same company.
Thus it would be dangerous in the future to short an H share which might be trading at a premium to an A share in any given Chinese company.