Chris Temple, of The National Investor, comments on the markets in the aftermath of yesterday.
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It would appear that gold has stabilized after the huge downward plummet yesterday while the domestic conventional markets, as of this morning are beginning to move downward. What does this mean for all of us. Listen to what Chris thinks.
I’ve got into many more specifics on the subject in the past here, and we can ask Al if we can do so again; maybe on the weekend show?
Sounds good Chris. Its an an area of interest to me. Back in the 30’s the places to go were utilities, radio and other fields of growing innovations. But this time around most of the equivalent tech stocks and utilities are already overbought and overpriced.
So not much room to move up meaning the odds are better they decline.
What I am most interested in hearing is what you think are going to be the movers this time other than gold, silver and other beaten up resource plays. What is our 1930’s equivalent that has capital appreciation and / or dividends built in that has not already been pumped up over the past 6 years.
The common refrain we hear these days is “there is nowhere left to invest” but of course that does not mean some companies will not suddenly outperform even as others are being sold off hard………
Maybe it will again be the usual….guns, arms producers, aircraft, cigarettes, booze, marijuana…..or maybe its going to be opportunities to snap up bargains in the EM’s and Asia that will be on fire in a few more years time.
This seems a good time to make plans for that economic lifeboat you have talked about in the past. Everyone is not going to just be sitting in cash that’s for sure. Even if the idea is appealing on some levels. But what cash-only really tells us is that the investor has no tolerance for risk or they don’t have any good ideas left about where to go.
Good thoughts today guys. I like the idea of the economic lifeboat.
Agreed that the market response to Fedspeak could be the trigger to cause the markets to break out or break down from the range they’ve been in.
The UK has also been talking about raising rates and cutting the government budget deficit aggressively, because the Conservatives have a majority in the House of Commons now. Pound is following the dollar up, not as strong but it is totally trashing the Euro and Yen, despite the petro currency side of the Pound which should have made it very weak and may have caused its correction in 2014. Gold is at new lows in USD and GBP.
It is going to be of great historic interest what happens in the next few years.
Hi Big Al,
Look at YMLP ETF (preferably in a few months after oil gets back to $40). It’s current return is 16% dividends, probably even higher at that point. With that kind of return, you can rest easy. That’s what I plan on doing. Even if oil and gas lingers down here for a while, the price will lift eventually (then again, I suppose that’s what they said about gold too). But people don’t burn gold for energy.
Good call on Fireye Chris.
That comment of yours about a third of all stocks rising during the stock sell off after 1929 is pretty interesting. I would be curious in hearing you elaborate a little more on that. Especially as you have mentioned it a few times already and then commented its not so hard to pick the future winners. Not trying to pick your brains too much here. We know you have a paid site but if you care to go a little deeper in the subject I am all ears.