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Are the US equity markets the safest bet up to year end?

November 20, 2015

We kick off today with Gary Savage discussing the relative safety in the stock markets right now. He believes that the markets are the best place to be for the next month and we agree with him.

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Discussion
65 Comments
    CFS
    Nov 20, 2015 20:47 AM

    I agree with Gary.
    However, all here should understand that everything in the market place is an illusion……created by the Fed and the Government.
    For as long as they can, they will make everything appear to be just fine.

    Until they can’t.

      Nov 20, 2015 20:21 AM

      We have been saying that exact same thing for a long time Professor.

      In other words, “I could not agree more”!

    bb
    Nov 20, 2015 20:54 AM

    Of course it is cfs, if ya read the right books they will tell ya that time and space are the same thing and both are illusion.

    As for goldstocks, Im hopin I buy around THE low and make a few coins.

      CFS
      Nov 20, 2015 20:05 AM

      Au contraire! Time and space are but 4 components of a multidimensional continuum.

        bb
        Nov 20, 2015 20:40 AM

        lol, good one cfs.
        Wouldn’t that depend on which reality your talkin about tho?

      Nov 20, 2015 20:22 AM

      My similar plan bb!

    Nov 20, 2015 20:57 AM

    Ugh! Got stopped out on my JNUG! But that’s OK. I lost a grand total of 12 cents.

      GH
      Nov 20, 2015 20:37 PM

      Run away, live to fight again another day!!

      The way I figure it is, what is the potential gain and what am I risking. Say for JNUG, it often doubles in a daily cycle upswing, so if you can get in with a well-placed stop, say 5% below your entry, you can take a few swings at it before you get it right, and still come out way ahead. Only catch is that it often jumps so quickly that it’s hard to get in with a well-placed stop that close. And I’m not comfortable risking getting stopped out with a 10 or 15% loss.

      Nov 20, 2015 20:17 AM

      People do strange things in the grip of fear. Obviously all countries ought to know who is coming in and where they’re going. Our own country has lost track of untold numbers of tourists. Knowing they didn’t depart and not knowing where they are at the moment. Common sense says that problem should have been corrected years ago………….but it hasn’t been to my knowledge.
      The Syrian refugee vote in the U.S. House is a knee-jerk reaction motivated by small minds for politics sake alone. Reminds me of the day they changed the name of “french fires” because France didn’t join the Bush/Chaney invasion of Iraq. Ignorance has no bounds in the US house. JMO.

        Nov 20, 2015 20:26 AM

        Yeah, I certainly do remember “freedom fries”

      Nov 20, 2015 20:25 AM

      Thanks CFS,

      I did read that earlier today in The Seattle Times.

      Perhaps it could unravel for the President.

    Nov 20, 2015 20:04 AM

    The word gold didn’t enter the conversation. That’s fine. I agree wholeheartedly with Al’s comments about doom & gloom newsletters. The following article by Gary Tanashian isn’t really one of those in my opinion and actually adds some good thoughts. I thought perhaps some others on this page may enjoy reading his comments: http://news.goldseek.com/GoldSeek/1448028240.php

      Nov 20, 2015 20:12 AM

      Tanashian is one of the better guys out there.
      Thanks.

      Here’s Tim Wood:
      http://talkdigitalnetwork.com/2015/11/the-story-business-tv-doesnt-want-you-to-hear/

        Nov 20, 2015 20:53 AM

        Mathew:
        Thanks for the Tim Wood post. Wish I’d heard him a couple months ago.

      Nov 20, 2015 20:19 AM

      Good article Silverdollar. Thanks for posting it.

      Nov 20, 2015 20:28 AM

      Thanks Silverdollar,

      Some of the gloom and doomers really do make me sick. Sad that so many think that many of these folks are brilliant.

      Nov 20, 2015 20:35 AM

      Thanks Silverdollar, really nothing new for any of us here.

      Thanks for sending the link.

    Nov 20, 2015 20:15 AM

    The HUI just came within pennies of completely filling yesterday’s gap. The miners are a buy.
    http://schrts.co/hw61wk

      Nov 20, 2015 20:57 AM

      I really wish that I understood technicals as well as you and Doc!

    Nov 20, 2015 20:23 AM

    Here is a list of all the Silver stocks and Silver ETFs I can think of. I realize there are some other Gold/Silver companies that have substantial silver credits, but they typically report in Gold equivalent ounces. However, if I missed any good Silver companies or ETFs please post them underneath.

    **Anyone want to post their “Top 10” or “Dirty Dozen” list of Silver companies or ETFS?**

    SILVER STOCKS & ETFs (US ticker symbols)

    3x LONG SILVER ETN USLV
    ALEXCO RESOURCE CORPORATION AXU
    AMERICAS SILVER CORP SMNPF
    APOGEE SILVER AGEEF
    AURA SILVER RESOURCES AUSVF
    AURCANA CORPORATION AUNFF
    AVINO SILVER & GOLD MINES ASM
    AVRUPA MINERALS LTD AVPMF
    AZ MINING INC WLDVF
    BAYHORSE SILVER KXPLF
    BEAR CREEK MINING CORPORATION BCEKF
    COEUR MINING INC CDE
    DEFIANCE SILVER DNCVF
    DOLLY VARDEN SILVER DOLLF
    EL TIGRE SILVER CORP EGRTF
    ENDEAVOUR SILVER CORPORATION EXK
    EXCELLON RESOURCES INC EXLLF
    FIRST MAJESTIC SILVER CORPORATION AG
    FORTUNA SILVER MINES INC FSM
    FRESNILLO PLC LONDON FNLPF
    GLOBAL X SILVER MINERS ETF SIL
    GREAT PANTHER SILVER LIMITED GPL
    HECLA MINING COMPANY HL
    HOCHSCHILD MINING PLC HCHDF
    IMPACT SILVER CORPORATION ISVLF
    ISHARES SILVER SHARES SLV
    KOOTENAY SILVER INC KOOYF
    LEVON RESOURCES LTD LVVNF
    MAG SILVER CORPORATION MVG
    MANDALAY RESOURCES CORPORATION MNDJF
    MINCO SILVER CORPORATION MISVF
    MINES MANAGEMENT INC MGN
    MIRASOL RESOURCES LTD MRZLF
    NICOLA MINING HUSIF
    NORTHAIR SILVER CORP INNHF
    OREX MINERALS ORXIF
    PAN AMERICAN SILVER CORPORATION PAAS
    PARAMOUNT GOLD & SILVER CORPORATION PZG
    PROSHARES ULTRA 2x LONG SILVER AGQ
    PROSHARES ULTRA SHORT SILVER ZSL
    PUREFUNDS ISE JUNIOR SILVER SILJ
    SABINA GOLD & SILVER CORPORATION SGSVF
    SANTACRUZ SILVER MINING LTD SZSMF
    SIERRA METALS INC DBEXF
    SILVER BULL RESOURCES INC SVBL
    SILVER STANDARD RESOURCES INC SSRI
    SILVER STREAM AGSM
    SILVER WHEATON CORPORATION SLW
    SILVERCORP METALS INC SVMLF
    SOUTHERN SILVER EXPLORATION SSVFF
    SPROTT PHYSICAL SILVER TRUST ETF PSLV
    STARCORE INTERNATIONAL MINES LTD SHVLF
    TAHOE RESOURCES INC TAHO
    TREVALI MINING CORP TREVF

      bb
      Nov 20, 2015 20:43 AM

      Been awhile since I looked at silver companies.
      I recall doin DD on a few of these.

      Looks like you omitted silver corp.

        bb
        Nov 20, 2015 20:44 AM

        oops,my mistake, just saw it.
        That’s why ya do DD twice I guess. lol

          Nov 20, 2015 20:06 AM

          Yeah, Silvercorp just had a productive 2nd Quarter (due to how their fiscal year is structured). I’ll post the highlights below and a link because they’re doing a good job:
          _________________________________________________________________________
          Silvercorp Reports Q2 Fiscal 2016 Financial And Operating Results

          VANCOUVER, British Columbia – November 12, 2015 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX: SVM) reported its financial and operating results for the second quarter ended September 30, 2015 (“Q2 Fiscal 2016”). All amounts are expressed in US Dollars.

          SECOND QUARTER HIGHLIGHTS

          -Cash flows from operations of $4.6 million, or $0.03 per share;
          -Repurchased 1,638,252 common shares of the Company;
          -Ended the quarter with $70.7 million in cash and short term investments;
          -Net income attributable to equity shareholders of $2.2 million, or $0.01 per share;
          -Silver sales of 1.3 million ounces, lead sales of 13.2 million pounds, and zinc sales of 4.6 million pounds, down 7%, 7%, and 11%, respectively, from the prior year quarter;
          -Realized selling price for silver, lead, and zinc at the Ying Mining District dropped by 26%, 8%, and 19%, respectively, compared to the same prior year quarter;
          -Sales of $27.2 million, down 27% from the prior year quarter;
          -Significant increase of silver-lead concentrate inventory from 430 tonnes to 2,228 tonnes (containing approximately 0.2 million ounces of silver and 2.0 million pounds of lead) at the Ying Mining District, compared to the prior year quarter;
          -Gross margin of 32% compared with 49% in the prior year period;
          -Cash cost per ounce of silver, net of by-product credits, of $1.52, compared to negative $0.98 in the prior year quarter; and
          -All-in sustaining cost per ounce of silver, net of by-product credits, of $12.40, compared to $9.68 in the prior year quarter.

          http://www.silvercorpmetals.com/news/index.php?&content_id=487

            Nov 20, 2015 20:59 AM

            Many thanks both bb and Excelsior.

            Nov 20, 2015 20:37 PM

            Thanks Excelsior.

          Nov 22, 2015 22:40 PM

          I did forget to list the spinoff from Silvercrest ……. Silvercrest Metals (SVCMF). They have a few interesting drill targets they are going after on their remaining properties after the Silvercrest merger with First Majestic. In addition, they have indicated that they may be open to acquiring other assets with the cash they now have on hand, so they may build a nice portfolio of new assets over the next 6-12 months.

        Nov 20, 2015 20:20 AM

        Silvercorp is the only midtier which pays a nice dividend and has zero debt, $70 millions in the bank, and break even at this price. And they have less environmental regulations and cheap labor.

          Nov 20, 2015 20:31 AM

          Mandalay is another great Mid-Tier silver producer that pays a dividend and has good economics. If you are not familiar with them check them out. CFS and Matthew turned me on to them and I have a small position that I’ll be adding to soon.

          http://www.mandalayresources.com/wp-content/uploads/2015/11/2015-11-05-MND-Investor-Presentation.pdf

            Nov 20, 2015 20:35 AM

            They have a lot of gold production too, and some consider them a gold company. Most are unaware of them, but they are producing in Australia, Chile, and Sweden, so I like that they are not just in Mexico for a little diversification.

            bb
            Nov 20, 2015 20:05 AM

            Try trading Mandalay. Or Silver corp.

            Nov 20, 2015 20:30 AM

            Great I will check them up

            Nov 20, 2015 20:06 PM

            So I hadn’t reviewed Mandalay’s corporate presentation in a while, but the link is above:

            With the increase in the Swedish Gold production at Björkdal, and improvement in gold production at Costerfield, Australia, they really should be listed as a Gold company. Most of their silver comes from Chile at Cerro Bayo, and they’ll have a large future Silver & Gold mine in 2018/2019 at Challacollo, Chile.

            Regardless, they’re and interesting and relatively quiet company that has some very nice producing projects, and they are focused on keeping investors happy and involved in the upside potential. I also like the dividend with a 5.3% yield, and it has allowed me to buy and hold this one, and I plan on adding more if we get the other leg down in Dec.

            Nov 20, 2015 20:17 PM

            2 other Silver companies on the list above that are worth checking out, that I don’t hear as many follow in the marketplace are Mag Silver and Sierra Metals. Both are unique, well run, have good cost structures, and have been more stable than many of the more recognized names in the Silver sector during the last few years.

            I still am a big fan of the usual suspects like Coeur, Hecla, Silver Standard, First Majestic, Fortuna, Fresnillo, Silver Wheaton, Endeavour, and Tahoe, but it is some of the smaller producers like Alexco, Americas Silver Corp, Avino Silver & Gold, Mag Silver, Sierra Metals, Impact Silver, Great Panther, Sabina Gold & Silver, and Silver Corp that look most appealing for a multiplier when Silver prices finally get back above $18-$19 (late 2016?).

            Sometime when I have more energy, I’ll throw in my 2 cents on the Silver explorers.

            Good luck to all as you build your holiday wish list for miners that are on sale, and may go further on sale the end of this year and beginning of 2016.

            Nov 20, 2015 20:22 PM

            Thanks Excelsior and to you!

            Nov 20, 2015 20:30 PM

            FINAL THOUGHTS ON JR SILVER MINERS:

            For those that don’t want to take on the risk associated with a smaller individual company or holding a handful of Jr companies, then the easiest way to get exposure to the upside in the Jr. Silver miners is to buy the ETF (SILJ). I really like the weighting and companies in this ETF over the larger (SIL), which is more focused on the Majors & Mid Tiers.

            Here are the current holdings in PUREFUNDS ISE JUNIOR SILVER (SILJ):

            Name Holding Allocation
            MAG Silver Corp. 14.86%
            First Majestic Silver Corp. 11.03%
            Fortuna Silver Mines Inc. 10.88%
            Mandalay Resources Corporation 9.13%
            Hochschild Mining plc 8.23%
            Sabina Gold & Silver Corp. 8.12%
            Silver Standard Resources Inc. 5.59%
            Sierra Metals, Inc. 5.35%
            Endeavour Silver Corp. 4.81%
            Bear Creek Mining Corporation 4.04%
            Silvercorp Metals Inc. 3.74%
            Americas Silver Corporation 3.25%
            Trevali Mining Corporation 2.81%
            Mirasol Resources Ltd 1.39%
            Minco Silver Corporation 1.38%
            Kootenay Silver Inc. 1.15%
            Excellon Resources Inc. 0.91%
            SilverCrest Metals, Inc. 0.79%
            Golden Minerals Company 0.73%
            Aurcana Corporation 0.67%
            Santacruz Silver Mining Ltd. 0.65%
            IMPACT Silver Corp. 0.47%

      Nov 20, 2015 20:58 AM

      Thanks for the list Excelsior!

        Nov 20, 2015 20:42 PM

        You’re welcome Big Al. Maybe some of them would like to be sponsors on the site 🙂

          Nov 20, 2015 20:27 PM

          Thank you, Excelsior. We are currently not actively seeking new sponsors.

            Nov 20, 2015 20:32 PM

            OK. I didn’t know that. Well, then put Cory & Doc on the case to research these companies and maybe a few of the standouts can be featured in future newsletters.

            Have a great evening!

    Nov 20, 2015 20:34 AM

    Safest place to be?

    http://schrts.co/fzmPJn

    I think “safest” is getting defined pretty loosely.

    bb
    Nov 20, 2015 20:46 AM

    Anyone notice if Ricks 1086.50 got hit?
    Im finding it depends on which chart I use if it was or not.
    Was darn close if it wasn’t.

      Nov 20, 2015 20:45 PM

      Rick’s mid point pivot gcz5 1086.5 was exceeded by 70 cents. The pullback has exceeded his “C” coordinate…….the target of 1095.5 is nullified.

        bb
        Nov 22, 2015 22:34 AM

        tx mj.

    Nov 20, 2015 20:43 AM

    Silver has quite a bit of support at the recent low and is now very close to the 50% Fibonacci arc derived from the move from $4 to $49+:

    http://schrts.co/QyNLKY

      GH
      Nov 21, 2015 21:36 AM

      Now THAT is a CHART!

    Nov 20, 2015 20:47 AM

    UUP backtesting and filling yesterday’s gap:

    http://schrts.co/oaaqQF

    Nov 20, 2015 20:54 AM

    This daily chart of DIA priced in GLD says gold is a safer bet than stocks for the next few weeks.

    http://schrts.co/bPTzNs

    Nov 20, 2015 20:28 PM

    Hillary with her cankles is totally against biotechs.

    Nov 20, 2015 20:33 PM

    My juniors finished up 1.6% today while GDXJ finished down 3.2%. Such a discrepancy has been uncommon in this bear market until about two months ago. The selling I have had in the portfolio lately has been extremely weak/low volume.

    The sharp pullback of the last several weeks did not changed the fact that something did change for the better after the summer lows.

      Nov 20, 2015 20:47 PM

      I would feel better if you were in charge of building the weighting in a new Micro-Jr mining portfolio Matthew.

      BTW – I posted up above the main holdings and weighting inside of the Jr Silver ETF (SILJ). They have done and excellent job in the companies selected and the weightings in my opinion, and must have re-balanced everything somewhat recently. They obviously share my enthusiasm for Mag Silver, Fortuna, Mandalay, and Sierra Metals. I also feel once silver prices rebound that Silver Standard Resources and First Majestic will do well due to their concentration on pure silver.

      One company that I have been researching the last few weeks is Sabina Gold & Silver, and they have a pretty hefty weighting to it in that ETF. I was reading their recent releases on junior mining network, and they seem to be doing a good job, and their share price has been on a tear.

      Do you have any thoughts on Sabina Gold & Silver?

        Nov 21, 2015 21:53 AM

        Excelsior, I haven’t taken a close look at Sabina in many years but I can see why it has broken out of its year old base. It has $20M in cash, virtually no debt, and a book value above $1.50/sh. It’s probably a worthy spec but I would wait for a big pullback based on the chart.

        http://ceo.ca/2015/11/16/video-interview-sabina-gold-silver-ceo-bruce-mcleod/

          Nov 22, 2015 22:02 AM

          Matthew – Thanks for the feedback on Sabina Gold & Silver.

          Yes, it looks they’ve done a U-turn, but the move up may have gotten a bit overblown. Thanks for posting the video with Bruce. I guess they should be a Gold company and not in the silver group as the Silver is based on their Silver Royalty Stream, and then they only have minor silver credits in their gold assets.

          Anyways, Sabina Silver & Gold looks to have had a nice turnaround in operational efficiency and have started to separate from the pack like Claude and Avino Silver & Gold. It will at least be one of the survivors in the Jr mining space.

    Nov 20, 2015 20:36 PM

    I think silver is likely to take a run at its August low on Monday:

    http://schrts.co/LA7S1T

    Nov 20, 2015 20:07 PM

    Mr. Korelin:

    Laying the bullshit on pretty thick lately, aren’t ya ?

    This was your comments on diversification right around the tippy top of the resource market in 2011.

    http://www.kereport.com/2011/04/16/eye-perfect-storm-gold-silver/

    After that you spent the next few years pumping penny stock “sponsors”, most of whom were run by “good friends for many years” of yours……most of course which have gotten delisted or gone under $0.02 since.

    As you know, there are many many more examples that can be found during the 2011 to 2013 time frame where you advocated investing exclusively in the resource sector, and many times that you called the bottom in gold during that time frame.

    Listening to the your emphatic comments during this interview today is getting kind of hard to stomach.

      Nov 20, 2015 20:25 PM

      I only say what I truly believe.

      Please do clean up your language by the way.

      When did I ever suggest only buying our sponsor companies?

    Nov 20, 2015 20:28 PM

    When did I ever suggest “only” ?

    Specifically Segment 4 above. Maybe if you backed off a little in these deceptive (to be polite) claims of what you supposedly called in the past, I wouldn’t feel so compelled to step up.

    Nov 20, 2015 20:34 PM

    One more thing…..as for the language……

    Political Correctness, and those who push it, is what keeps us from defining things for what they really are.

    Sorry, but what I heard in this interview from you was bullshit. It would be wrong for me to call it otherwise.

    I also believe, maybe wrongly so, that it is wrong for people to generally get away with such things when they see/hear them.

    I ask that you please be more mindful with your claims.

      GH
      Nov 20, 2015 20:00 PM

      What a load of garbage, claiming your rudeness is defying political correctness.

      If your vocabulary is so small that you can’t find a way to express your ideas otherwise, I don’t think enough of your intellect to pay any attention to the rest of what you say.

    Dan
    Nov 20, 2015 20:52 PM

    Bearish sentiment is pervasive…are you kidding me? The guys at Zero Hedge have been laughed at for years. It’s a running joke over there that the market is rigged to go higher and you’d have to be an idiot to be short. Guys like Bo Polny and Dent calling for crash have been laughed out of the room.

    Sure enough, most letter writers and retail traders have bought into this Fed put idea with the latest sharp bounce, although we haven’t made new highs since May and negative divergences over the past 12-18 months still exist. Even the top gurus like Armstrong think the worst that can happen is a “slingshot” false panic move and then off to new highs! Talk about herd mentality.

    Collapsing credit, commodities, with many stocks already in a bear market. Bubble phase? Yeah right. I will keep fading this delusion with very cheap out of the money SPY puts. A deflationary bust taking the SPY below 2009 lows is entirely possible.

    Nov 20, 2015 20:24 PM

    The reason I come here and listen everyday is this place is NOT a doom and gloom place.
    I must have a good balance to manage my portfolio. That being said I can still find a clear, objective view that I can NOT find in the mainstream media

    This place is a honest view without the crazy people. I’ve always thought Al and Cory give you the truth. Good or bad. I’m very happy with what I get here.

      Nov 21, 2015 21:24 AM

      +1 (however there have been a few crazy people) 😉

    Nov 21, 2015 21:53 AM
    Nov 21, 2015 21:55 AM

    Fed To Hold An “Expedited, Closed” Meeting On Monday

    http://www.zerohedge.com/news/2015-11-20/fed-hold-expedited-closed-meeting-monday