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This is just the beginning of the markets adjustment to the new normal

January 27, 2016

Chris Temple and Doc take another look at the markets to address the overall investing environment. We then relate how the declining markets will impact the political parties throughout this year. Also an update on what could happen to the share buybacks at major companies.

We apologize for the choppy quality in parts. With Chris in South America sometimes the connection can drop off.

Click download link to listen on this device: Download Show

Discussion
49 Comments
    Jan 27, 2016 27:31 AM

    Rick is right……This is popping of the debit bubble.

    Jan 27, 2016 27:34 AM

    Chris makes a good point but I think the macro trend is too strong. Deflation is a cruel master.

    Jan 27, 2016 27:40 AM

    Oil is showing you how the bear will rule the market. Slow grinding down and then hibernate till everyone gives up hope. Then the bull returns some day.

    Jan 27, 2016 27:46 AM

    Excellent observations again from both your guests. Chris mentioned at the end of the segment that the “Fed may try to create some new monetary inflation. Question: Haven’t they been trying that for the last 7 years and they learned that pushing on a string is fruitless. What else can they do? Send us all a big check and hope we’ll spend it?

      Jan 27, 2016 27:31 PM

      My point, Silverdollar, is that they will do that again some point when they pretty much have a gun to their head and no choice. For the time being, however, they very much want to NOT have to do that for a while for various reasons, one of which is that they have some inkling that QE was more trouble than what Joe Sixpack got as a result.

        Jan 27, 2016 27:53 PM

        Thanks for your comments.

    CFS
    Jan 27, 2016 27:53 AM

    I used to admire the ability of some economists, but some really scare me right now with their Keynsianistic thinking. many are advocating more and more spending to stimulate inflation, with the belief that if the consumer is tapped out then governments should either directly spend or give money directly to the consumers.

    The problem is DEBT.

      Jan 27, 2016 27:01 AM

      Debt is always a problem……………….

      Jan 27, 2016 27:10 AM

      The problem is even the “right” in the U.S. has no problem the Marxist monetary system. The buffoons don’t know any better. And the Democrats? They’re worse than buffoons.

      “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
      – John Maynard Keynes

        Jan 27, 2016 27:18 AM

        From the “laugh or cry” archives…

        https://www.youtube.com/watch?v=07fTsF5BiSM

          CFS
          Jan 27, 2016 27:46 AM

          Even though Schiff put some of the words in some of the people, it is scary,to me, how some people think. (Or don’t think)
          Freedom or Control?
          What ever happened to “live free or die” attitudes.

        CFS
        Jan 27, 2016 27:38 AM

        The danger of “socialism” is stepping in the direction of communism where it is the government that consumes everything for they have the army, guns, police, whatever. Government seeks to sustain itself and thus consumes everything, which ultimately leads to revolution. The police are already moving toward being the enemy against the people by supporting the state rather than protecting the population.
        Martin Armstrong

          Jan 27, 2016 27:56 AM

          In principle, there is no difference between socialism and communism – or fascism, for that matter.

            Jan 27, 2016 27:33 PM

            Back to political science class. Democracy, socialism and communism is just the mailed fist of Capitalism. National Socialism is against all of it and is for the nation and the society or race.
            It has nothing to do with Marxism and other fake peoples cause movements.

            Jan 27, 2016 27:45 PM

            Steven, that is complete nonsense.

      bb
      Jan 27, 2016 27:11 PM

      Debt could be forgivin.

        Jan 28, 2016 28:00 AM

        No, Steven is spot on

      Jan 27, 2016 27:33 PM

      The problem is more fundamental than that, CFS — it is the nature of a fractional reserve system controlled by private interests to begin with. One could engineer all manner of “make work” projects, infrastructure and other stimulus IF it were funded by a social credit regimen of the appropriate sort — NOT DEBT.

        Jan 27, 2016 27:34 PM

        Sorry, CFS…I don’t know how this ended up way down here when I was responding to your comment WAY above this.

    Jan 27, 2016 27:05 AM
    Jan 27, 2016 27:06 AM

    ZIRP………………was a joke on the saver…

      Jan 27, 2016 27:22 PM

      Not joke, a war

    CFS
    Jan 27, 2016 27:21 AM

    FCX is screaming up.

    CFS
    Jan 27, 2016 27:50 AM

    Yellen is a democrat …..why would she want to kill the economy even more by a further rate hike?
    She may be a stupid liberal, but she’s not that stupid.

    Jan 27, 2016 27:54 AM

    Looks like 2 out of 3 of my stock heroes are calling for a short term market rally. 2 out of 3 are also hinting that oil might be forming a base. And 1 is calling a gold miners bottom. I got out of my S&P short position this morning. Added to an oil and gold bull position.

      Jan 27, 2016 27:31 PM

      Jason…”Added to an oil & gold bull position”…IMO that was a wise decision, as I posted about a week ago.

      Jan 27, 2016 27:54 PM

      Hey Jason

      Have you thought about buying any PM miners for the long-term?

      And when I say long term, I really mean it: 2022 (as in the year)

        Jan 28, 2016 28:54 AM

        Is there something specifically happening in 2022 that you have in your sites, or do you anticipate that the recovery and bull run in PMs may resume and conclude in about 5-6 years?

    CFS
    Jan 27, 2016 27:10 AM

    http://www.zerohedge.com/news/2016-01-27/fomc-preview-rate-cut-very-much-mix

    Reminds me of the song…..

    You put your foot in,
    You pull your left foot out…

    Jan 27, 2016 27:42 AM

    ABX is showing us the near future for the sector…

    http://schrts.co/fYK7ww

      Jan 27, 2016 27:56 PM

      And when the dinosaur rises, what next? (Rhetorical question, of course)
      😉

    Jan 27, 2016 27:44 AM

    Gold (GLD) is clearing the way higher for silver…

    http://schrts.co/aPPwaU

    Jan 27, 2016 27:46 AM

    ready to punch through…….1124.70……….1125 looking good

      Jan 27, 2016 27:18 PM

      1130 next move……..1150……….1250…..new game

        Jan 27, 2016 27:14 PM

        Spot price is a joke at this point, IF COMEX ONLY HAS $80Mill in inventory for delivery.

          Jan 27, 2016 27:16 PM

          Come on…………..72,000 oz. available………..for delivery……this should be BIG NEWS….

            Jan 27, 2016 27:24 PM

            Jerry …Its only big news at KER & other similar sites that tell the truth …
            Small news at MSM , who like to lie.

            Jan 28, 2016 28:31 AM

            ditto………on MSN…….

    Jan 27, 2016 27:21 PM

    I think US$1122 was a resistance/support level for some posters. What is happening NOW @ 11:20 EST is quite interesting. No?

      Jan 28, 2016 28:05 AM

      I posted that I saw $1122-$1123 as resistance for Gold and it did approach and recede from this level twice on Tuesday and twice today, however it did slice up through to the upside and downside yesterday only to go back up and tag it again a the time you mentioned yesterday. That is a total of 5 times this $1122-$1123 zone acted as resistance in the last 3 days, so it seems relevant.

    Jan 27, 2016 27:23 PM

    OK. I had a really weird thought (or, perhaps more accurately, a “What If” moment)

    What If: China is getting ready to announce a digital currency pegged to gold.

    Thoughts, anyone?

      Jan 28, 2016 28:00 AM

      You mean something like their version of BitGold? It’s possible.