Have the markets gone too far too fast?
For our conversation today with Chris Temple we discuss a topic that many people have been trying to decide… Have the markets and investors gotten too optimistic and driven markets higher than they should? Optimism is good, since it feels like a long time since we had this much positive thinking but blind optimism can be dangerous.
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Agree wholeheartedly with Chris’ hesitancy to buy into the euphoria BS. Same with Cory. The same old, same old reduce regulations and cut taxes has been tried under Reagan and Bush II, with the same results. Both resulted in huge debt increases with some winners on the margins.
There’s no doubt we need infrastructure spending but most improvements will be one time gains in GDP from the construction buying of materials and wages. There’s little gain going forward. Take a bridge replacement for example. We’re all safer, no doubt, but there’s no improvement to GDP from the improved safety and ease of travel. With that said, we still need the new bridge. But…….will the cost of the debt bring more pain than the improvement?
Cutting corp. taxes helps who? Perhaps in some cases, new production results in new jobs but more than likely in far more robots and automation, increasing output to add to the supply of stuff, much of which isn’t needed and adding to the income of the 1%. I just don’t see any real benefits coming to the country until we somehow get rid of debt. No, I don’t have an answer on how to accomplish that and neither does anyone else. We’re not going to ‘grow’ our selves out of it!
TriMetals drills 24.4m of 1.02 g/t AuEq at Gold Springs
2016-12-14 06:48 ET – News Release
Mr. Ralph Fitch reports
TRIMETALS MINING INC. CONTINUES TO EXTEND MINERALIZATION TO THE EAST AND SOUTH OF THE JUMBO RESOURCE AREA AT THE GOLD SPRINGS PROJECT IN NEVADA AND UTAH
TriMetals Mining Inc. has released the results of the second round of drill holes (six holes) from the southern end of the present Jumbo resource area. The company believes that these new results, as well as the earlier reported set of results (see press release dated Oct. 26, 2016), clearly demonstrate an extension of the mineralization to the east and south of the southern end of the Jumbo Main zone, which is located toward the northern end of the five-kilometre-long Jumbo structural trend gold target.
New footwall zone discovered.
The market corrected to just 2265 and turned around. Still looking strong.
NexGen Returns Multiple High Grade Intersections at Arrow
Dec. 14, 2016 /CNW/ – “NexGen Energy Ltd. (TSX:NXE, OTCQX:NXGEF) is pleased to report assay results for 23 holes from our summer drilling program on our 100% owned, Rook I property, Athabasca Basin, Saskatchewan.”
Here’s a little ditty that I posted on CEO regarding Uranium miners in the Athabasca Basin in Canada versus other hot spots globally:
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@Excelsior – “There may be a billion pounds of Uranium in the Athabasca Basin, ($CCJ $DNN $NXE $FCU $UEX $CVV $AL) but not all of it will be as “economically viable” as some believe due to the depth, water issues, permitting timelines, environmental push-back. Some of that Athabasca Uranium is actually underwater making accessing the ore more challenging, or directing miners to underground where they lose much of those ounces. This is one of the key advantages $NXE has over many of it’s neighbors for example (it doesn’t have the water issues above or below).
Higher grade is awesome, but it isn’t always the most economical. There are plenty of commodities where lower grade resources end up being more economical due to power, roads, water, jurisdiction, taxes, permitting, distance to mill, recovery rates, etc…
The other thing about much of the exploration being done in the Athabasca is that much of it is years away from all the permits and development needed to bring it to market.
Many of the existing producers or development stage companies in the US ($UUUU $URG $UEC $URRE $PENMF $WSTRF) and Australia ( $EGRAF $BKLRF $TOEYF $BNNLF $BOE.AX ) are positioned to capitalize on prices as they rise in 2017-2020.
The US is the #1 nuclear country and imports 90% of its fuel. (just imagine if the US imported 90% of it’s Oil) The US producers that supply this need will have a big advantage for negotiations in this next cycle, as will the African deposits (GXU) that may supply the reactors being built in Africa, the Middle East, and Europe . “
Here’s another great thought for the day from Peter at Epstein Research:
@EpsteinResearch – “$NXE, one way to think about NexGen is that the stock price could easily outperform any index on the planet, even the TSX-v by a tremendous amount. The stock is 21% below its $2.86 high, and that high was while the uranium price was still in free fall. So, I envision $NXE as a stock that’s very valuable as one that will have very low correlation to the market. ”
“Few companies accrue hard asset value methodically (with pounds added to the resource month after month)… we don’t know how many pounds yet, but one would have to be naive to think it’s not at least a double that of the maiden resource, and with a very meaningful component of Indicated in the next update. Dundee has $3.4 target based on 290-305 mm pounds. Most of the analysts are working with conservative estimates JUST LIKE THEY DID ON THE MAIDEN RESOURCE! Once the new # hits, the entire analysts community will re-rate the stock, giving them the comfort to raise targets by a lot. ”
“Price targets in my opinion will be raised by at least 50%-75%, or more, (depending on how big the resource). This is going to happen, nothing will stop those price targets from possibly doubling along with a doubling or more in the resource figure. And this will happen within just 4-5 months. That’s a pretty good situation to be invested in. Add to that, NexGen is one of the only games in town for #uranium stocks that have good trading liquidity. And, the higher Cameco’s valuation, the less relative upside compared to NexGen in a uranium stock price rally. Add to that, a rising uranium price, up significantly from an $18/lb. low 10-11 days ago. Even if not the only uranium stock to own (I like a few others as well), this one is a must own. $NXE is a proud sponsor of….”
The Pace of Japanese Restarts
DECEMBER 13, 2016
http://www.fissionuranium.com/blog/index.php?&content_id=552
Utility regulator wants nuclear energy to count as renewable
The Associated Press December 13, 2016
The Fed has spent a whole year gently caressing and warning the markets of .25% hike and now they have 3 hikes planned for 2017 which is nonsense. They will likely spend another warning and end up with one hike or none.
Paul…..Putin will make them do it ……..
Ha, ha, ha!
I broke a finger-nail this week. I am pretty sure that it was all Putin’s fault. He is here, he is there, he is everywhere.
Putin Peak-A-Boo
SGE gold just broke above $1200