Big picture Dow 20,000
Chris Temple joins us today to discuss the big picture for the Dow 20,000. With such a round number the focus people get distracted at what is actually driving the market to this level. We look deeper into the sentiment and actual stocks that are contributing to this move.
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Chris always brings a logical perspective to the table. Thanks.
You’re welcome — Happy New Year!
If the Trump is like Ronald Reagan then gold investors are screwed. Gold was close to 600 when the Reagan term began. At the end of the term, gold was about 400.
The national debt also tripled I think under Reagan, which makes you think that there is no correlation between the debt and the price of gold.
You’re getting warm!
Reagan inherited a situation that had very little in common with the current one. From interest rates and debt levels, public and private, to stock market valuations, everything was very different. In addition, gold had just completed a 25 fold advance in under a decade was about to begin a long consolidation — in a price range that averaged about 11 times the pre-Nixon level.
The correlation between debt growth and the gold price is very real but not very useful for day-to-day decision-making.
http://inflation.us/wp-content/uploads/2015/02/goldnationaldebtcorrelation.jpg
Thats right, its different this time.
That is a complete misapplication of that old saying. God help you if you don’t know that.
Will the Trump tax cuts even be retroactive to 2017? Jim Puplava thinks its questionable whether it can be done in time.
Massive new tax needed to pay for infrastructure – rebuild . heavy tax on gasoline would help. But will Repubs [often from rural areas] be willing . ?? Otherwise it must be emergency spending which blow a hole in the budget which will make Obama seem to be a conservitive. Disney looks cheap here. Love S
If Trump repatriates US profits from abroad that will cause an appreciation of th USD. And if you see gold as an inverse dollar trade, that means that gold has further downside. I am in the camp believing that gold has further downside. 😖
How is the beach and Youth Hostel at Tisvildelege, Anders? It was fantastic in 1973!
AFC:
At bottoms everyone sees further downside.
Fort Knox audit – Koos Jansen -twitter
I’ve received the Fort Knox audit docs from the US Mint, REDACTED. Surprisingly they dont count 1200 pages @tfmetals
@KoosJansen 33m33 minutes ago
Nice try Treasury (/Mint)! Asking $3,000 to obstruct my research. Another example of the *scam* they’re running. We want a refund!
https://twitter.com/KoosJansen?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
I continue to hear the comparisons of Trumps projected recovery to that of President Reagan. President Reagan was President during a time of falling interest rates as apposed to President elect Trump having to deal with rising rates.Unless of course the Fed stops raising rates.I don’t think were comparing apples to apples here.
You are absolutely correct, JohnK, not apples to apples at all.
The dollar will take a break soon…
http://stockcharts.com/h-sc/ui?s=UUP&p=D&b=5&g=0&id=p24939200474&a=491599323
Al, you live in the north-west of the US which is home to Boeing, Microsoft and numerous other tech companies which are prospering. Those workers spend money on cars, houses, in coffee shops, at retailers, etc.
I would suggest that you are living in a bubble… and that bubble is inflated by some money fleeing China and arguably being laundered via purchase of properties in the Pacific northwest… but the bubble you are seeing is the exception compared to the rest of the US.
Tons of young people move there from all over the country, too, which also boosts the economic growth there.
The average investor who thinks that conventional stocks are appealing right now needs a lesson in risk versus reward.
http://stockcharts.com/h-sc/ui?s=DIA&p=D&yr=1&mn=7&dy=0&id=p49731434139&a=495911771
American investors are piling into Northern Dynasty Minerals, (NAK) almost 10 million traded today and The Canadian market is closed. This is a once in a lifetime shot!
D.T:
I continue to hear you pump Northern Dynasty. Google Newhalen,AK,I have a nice four bedroom rambler there. I have been for this mine ever since Tech Cominco was negotiating their base camp with us.
I started looking at things differently once I learned that the tailings ponds would have to be maintained until the end of time due to their sulphuric acid content.Nobody has ever dealt with a problem of this size before.Interesting enough,in the December issue of the Resource World Magazine,there is an interesting article titled “Curing a bad case of acid rock drainage.Although the article is not referring to the Pebble project,it is worth the read.I was to jaded to buy Northern Dynasty’s stock this time.This time I mean,a new administration,but also be mindful that Agnico Eagle pulled the plug. Last time the stock went over $21,This time it very well do the same.
Teck Cominco
This time it “could” very well do the same.
John K, I have The December issue of Resource World Magazine, I have just read the article you are referencing called ” Curing a bad case of acid rock drainage”. Thanks for the heads up, technology is moving so fast these days that even a luddite could understand you can’t leave a deposit like that alone forever. Agnico Eagle might have pulled the plug but they aren’t big enough anyway to handle this deposit, I’m afraid it would take several majors working together. About nine tears ago TD bank profiled NDM and at that time they felt this stock was worth $108 CDN per share, I wish I had saved that article. As always before you invest always Do Your Own Due Diligence.
tears should read “years”.
We should go back to the 50 day on the S&P or about a 100 points to near 2180.
Eight Years After an Epic Banking Crash, America’s Biggest Threat Is Still Its Banks
In 1934 the U.S. had 14,146 commercial banks holding insured deposits. By 1985, that number had barely budged, standing at 14,417. Then came the Bill Clinton administration in the 1990s and its reckless and unprecedented banking deregulation which allowed the giant Wall Street banks to swallow up, or drive out of business, thousands of banks across America. According to the Federal Deposit Insurance Corporation (FDIC), as of December 22 of this year, there are only 5,927 FDIC insured banks left in the U.S., a stunning decline of 59 percent from 1985.
http://wallstreetonparade.com/2016/12/eight-years-after-an-epic-banking-crash-americas-biggest-threat-is-still-its-banks/