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The risk reward balance for the markets

Cory
April 17, 2017

There is a lot of nervousness around the US markets but you could argue this has been true throughout the recovery. Brad William, Founder of Brad Williams Financial, shares his views on the health of the US equity markets and the risk reward factors that investors need to consider. Safe haven assets are also discussed in the context of where to be protected.

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Discussion
28 Comments
      Apr 17, 2017 17:04 AM

      Govt and Fed ……..thieves…..period…….

    Apr 17, 2017 17:52 AM

    GDXJ turned up precisely at a pitchfork support this morning (for those who can view a 2 hr chart):

    http://stockcharts.com/h-sc/ui?s=GDXJ&p=120&yr=0&mn=4&dy=0&id=p63954696399&a=511226861

        Apr 17, 2017 17:16 PM
          Apr 17, 2017 17:17 PM

          ‘That’s The Most Horrible Thing I’ve Ever Heard’
          Apr. 14, 2017

          “One day, someone is going to look back at the proliferation of ETFs and wonder how everyone could have been so naive.”

          “Outside of some geopolitical catastrophe, ETFs almost unquestionably represent the biggest risk to markets – and this risk is at the structural level.”

          https://seekingalpha.com/article/4062520-thats-horrible-thing-ever-heard?ifp=0

            Tad
            Apr 17, 2017 17:06 PM

            Hmmm… Just been reading about this; too much cash going into these things it seems.
            Usually, thats not a bad problem to have. I’m obviously a bit late to notice this.
            The Sprott one is good in that it is not Market-Cap weighted (like most) ….but looks at fundamentals and the stocks’ performance according to the SPROTT template. And it’s small enough, at the moment. I may swap eggs into that instead.
            Traditionally, though it was the size of the bigger ones that moves markets up and guarantees liquidity. It goes both ways I guess.
            BUT, all the individual gold stocks held withing the Van Eck ETF will take a beating if the thing is used as a ping pong ball by Hedgies & Mutuals to gain short term exposure or ‘MOVE’ the markets cynically.
            A 20% redemption in a week is over $1B. That’s gonna really hurt junior stocks. It would hurt stocks in any sector though… In any market.
            Don’t you think they will just put weekly time limits on redemptions in place (like REITS) to make it an investment vehicle rather than a trading one?

            Apr 18, 2017 18:53 AM

            My preference is the Sprott fund as well Tad. Good thoughts on these fund redemptions tanking many mining stocks as of late. I believe it also explains why GDXJ has been acting so strange in the face of rising metals prices. Ironically, the unpopular stocks that have small positions in ETFs, or in most cases, no position at all, have done pretty good lately. 😉

    Apr 17, 2017 17:05 AM

    Gold looking good to me…………

      Apr 17, 2017 17:49 AM

      war drums are beating in Korea……Trump just sent two more air craft carriers for Kim to observe……

    GH
    Apr 17, 2017 17:17 AM

    Simon Black: The banking industry abuses its customers worse than United Airlines

    https://www.sovereignman.com/trends/the-banking-industry-abuses-its-customers-worse-than-united-airlines-21365/

      Apr 17, 2017 17:02 PM

      Simon Black exaggerates in most of his articles and podcasts. He makes U.S. banks seem worse than they are and international banks better than they are.

        GH
        Apr 18, 2017 18:49 AM

        You’re probably right. I don’t read him often.

        But the abuses of the banks are certainly huge. I believe the examply of wire fees is valid, no? Not to mention outrageous ATM withdrawal fees.

          Apr 18, 2017 18:03 AM

          GH,

          My problem is that not all banks are like Simon Black says. There are over 5,000 banks in the U.S which offer different types of checking accounts with different fee structures. I hear too many people complaining about their bank. Most times people are hit with fees because the customer did not bother to read the checking account terms. That is their fault, not the banks. And of course if they do not like the terms they can change to another bank or even to a credit union.

          Here is one example in which some person made a comment on that Simon Black article which was posted on ZeroHedge.

          “The other day, the balance in my checking account was $12.45…then the monthly “maintenance fee” of $10 came out. In Soviet America, banks robs you.”

          What moron would think that you can just have $12.45 in your checking account and not get hit with a monthly low balance fee? Banks are not in the business of doing things for free.

          I keep hearing from ALT media people, like Simon Black, that if you try to withdraw a large some of cash that you are treated like a criminal. Most times that probably is not the case. I heard plenty other people comment that they had no real problem withdrawing a large amount of cash from their bank. How much of a problem it is to withdraw a large amount of cash depends on the customer, the bank, the bank manager and the bank teller.

          Simon Black and others complain how banks received a government bailout. The fact is most banks did not receive a government bailout but the ALT media sure makes it sound like most of them did when really it was mostly the large banks.

          Simon Black in that article lumps all banks together making it sound like they are all guilty when they are not. Every article I have read from him which dealt with U.S. banks or the FDIC, I have found that he misrepresents the facts and leaves certain details out that misleads people. I think sometimes he does it intentionally.

            GH
            Apr 19, 2017 19:49 AM

            Good points, JMiller. I always appreciate that you’re a stickler for accuracy in detail.

    Apr 17, 2017 17:54 PM

    SPFF. Preferred stock in 50 US and Canadian banks. Pays 7% divies a MONTH! In order to lose all your money all 50 banks would have to go belly up. Not gonna happen. I buy monthly for me and my son’s retirement account. Son just turned 5.

      Apr 17, 2017 17:07 PM

      7% a MONTH……..?

        Apr 17, 2017 17:09 PM

        That isn’t one of those Bernie Madoff investment plans…is it….?

    Apr 17, 2017 17:12 PM

    OOTB. Google the ticker symbol “SPFF”. Pays 7%.

      Apr 17, 2017 17:19 PM

      Ok, thanks , I will…..appreciate the info……….

        Apr 17, 2017 17:24 PM

        Jason…….it says………12 month dividend…7.05% at yahoo

          Apr 17, 2017 17:26 PM

          still not to bad dividend either way…….

            Apr 17, 2017 17:28 PM

            but, since the banks steal the money ,,,they should pay 7% a month…

    Apr 17, 2017 17:37 PM

    Pays monthly. Bring up a stock chart and check the divie schedule. I got payments in Jan., Feb., and March.

      Apr 17, 2017 17:26 PM

      I see what you are talking about……….thanks for the follow up……..

        Apr 17, 2017 17:59 PM

        Yup, roughly 7%/year paid monthly…

        https://www.globalxfunds.com/funds/spff/

          Apr 18, 2017 18:55 AM

          Nice work. Just as a heads up Mandalay Resources pays 6% annually in a Dividend, but it is paid quarterly.

            Apr 18, 2017 18:56 AM

            …..I’d rather have the 6% Dividend from Mandalay Resources at present, that can also participate in a rising metals environment over the next 2 years.