Thursday, July 24, 2014

Ask The Expert with John Williams

A great interview with John Williams of Shadowstats. A through read of his work is not only enlightening, as to the machinations of the economic indicators, but will help frame much of the current economic environment.

Gold And Silver Have Still Not Found A Bottom- At Least In One's Traders Opinion

Saw the below video from Kitco, and in the interest of broadening your view I thought I would share.


That said, my take is that the gap on the GLD will likely be filled but that the relative strength in the precious metal equities versus the commodity (for instance see RGLD) suggests we see better forward pricing on the metals. Additionally, there is some overhead resistance from trapped sellers that still need to be worked through.

Wednesday, July 23, 2014

Pull Your Money Funds Now

The SEC has approved new money market laws that could prevent you from accessing your money. As Reuters reports......


U.S. securities regulators adopted rules on Wednesday designed to curb the risk of investor runs on money market funds, capping the end of a years-long heated debate between regulators and the industry dating to the financial crisis.

The SEC's rule will require prime money market funds to move from a stable $1 per share net asset value, to a floating NAV. It also will let fund boards lower redemption "gates" and fees in times of market stress.

I had thought the reason for money markets to exist was because of the fact they were liquid instruments and you could access the money at any time. Guess not anymore. I wonder if this is another step in the move towards 'preventative' capital controls.

The Contrarian's Contrarian

This reminds me that I have to get back to my roots

Central Planners, monetary Hijinks, Crony Capitalist and the Times in Which We live

An overall great and informative interview.

Earnings Have Never Predicted Future Stock Prices

Instead watch the supply and demand......