Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on U.S. Creditworthiness. (See the Economy and Finance section.)
Precious Metals:
First off, there is this, at Seeking Alpha: Gold Weekly: Too Late To Ride The Wave?
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Also there, Scot MacDonald asks: Is Silver Ready For Takeoff?
Stock Markets:
Reader Diane C. suggested this: Here’s What Historically Happens to Stocks When Bull Markets End. JWR’s Comment: This shows the wisdom of placing automatic Stop Loss sell orders with your broker , or online brokerage system. Do so soon, so that you can sleep well at night! Consider that your First Exit, in a crisis. The Second Exit–one that most people won’t bother to take–is what I call: “The Exit Through The Gift Store.” By this I mean: Take the cash generated from liquidating your equities and reinvest most of that into something tangible and practical. Productive rural retreat land is at the top of my list of tangibles.
Commodities:
Agriculture Boom Now in the Making, Says Jim Rogers
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Next, at Silver Doctors: The Forgotten Trade In Commodities Could Be THE Comeback Trade Of 2018
Economy and Finance (U.S. Creditworthiness):
Reader H.L. spotted an interesting piece at Zero Hedge. It is: China Downgrades US Credit Rating From A- To BBB+, Warns US Insolvency Would “Detonate Next Crisis”. JWR’s Comments: I predict that this pivotal news will get only a 30-second mention on CNBC and elsewhere in the mainstream media. While the timing of China’s announcement has political overtones, it is actually well-founded. Private credit rating agencies like Fitch have issued similar warnings. Be ready for a debt collapse, followed soon after by a Dollar collapse. As I’ve written before: It is high time to gracefully get out of U.S. Dollars and into tangibles.
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Now, moving on to this at The Balance: Top Nine Economic Predictions for the Next 10 Years
Tangibles Investing:
Investopedia: How To Profit From Inflation. (Note: Has auto-start video.)
Provisos:
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News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!
1) Our NIIP — our Net International Investment Position — is defined as all the debt we owe to foreigners plus US assets they own MINUS the debt they owe to us and foreign assets we own.
2) What the News Media has NOT told the voters is that our NIIP PLUNGED during Obama’s 8 years. We went from owing $2 Trillion to over $8 Trillion.
https://www.bea.gov/newsreleases/international/intinv/2017/intinv217.htm
3) This is why I crack up laughing when Democrat politicans criticize Trump for attacking “our free press”. Our free press was destroyed a long time ago –by the power of money. What we have is a pack of prostitutes for the Rich who do the functional equivalent of lying to voters in order to advance the goals of their Rich masters. Lying by Omission is just as effective as broadcasting deliberate falsehoods.
4) Trump has his shortcomings but he really hit the nail on the head when he said our giant news monopolies are Enemies of the American People. Utter SCUM who bleat about Black Lives Matter — while hiding the fact that the life savings of black Americans fell by HALF from 2007 to 2013. Courtesy of the Big Bailout crafted by the Democrat controlled Congresses of 2007-2010.
Why is Bernie Madoff in jail?
Stop loss sell orders are a wonderful idea, but NOT put on with your brokerage firm. Keep them on a spreadsheet or on a website designed to track them and which will notify you immediately if a security closes at or below your stop. The reason for this is that in an algorithmic trading-driven “flash crash,” your securities may sell even though the market bounces right back up. I have had this happen to me and it isn’t pretty. Note the site http://www.tradestops.com — I use them but am not connected to them in any other way.
They will notify me if one of my securities closes at or below the stop I have chosen, and I will then sell it at the open the next business day.
Bottom Line: trailing stops can allow you to keep dancing while the music is playing and then save your posterior as the market drops — if you use them appropriately.
The number of people who are going to be destroyed by the algorithmic devices which they depend on for their financial survival is going to be astronomical.
The markets are open 24/7. You have to sleep sometime.
The insiders provide you with the software you use to make your trades. To suppose that they do not know more about its functionality than you do is simply unlikely at best. They know which reaction is triggered by which stimulus and they have unlimited funds to trigger reactions with.
Not only are you playing their game at their table, but you are also playing by their rules– which they are free to change any time they want– right in the middle of the game.
When the crash comes, the rules will be changed overnight or on the weekend and everyone will be starting over with what they have left in their pockets.
Not speaking to you personally but to a generic “you” in the market. Come out of her, my people. Doesn’t get much simpler than that.
The banks were made whole after the flash crash at the expense of retail investors. Investment houses were allowed to keep the assets they purchased at the bottom but retail investors had them stolen back
Stipulating knowledge of a company and its future prospects: A large reduction in stock value may provide a good buying opportunity.
Never forget Rothschild’s “Buy when the blood is in the streets.”
But pick and choose wisely.
Yes, don’t forget, that “Cash” is a position.
Having funds available to deploy when the time is right can prove very useful. Don’t fall victim to the idea that you _have_ to be invested in something all the time. As mentioned, the time to buy is when there is blood in the streets. Making sure you aren’t tied up into a position at that time is very good advice.