Here are the latest news 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, I’m repeating my warning to set Stop Loss Orders, before the stock market becomes a pig slaughter market. (See the Stocks section.)
Precious Metals:
First off, there is this from Arkadiusz Sieroń: One Year after QT Started, Gold Price Still Unmoved
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Gold Remains Firm Despite Stronger U.S. Dollar
Economy & Finance:
At CNBC: Strength of the US economy is unequivocal, expert says
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Ex-Fed chief Greenspan: This is the tightest labor market I’ve ever seen
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Charles Hugh Smith: The Coming Inflation Threat: The Worst Of Both Worlds
Stocks (Stop Loss Orders):
Fair warning, once again: In today’s mega-bubble market, I cannot overemphasize the importance of placing stop loss orders on your individual shares, mutual funds, and stock ETFs. I first firmly suggested this approach, back in 2017. Unless you have given your broker (or broker-bot) a standing order to sell your position once a stock declines 8%, then you are likely to get burned, and burned badly in the next 18 months! Remember the old market adage: “Bulls make money, and bears make money, but pigs get slaughtered.”
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Now, on to this at Seeking Alpha: QQQ: The Netflix Effect
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Some analysis from Chris Ciovacco: 199 Days After The Peak: 2000 Vs. 2007 Vs. 2018
Cryptos:
Sentiment Speaks: Is Bitcoin Ever A Buy-And-Hold?
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Global AML Watchdog to Release Crypto Regulations By Next June
Tangibles Investing:
12 Insanely Expensive Guns We All Wish We Could Buy
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Rock Island Auction Company Totals $20 Million in Sales at 2018 September Premiere Firearms Auction
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!
The use of stop loss orders is extremely important. However, it is a mistake to put them in your roker’s computers. If we get a “flash crash.” where the price of a security — stock or ETF — fluctuates significantly in a very short time frame — down, then us — your loss orders will be triggered and you will be sold out at VERY disadvantageous prices. The way around this is to either create your own spreadsheet or use a website such as tradestops.com. (I have no connection with them.) If a stock, ETF, or mutual fund closes at or below your stop, you are notified by email and/or text, and you then sell the next day. Of course, you need the discipline to do it and not second guess your strategy. Stop losses can prevent the really significant losses that destroy large parts of your savings. They also can let you sleep well while staying in a market longer than you would otherwise.
“Stocks (Stop Loss Orders):”
A couple more stock market adages to add to the pig quote above:
“It’s not knowing when to buy, it’s knowing when to sell.”
“The market doesn’t give you many opportunities to sell a top.”
Alen Greenspan is one of the great villains of the 20th century. This isn’t an adage but it should be.
I’ll take the other side of the trade from Charles Hugh Smith; deflation is what’s in store for us. The “Great Depression” problem wasn’t a lack of money, people still had gold and gold backed dollars, it was a lack of things to buy that was the real problem. It will be much worse if it happens again since nobody knows how to do anything. The deflationary forces from ’08 are still howling at the door even after all of the ZIRP and QE. Importantly, if you know how to make things from raw materials that you gather yourself, very useful things, with your own hands, you will do handsomely in a deflation scenario. Weapons, bullets, fuel, and food come to mind and the ability to keep motors running.
“Strength of the US economy is unequivocal, expert says”
fiat debt international reserve currencies aren’t really economies ….