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’s focus is on Stock market turbulence. (See the Economy & Finance section.)
Precious Metals:
First up, from Clint Siegner: How The Midterm Elections Might Affect Gold And Silver Prices
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Palladium Spikes to All-Time High: The Long View
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Money Managers Slash Bearish Positioning In Gold
Economy & Finance:
From Wolf Richter: It’s the Banks Again. “US bank stock index down 17% from January. EU bank stocks crushed, crushed, crushed since Financial Crisis.”
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Three reasons so many Americans are getting the hell out of of the northeast. (Thanks to H.L. for the link.)
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At Zero Hedge: ZIRP Blowback: Savers Flee Banks’ Zero Interest Deposit Accounts
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A piece worth reading by Brandon Smith: Trump vs. The Fed: When Markets Crash, Who Is To Blame?
Stocks & Bonds:
Chinese stocks break a two-decade trend, and that could signal more downside. The Shanghai Composite is down 35%. Their ongoing collapse is expected to spill over into the U.S. equities markets. Be ready. (Hint: Got Stop Loss?)
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Dow drops more than 300 points after disappointing earnings from Caterpillar and 3M
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And at Seeking Alpha: Will The U.S. Stock Market Enter A Bear Market In Mid-2019?
Tangibles Investing:
This 2015 article in The Prepper Journal archives has some good advice: Best Bug out Vehicles You Can Actually Afford
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Another 2015 article, at Ballistic: Mike Penhall’s 1986 4Runner: The Ultimate Budget Bug-Out Vehicle
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
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!
I’ve been saying that something is wrong with Deutsche Bank. It holds the world’s largest derivatives book. The question remains, is the risk systemic?
The KBW chart shows a double top. The current pullback is either a huge problem or the usual resistance upon reaching prior highs. A pullback here is the norm but a failed double top is usually an indicator of a massive sell-off. Could go either way but the fundamentals are where to look.
On the macro front, the old banking system is under enormous pressure. This pressure is from several places but can be summed as; we don’t need them anymore. Crypto, FinTech payment systems, Localized ‘wallets’ on phones and other devices, and less and less people using paper all make having huge buildings with tens of thousands of employees seem a little silly, and it is.
The destructiveness of bailouts goes far beyond money spent and the psychology of zero consequences. Industries of all kinds go extinct. Failure forces innovation. The nimble and smart make changes, sometimes revolutionizing whole economies. Let them fail. It’s the best thing we could for our future. I say again, we don’t need them. Stop propping up the horse and buggy industry!
And on a side note, half, more or less, of the world’s population are middle men in one form or another. The banks are no exception. Middle men do not take kindly to being cut out.
Yes the risk is systemic because of the wide range of banks and institutions on the other end of all those derivatives.
“The question remains, is the risk systemic”
(laugh) the system itself is the risk. not to the owners – lots of laws and practices protecting them – but to the rest of us. that’s the whole point of the system.
On the article about people moving out of the Northeast, is that some of them are moving into NC where I live. What is so bad about that is, they are bringing their liberal ideals with them and changing our state from red to blue and our state is becoming like the place they left from.
That is what the communist democrats from California did to Nevada…
“they are bringing their liberal ideals with them and changing our state from red to blue”
stop migrants, build the wall.
Randy;
This is happening country wide where folks moving from the over populated liberal states escaping what they have helped to develop and taking just what they’re escaping and bringing their liberal politics with them.
We saw this in my old neighborhood in the Eastern Sierra where I located in 1974 and it is visible in our new location in the Redoubt where we relocated to in 2015. We came with strong conservative and christian values and found the same.
VOTE and have your friends and locals vote in every election.
I think my original comments were eaten by my computer. All the major indices are 3-5% away from their 65 day moving average. Remember we can have 300 to 500 point down days nowadays.
There is no harm in lightening up. The market looks forward and begins its correction before all the bad news is out. The headline on MarketWatch today reads “New-home-sales plunge to a near-two-year low as housing picture deteriorates.”
Put in stop loss orders if you think they will help.
Am having problems with my computer and can’t get comments up. One last try.
The markets are looking very weak and are only 3% away from their 65 day moving averages. There is no harm in lightening up. We don’t have to wait till 2019 for a serious down market. It’s unfolding now.
Put in stop loss orders if you think they will help.