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. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at Stock Market Volatility. (See the Stocks section.)
Spot silver briefly touched $18.90 per ounce on Monday, before settling to $18.60 in New York after-hours trading. I expect silver to out-perform gold and and platinum in the next few weeks. (The current silver to-gold ratio of 89-to-1 will probably be somewhere more like 85-to-1 by the end of April.)
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Stocks (Stock Market Volatility):
This week’s 3.200 point drop in the Dow Jones may very well be the beginning of a scary and lengthy roller-coaster ride. Thusfar, there have been $6 trillion in equities market losses. European and Asian markets were also sharply lower. And, as I’ve mentioned before, commodities markets took a precursor hit. Mark my words: The main effect of the Wuhan coronavirus will be more economic, rather than on public health. This is still just a nascent pandemic. Yes, a lot of people will die, but the lethality of the current strain is reportedly not too much worse than a seasonal flu. However, the supply chain disruptions that it spawns will be much more lethal to corporations. We can expect spot shortages of many products (especially N95 masks and pharmaceuticals, nebulizers, and oxygen concentrators), supply chain disruptions that will idle all major car, computer, and aircraft makers, spot and futures price collapses of many industrial commodities, soaring precious metals prices, renewed interest in cryptocurrencies, bankruptcies of some airlines and many cruise ship lines, and yes, more scary drops in equities markets. Look for the biggest drops in stocks of American and European manufacturers that depend heavily on China for their component parts. Meanwhile, look for the biggest stock gains for companies that will benefit from people “coccooning” at home: e-commerce companies, online streaming movie services, et cetera. In a nutshell: Go short United Airlines, and long Amazon and Netflix! – JWR
Economy & Finance:
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OilPrice News reports: Energy Stocks Slammed By Coronavirus Hysteria
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I wonder… Did this 2018 article’s prediction turn out well? 10 hot vehicles most likely to increase in value, ‘terrifying the neighbors’. In the case of the 2018 Dodge Challenger SRT Demon, the folks at Kelley say the resale value is indeed strong. But presently my bet would be on pre-ordering one of the upcoming 2021 Ford Broncos. I expect them to be selling for over their list price for a couple of years!
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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 closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be only about commodities and precious metals. Thanks!