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, I’m issuing a U.S. stock market crash warning. (See the Stocks section.)
Stocks (Crash Warning):
The New York Stock Exchange just recorded its 71st “all time high” trading session since the November 2016 Presidential election. The market is now essentially stair-stepping upwards. The P/E ratio of the Dow Jones stocks now stands above 31 to 1. There have only been two times since the early 1880s that U.S. stocks have been so grossly overbought: Just before 1929 stock market crash and just before the 2000 “dot.com” bubble implosion. Consider this an earnest stock market crash warning. It is now very likely that U.S. stock markets will drive into a mountain, in a rocket-propelled vehicle that lacks an Oscillation Overthruster. It is that time, folks: “Eject, Bukaroo, Eject!”.
I now strongly urge my readers to soon reduce your stock and stock ETF holdings to less than 20% of your portfolio. Retain only a few individual stocks that you deem sufficiently crash proof. it is best to hold stock in companies that manufacture crucial consumer products. Think in terms of what will be needed by families regardless of the business cycle, as a safe haven. A few such stocks come immediately to mind. They include: Clorox (CLX), Exxon-Mobil (XOM), Fortune Brands Home and Security (FBHS), Johnson & Johnson (JNJ), Kimberly-Clark (KMB), Lamb Weston (LMB), and perhaps Medtronic (MDT). Again: Limit these stock holdings to less than 20% of your portfolio. The rest of your net worth should now be in: A.) Your primary residence; B.) A retreat property that is sitting on productive farm or ranch land; C.) Precious metals; D.) Firearms, magazines, and ammunition; and E.) Other barterable tangibles. Ideally, items A and B on this list should be combined. (It is best to live at your retreat year-round!) – JWR
China’s Yuan for Oil With Gold-Backed Futures Goes Mainstream Media. (A hat tip to H.L. for sending us the link.)
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Economy and Finance:
From leftward-leaning NPR: Next Fed Chair Will Help Determine Pace Of Interest Rate Hikes
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A headline from The Philippines: Banks further tighten real estate loans
Next, Mike Williamson (SurvivalBlog’s Editor at Large) spotted some news from the Socialist People’s Paradise of Denver. Knowing Denver politics, this isn’t surprising: City restrictions won’t let Denver mom sell home for market value
Stefan Gleason: Threats to Digital Wealth Point Up Need for Tangible Backup
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
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!