Bear Market

Albert Edwards Sees Shades Of 2007 In The Biggest Risk Facing The US Consumer

"The only thing keeping the US out of recession is the US consumer (see chart below). It is difficult to say consumption is driving the economy forward ? rather it is like a woodwormridden crutch creaking under the strain of holding up a deadweight economy. This  recovery ? the fourth longest in history ? is surely nearing its end."

Jim Rogers Explains What He Is Doing Before "The Next Time The World Comes To An End"

One week after RealVision brought us the latest Jeff Gundlach interview, in which the DoubleLine bond king explained why he is now "100% net short", on Friday Grant Williams interviewed Jim Rogers, in which George Soros' former partner (the two co-founded the Quantum Fund in 1973), is about as gloomy, warning "the next time the world comes to an end, it's going to be a bigger shock than we expect."

GoldCore's picture

Possibly, the most vitriolic, hateful and divisive election in U.S. history is set to be witnessed and this will likely lead to considerable volatility in markets and should see the dollar come under pressure. Seasonally gold is entering the sweet spot with the Autumn being gold's best season and with September being gold's best month (see chart)

Jim Grant: "This Will Turn Out To Be Very Bad For Many People"

"The stock market is at record highs and the bond market is acting as if this were the Great Depression... the Fed is virtually a hostage of the financial markets. When they sputter, let alone fall, the Fed frets and steps in... the Fed is justified in that belief because it is responsible to a great degree for the elevation of financial asset values... and to me, gold is a very timely way to invest in monetary disorder."

Bulls, Bears & The Broken Clock Syndrome

“Put simply, most apparent “opportunities” to obtain investment returns above zero in conventional assets over the coming decade are based on a misunderstanding of valuations, total returns, and historical yield relationships. At current valuations, virtually everything is priced for a decade of zero. The unwinding of these speculative extremes is likely to be chaotic, and will likely occur over a shorter horizon than investors imagine."

BofA Looks At The "What If" Scenario For Bonds: Find A Surprising Result

One of the big fears among the bond market, where most participants now openly admit there is a "bubble in credit", is that an unwind in global bond yields would lead to substantial losses.  To test this assumption, Bank of America's Ralf Preusser looks at the "what if" scenario, namely what would happen to total returns should government yields fully reverse their 30 year historical evolution. What he finds is surprising.

Global Stocks Drop, US Futures Down As Dollar Rebound Halts Longest Oil Rally In Years

European, Asian stocks and S&P futures all fell in another quiet, low-volume early session. With oil entering a bull market yesterday, and set for its longest run of gains in 4 years after, overnight crude stumbled, and reversed early gains, falling for the first time in seven days driven by rebound in the dollar which gained versus all G-10 currencies with commodity currencies underperforming.

How The East Coast Is Getting Rid Of Its Gasoline Glut

With the East Coast at gasoline stroage capacity, and quietly transporting unwante excess gasoline to other parts of the country, it is no longer accepting inbound cargoes.  The products tanker Torm Gyda will be open for charter Aug. 21 at El Palito, Venezuela, after discharging a cargo that was diverted from N.Y. Harbor.

US Futures Rebound, European Stocks Higher As Oil Rises

The summer doldrums continue with another listless overnight session, not helpd by Japan markets which are closed for holiday, as Asian stocks fell fractionally, while European stocks rebounded as oil trimmed losses after the the IEA said pent-up demand would absorb record crude output (something they have said every single month). S&P futures have wiped out almost all of yesterday's losses and were up over 0.2% in early trading.

James Grant: Negative Interest Rates Will End... Badly

“Radical monetary policy begets more radical policy... It seems to me, at some point, markets or voters will put a stop to this.” If and when that time comes, Grant notes that investors will be looking for physical stores of wealth, explaining "the case for gold is not as a hedge against monetary disorder, because we have monetary disorder, but rather an investment in monetary disorder."