The reality of loss will be more than most can stomach and sentiments of “time in the market” will go mostly unheeded. This is, of course, why many of the coveted millennial investors have already rejected much of the Wall Street rhetoric after watching the devastation that wrecked their parents over the last 15 years.
Wow, did the dollar move down this week! It dropped more than it has in quite a while. It fell 1.3mg gold, or 0.1g silver, but what happened to the fundamentals?
As DB's Jim Reid points out, it was definitely not the easiest start to the year with many global equity markets suffering from their worst January in a post-Lehman world.
November-January is the strongest consecutive 3-month period of the year. During this period, the S&P 500 is up 66.7% of the time with an average return of 3.35% going back to 1929. However, not this year. Both the November-January & the January Barometer are flashing bearish signals for 2016.
Sometimes its difficult to see the forest for the trees........
Many were excited on Thursday to see a spike in the silver price. We were not quite so exuberant, and in 13 hours the market took back the entire move and more.
This week, the gold-silver ratio promptly moved up +2.3%. As readers will recall, we have been calling for a ratio value over 80 for a while.
For example, the world population continues to grow, good farming land with proper soil management is a finite resource, and the world is going to need more food in the future.
The last two years rents have been rising primarily due to supply and demand issues.
Imagine if Casinos told you in advance what the next card from the deck in a game of Blackjack was going to be?
For a long time, we called for a big drop in the silver price. It stubbornly did not, or when it did drop it soon recovered. In the end, we were right and the silver bulls were wrong.
We exposed the ugly truth below the surface of Santa's rally yesterday, but today it just got even more fantastical...