Monday, July 24, 2017

Central Banks are manipulating Interest Rates and Stock prices

Click here if the above video does not play

Thursday, July 20, 2017

Missed opportunity in buying Bitcoins

Bitcoin speculation
“I would be reluctant to hold bitcoin and other cryptocurrencies, but I acknowledge that it was a mistake not to buy bitcoin after they had dropped to around $200-300."

"In my opinion, the people that are really involved in the bitcoin market are the same people that are involved in stocks like Snap, Facebook, Amazon…they are individuals who are involved in the more speculative side of the market."

Government regulations on Bitcoin
“If they become big, it’s not ‘maybe,’ it’s ‘for sure’ the government will regulate them. As soon as something becomes profitable in the U.S., it is subject to regulation and taxation.”

Wednesday, July 19, 2017

Gold prices at an attractive level to buy

On Gold
"We were up last year by around 9% and this year we’re still up 6-7% so it hasn’t been such a bad currency and this is against the U.S. dollar. My view is, of course, the [gold] price will eventually go up much higher. Around this level, it is an attractive opportunity to accumulate."

US Federal Reserve
"I’d like to see the day when they reduce the balance sheet and the market reaction because if stocks go down…I think the Fed will be very reluctant to increase interest rates and even more reluctant to reduce the balance sheet"

“The whole exercise that central banks have begun of accumulating assets on the balance sheet, it cannot end well. It will end in a disaster, we just don’t know when.”

Asset Price Bubble
"We have inflated asset prices and if the asset inflation comes to an end and asset prices decline, I think it will hurt the system.”

US Dollar
“I don’t think anyone should be positive about the U.S. dollar in the long run. I think it will go down against gold.”

Monday, July 17, 2017

Is the time to panic upon us ? Probably not yet

My friend Michael Gayed at Pension Partners recently wrote that many market participants seemingly were simply forgetting that volatility mean-reverts, and that stocks tend to go down much faster than they go up and that “the time to panic is upon us.”

I am not sure that “the time to panic is upon us,” but even if the US stock market were to move higher a change in leadership would not surprise me with FANG type of stocks no longer advancing.

Don’t forget Charles MacKay’s observation that,
“Men, it has been well said, think in herds; it will be seen that they go mad in herds while they recover their senses slowly and one by one.”

Tuesday, July 11, 2017