Forward Guidance: Marc Lichtenfeld on Finding Value in This Expensive Market

By Samuel Taube On this week’s episode of Forward Guidance, Marc Lichtenfeld joins us to discuss finding value in today’s mature bull market. I start by asking Marc if investors should have a different outlook today than they did five years ago. He’s quick to point out that many investors do have different outlooks, because they entered the market only recently. In Marc’s view, many investors still have deep scars from the late-2000s financial crisis. Some are still hesitant to invest in stocks. Others are still avoiding it altogether. However, Marc does acknowledge that the current bull market is in its ninth year, which is quite mature by historical standards. He notes that the bull market might go on for longer… or it might not. Thus, he recommends paying attention to valuations, using trailing stops, and practicing discipline when entering and exiting stocks. In light of the recent pullback in … Continue reading

India: Cash is Back

By Jayant Bhandari But the Crisis has Deepened and has Become More Entrenched (Part XIV) Nobody for President On 17th July 2017, India will elect a new President through a vote of the elected representatives. The two real choices are between Ram Nath Kovind and Meira Kumar. Afraid of looking completely ignorant, I asked a few people who Kovind is. No-one knew of him and people only vaguely remembered Ms. Kumar. Adults and juveniles have been arrested in different parts of India for celebrating Pakistan’s victory over India in a recently held cricket match. They have been charged with sedition, a charge that has serious legal ramifications and can potentially send these people to prison for life. With the British gone for 70 years, India’s laws and institutions have lost all mooring to their rational anchors. Photo credit: Amnesty India India will get a complete nobody as its next President. … Continue reading

The Morgan Report’s Weekly Perspective with David Morgan

By David Morgan The Morgan Report’s Weekly Perspective | The Morgan Report’s Weekly Perspective is our free e-newsletter. Our free e-newsletter will keep YOU in the top 3% of the Informed, the Awake, and the Aware. Join our Free weekly e-letter… I’ve Been Helping My Subscribers Weather the Current Economic Mess. Now I Invite You to Join My Growing Circle of Successful Investors. The Morgan Report is all about YOU and how you can build and preserve Wealth for generations to come. We know it can sometimes seem a daunting task to protect your assets and preserve or grow your wealth. Over 15 years ago, a small group of us started The Morgan Report and formed an exclusive membership organization to promote personal freedom, an honest money system, free market wealth accumulation and asset protection. Thus was born The Morgan Report – since then we’ve helped 11,000-plus members scattered … Continue reading

Why Citigroup Stock Is Rated a “Hold With Caution” Today

By Rob Otman Citigroup (NYSE: C) is a $185 billion company today. Investors that bought shares one year ago are sitting on a 60.32% total return. That’s above the S&P 500’s return of 18.09%. Citigroup stock is beating the market, but does that make it a good buy today? To answer this question, we’ve turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company. Our system looks at six key metrics… [iu-adbox] ✗ Earnings-per-Share (EPS) Growth: Citigroup reported a recent EPS growth rate of 22.52%. That’s below the banking industry average of 189.86%. That’s not a good sign. We like to see companies that have higher earnings growth. ✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the banking industry is 26.73. And Citigroup’s ratio comes in at 12.72. It’s trading at a better value than many of its competitors. … Continue reading

Has the Fed Lost Control of Interest Rates?

By Kristin Orman Last month, the Federal Reserve raised its benchmark interest rate for the second time this year. It was the fourth quarter-point bump since interest rates were slashed to near zero in response to the Great Recession. Today, the federal funds rate stands at 1% to 1.25%. The move reflected the central bank’s confidence in the U.S. economy. And higher interest rates should be good for savers. But after years of earning nothing in their savings accounts, the interest rates they receive on deposits have barely budged. And in one case, savers are actually getting a lower rate of return. As today’s chart shows, the yield on the 10-year Treasury actually dropped after the last month’s hike. And it fell after the Fed raised rates the last three times, too. The yield on the 10-year Treasury is actually less than it was six months ago. Below, I’ll show … Continue reading

Weekend Show – Sat 1 Jul, 2017

By Cory Recapping The First Half Of 2017 – Gold, Markets, and Politics Download audio file (0701-KER-Full-Weekend-Show.mp3) First a very happy Canada Day to all of our Canadian listeners and an early happy Independence Day for everyone in the US. As we turn the corner into July it is a great time to look back on the first half of this year. On this weekend’s show we review the markets, gold, and investments in general all with a look ahead to what the trends are for the rest of the year. We always love to hear your thoughts on the show so please reach out to me at Fleck[at] Segment 1: Rick Rule kicks off the show by recapping the metals complex in terms of gold and precious metals stocks in H1 2017. Segment 2: I continue my conversation with Rick Rule discussing the GDXJ rebalancing and previewing the upcoming … Continue reading

Gold is Weak in Real Terms

By Jordan Roy-Byrne CMT, MFTA Intermarket analysis is a rather new field in technical analysis but one of my favorites because it is critical in understanding Gold. Asset classes like stocks and bonds are enormous and aren’t as influenced by as many factors as Gold. Trends in stocks, interest rates, commodities and currencies impact Gold in one way or another. We have written many articles over the years analyzing Gold with respect to its outlook and standing in real terms. Gold, when in a true bull market outperforms against all currencies and the global equity market. Unfortunately that is not the case at present. In real terms, Gold is weak, getting weaker and it could be a reflection of the metal’s worsening fundamentals. In the first chart we plot Gold along with Gold against foreign currencies (FC) and Gold against stocks (inverse). While Gold (in nominal terms) has yet to … Continue reading

China factory surprise lifts copper price to 3-month high

By analyst By Frik Els Copper futures trading on the Comex market in New York rose for the eighth straight day on Friday on renewed optimism about growth in top consumer China and a weaker dollar. Copper for delivery in September jumped to a high of 2.7185 a pound (just shy of $6,000 a tonne) in afternoon trade, up 5% for the month and nearly 8% during H1 2017. Source: Capital Economics Chinese manufacturing data comfortably beat expectations in June with Beijing official manufacturing PMI rising to 51.7 from 51.2 (a reading above 50 indicates improving operating conditions) against predictions of a decline for the month. Business conditions were boosted by a pick-up in both exports and domestic demand which rose to a four-month high. Concerns about deflation and downward pressure on commodity prices also eased with the underlying price components of the gauge reaching levels last seen in December. … Continue reading

Work is for Idiots

By MN Gordon Disproportionate Rewards The International Monetary Fund reported an unpleasant outlook for the U.S. economy on Wednesday. The IMF, as part of its annual review, believes the U.S. economic model isn’t working as well as it could to generate shared income growth. Supping with the IMF (we recommend trying to avoid invitations to structurally adjusted suppers if possible. Their air of finality is reportedly unbearable). [PT] On the same day, in an unrelated interview on PBS Newshour , billionaire investor Warren Buffett offered a similar outlook: “The real problem, in my view, is — this has been — the prosperity has been unbelievable for the extremely rich people. “If you go to 1982, when Forbes put on their first 400 list, those people had [a total of] $93 billion. They now have $2.4 trillion, [a multiple of] 25 for one. This has been a prosperity that’s been disproportionately … Continue reading