RATE AND REVIEW this podcast on Facebookhttps://www.facebook.com/PeterSchiff/reviews/Dovish Speech Given by Jerome PowellThe catalyst for the rise in gold and the decline in the dollar, I believe, was the dovish speech given by Jerome Powell today in Jackson Hole. Whether or not the speech is perceived as dovishly as I believe it is, I think we ...…

What happened? Bank of America keeps a running tally of so-called “signposts” that signal a bear market coming ’round the bend. This month, the analysts checked two more off the list, bringing the total to 14 out of 19 indicators. The latest signals include the VIX volatility index climbing above 20, and surveys of investors showing that many think they will continue to go up, a classic contrarian indicator.
Eighth Interest Rate HikeAs expected, the Federal Reserve raised interest rates for the eighth time, today. The rate is now 2 to 2.25 percent, so I guess the midpoint is 2.125%. The move was highly anticipated, of course, even I expected the Fed to raise rates. At this point I had been expecting that for some time ever since the Fed first began ...…
The biggest of all BIGGER story aspects to the HPSCI Memo, in all coverage, has been overlooked by all Main Stream Media.  The Department of Justice FBI FISA request was for “Title I” surveillance authority.  This is not some innocuous request for metadata exploration – the FBI said American citizen Carter Page was a “foreign agent of a hostile foreign government”; the FBI was calling Carter Page a spy.

A great example of what we can expect can be taken from Japan. In 1989, the Japanese stock market index (Nikkei) was at 38,916 points with a P/E ratio of 60. This is almost double the valuation of the S&P 500, but if we apply the S&P 500’s current P/E ratio of 26.14 to the Nikkei in 1989 it would be at 16,954 points. Fast forward almost 30 years and the Nikkei is at 18,331 points for an imaginary total return of 8% if equal the current S&P 500 P/E ratio.


Economic effects of the September 11 attacks (2001) Stock market downturn of 2002 Chinese stock bubble of 2007 United States bear market of 2007–09 Financial crisis of 2007–08 Dubai debt standstill European debt crisis 2010 Flash Crash 2011 Tōhoku earthquake and tsunami (Aftermath) August 2011 stock markets fall 2011 Bangladesh share market scam 2015–16 Chinese stock market turbulence 2015–16 stock market crash 2016 United Kingdom EU referendum (Aftermath) 2018 Cryptocurrency crash
Our family would like to thank you for Heath’s recent financial aid award letter. However, we are very concerned with the results. Our expected family contribution dropped from $20,365 in 2016-17 to $6,987 for the 2017-18 school year, yet the award package left us with an additional need of over $8,500. The reduction in this year’s EFC is due to a reduction in assets, plus the fact that we will be sending two students to college during the 2017-2018 year. In spite of these changes, however, the amount of the current award is essentially the same as the award for 2016-17.

A few days after we reported that the investment vehicle of Sweden's most powerful family, the Wallenbergs, has begun preparations for the next global crisis, concerns about the future have spread to one of China's largest state-backed asset manager which runs about HK$139 billion ($18 billion) in assets, and which said it was preparing to sell shares in as many as 30 stocks on concern that valuations worldwide have peaked. Read More
Regardless of their exact beginnings and ends, bear markets typically have four phases. In the first phase, prices and investor sentiment are high, but investors are beginning to take profits and exit the market. In the second phase, stock prices begin to fall quickly, trading activity and corporate earnings fall, and positive economic indicators are below average. Investor sentiment also gets more pessimistic and some investors panic. Market indices and many securities reach new trading lows, trading activity continues to decrease, and dividend yields reach historic highs. In the third phase, prices and trading volume increase somewhat as speculators enter the market. In the fourth and final phase, stock prices continue to fall, but they do so at a slower pace. As investors find prices low enough and as they react to good news or positive indicators, bear markets often eventually give way to bull markets.

Yet, Karen is only one of the brilliant minds that you’ll get exposed to and have the chance to meet at the SIC. It’s going to be an intellectually thrilling event, and I hope you can be there with me to experience it firsthand. To learn more about attending the SIC 2018, and about the other speakers who will be there, I encourage you to click here.


On Tuesday night all of the speculation about the midterm elections will mercifully be over, and there is one potential outcome that is being called a “disaster” for the financial markets.  Over the past couple of years, stock prices have soared to unprecedented levels, and Wall Street has seemed to greatly appreciate the pro-business environment that President Trump has attempted to cultivate.  Regulations have been rolled back, corporate taxes have been reduced significantly, and many corporate executives no longer fear that the federal government is out to get them.  But after Tuesday, everything could be different. Read More

Early in 2018, we detailed Bridgewater's massive short bet against Europe, peaking at a record total short against the EU's biggest companies of around $22 billion. At the time we noted that, since Bridgewater is not known for picking individual stocks, the manager’s position was the result of a view on the wider economy according to James Helliwell, chief investment strategist of the Lex van Dam Trading Academy.
If we look back at the history of bear markets in the United States, then they were usually preceded by lengthy, strong bull markets.  Those bull markets encouraged most investors to pile into the stock market and into high-yield corporate bonds, with the highest concentrations close to the tops.  We can see that recently with all-time record inflows into U.S. equity funds--especially passive equity funds including ETFs--in 2017.  Thus, as each bear market begins, people have huge percentages of their money in the stock market.

One of the major indicators that a bear market may be on the way is the yield curve. While the yield curve is currently flattening out, and not inverting, by sitting at around 0.2%, it is right on the edge. When the yield curve is flat, that means that the 2-year spread and the 10-year spread for bonds (in the case of the U.S. Treasury yield curve) are around the same -- basically, that the long-term interest rates aren't much better than the short-term interest rates (which they ideally should be). Given that interest should be higher for lending the government money over a long time (giving up the opportunity to do other things with your money like invest in stocks), an inverted yield curve is a sign of danger and a possible bear market. 
Russiagate originated in a conspiracy between the military/security complex, the Clinton-controlled Democratic National Committee, and the liberal/progressive/left. The goal of the military/security complex is to protect its out-sized budget and power by preventing President Trump from normalizing relations with Russia. Hillary and the DNC want to explain away their election loss by blaming a Trump/Putin conspiracy to steal the election. The liberal/progressive/left want Trump driven from office. 
As with many other industries, the reality of supply and demand impacts every aspect of the financial market. It is predicted that in 2018 the United States Treasury will have net new issue of $1.3 trillion in treasury bonds and the national debt will continue to rise. This new influx of debt will need to be purchased by the market, but the Federal Reserve is reducing the amount that it’s purchasing – their bond holdings will decrease by 10% over the next year. International buyers will become an even more important cog in the wheel, and David comprehensively explores the global supply and demand structure on this episode of Money For the Rest of Us. You also don’t want to miss his bear market investment suggestions, so be sure to listen.
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