With a discussion of the bond bear market comes many moving parts. David seeks to explain the concepts while utilizing the analogy of cutting an apple. An apple can be cut in many different ways, and each method uncovers a new way of looking at the apple and its pieces – in this case, interest rates. There are two main interest components that are discussed in this episode of Money For the Rest of Us: inflation expectations and real rates (i.e. your return after inflation.)

RATE AND REVIEW this podcast on Facebookhttps://www.facebook.com/PeterSchiff/reviews/Sacrificed on the Altar of Political CorrectnessI want to spend the rest of this podcast talking about politics; in particular, what's going on with Brett Kavanaugh and his fading chances of sitting on the Supreme Court. It appears that he may be sacrificed on ...…
Last week, we shined a spotlight on a crack in the monetary system that few people outside of Switzerland (and not many inside either) were aware of. There is permanent gold backwardation measured in Swiss francs. Everyone knows that the Swiss franc has a negative interest rate, but so far as we know, Keith is the only one who predicted this would lead to its collapse (and he was quite early, having written that in January 2015).
The nearly decade-long U.S. economic expansion may look a little long in the tooth, but it is not about to end due to old age. Economic expansions need a catalyst that triggers a downward spiral of consumer and business retrenchment. The most common recession catalyst for the United States has been the collision of rising interest rates with heavy debt loads, corporate valuations that appear to have run ahead of free-cash-flow generation, or both. Add trade tensions and geo-political uncertainties, which may work to slow global growth, and it seems like the current situation has the potential to trigger a recession. Read More
The Washington Post ran a semi-humorous obituary for Smokey, labeled "Bear", calling him a transplanted New Mexico native who had resided for many years in Washington, D.C., with many years of government service. It also mentioned his family, including his wife, Goldie Bear, and "adopted son" Little Smokey. The obituary noted that Smokey and Goldie were not blood-relatives, despite the fact that they shared the same "last name" of "Bear".[36] The Wall Street Journal included an obituary for Smokey Bear on the front page of the paper, on November 11, 1976,[31] and so many newspapers included articles and obituaries that the National Zoo archives include four complete scrapbooks devoted to them (Series 12, boxes 66-67).[37]
Erik:     I want to come back to something you said earlier where you described if Treasury yields were to double that would obviously double the government’s cost of debt service. And the cost of debt service was about the same as it is now, ten years ago. But it was half as much debt. So with twice as much debt, if we go back to ten-years-ago Treasury yields, we would double the cost.
I’ll admit I was somewhat skeptical when you claimed it was the “best conference,” but after last year, I couldn’t praise the SIC enough to my colleagues. (I think they actually got tired of me talking about it.) As a principle, I try NOT to attend the same events but rather experience new and different forums. However, I couldn’t resist returning for the SIC and have once again talked the ears off my fellow traders on the desk.
The Pecora hearings, as they became known (after their lead counsel, Ferdinand Pecora), revealed the seamier side of Wall Street during the bull market: the involvement of leading firms and bankers in the manipulation of share prices, the dumping of unseasoned securities on an innocent public, the fleecing of the firms’ own clients, the preferential distribution of shares to favored friends, and so on.
Meeker provided an eloquent defense of short sales. He argued that the bears stabilize prices by providing liquidity and creating demand – by covering their shorts – in a falling market. Shorting was not illegitimate, in his view. “A short sale,” wrote Meeker, “represents a debt contracted in goods rather than money.” In this it was similar to many other business contracts.
I am primarily a value investor. For me, the algorithms serve as a way to monitor whether my view about valuations is becoming accepted by other market participants. As I have mentioned, I believed earlier this year that we were in the late stage of a cyclical bull market. The markets are finally agreeing and turning the late-cycle bull into an early cycle bear.
Goldberg said that investors who continue to hold longer-term bonds should expect fluctuations and, if they look closely at statement this year, losses in the bond holdings. But it's not a reason to sell. And most retail investors aren't in bonds for the total return (i.e., performance) anyway. But they do need to understand that the market mechanics are much stronger for stocks than bonds now.

Some may argue that a healthy labor market in the past couple of years in contrast to the dark days of the Great Recession will certainly help the broader market gain traction. After all, the unemployment rate remains below the 4% mark for the past several months, weekly jobless claims touch a 49-year low and wage growth hits the fastest pace since 2009.
The chart formation built in the course of the early February sell-off and subsequent rebound continues to look ominous, so we are closely watching the proceedings. There are now numerous new divergences in place that clearly represent a major warning signal for the stock market. For example, here is a chart comparing the SPX to the NDX (Nasdaq 100 Index) and the broad-based NYA (NYSE Composite Index). Read More
The end game is upon us. With our aging demographic and continued employment loss, the US will have to maintain a policy of easy money and more QE. This will not bode well for real estate as employment is a key factor for paying a mortgage. The kids coming out of college arent finding good jobs and this will continue. So it’s monetary debasement with rising commodity costs. For as far as the eye can see.
Arnott is founder, chairman and CEO of Research Affiliates LLC, an investment advisory firm. Dubbed the "godfather" of smart beta investing, per Money, he also is a portfolio manager for PIMCO. In 2007, Arnott foresaw the coming recession that would become known as the Great Recession, the biggest downturn since the Great Depression of the 1930s. Arnott says stocks are simply too expensive and that there is no reason for longterm investors to be optimistic.  "In the United States, there's not enough fear...One bad thing could cause a downturn...The market is just too expensive...At any point it might roll over and die," Money quotes him as saying.
Of the vast array of things that don't make sense, let's start with borrowing from future income to spend more today. This is of course the entire foundation of consumer economies such as the U.S.: the number of households which buy a car or house with cash is near-zero, unless 1) they just sold a bubble-valuation house and paid off their mortgage in escrow or 2) they earned wealth via fiscal prudence, i.e. the avoidance of debt and the exultation of saving. Read More

I wrote an article titled “Are Derivative-Based ETFs Sowing The Seeds Of The Next Financial Crisis?” for Seeking Alpha a few months ago. I concluded that ETF’s don’t do what it says on the tin (mimic the underlying asset) and that they are slowly mutating into more complex financial instruments like collateralized debt obligations, which I drew disturbing parallels with the subprime mortgage crisis. It would be therefore foolish for any retail investors to see them as a panacea to gaining exposure to virtually any asset.
The benchmark Shanghai composite closed officially in bear market — referring to a decline of at least 20 percent from recent highs — on Tuesday. The smaller Shenzhen composite moved into bear market territory in February this year. The Shanghai and Shenzhen composites were down around 22 percent and 26 percent, respectively, from their 52-week highs, as of Asia afternoon trade on Wednesday.

The noose appears to be tightening further around the law-less behaviors of the Obama administration in their frantic efforts to protect former Secretary of State Hillary Clinton from lawsuits seeking information about former Secretary of State Hillary Clinton's private email server and her handling of the 2012 terrorist attack on the U.S. Consulate in Benghazi, Libya.
It may seem counterintuitive, but there's plenty of support for the argument that investors are actually doing the right thing by moving into bonds. It is annual portfolio rebalancing season and, given the huge gains in all stock markets around the world last year, portfolio allocations between stocks and bonds would have moved well away from target weightings.

“Exhilarating...You’d have to be numb not to be impressed by the scale of [Clancy’s] ambition, his feel for the way information now flashes instantaneously across the globe, his mastery of technological developments. No other novelists is giving so full a picture of modern conflict, equally adeptly depicting those at the top and bottom of military and intelligence systems.”—The London Sunday Times


The indicator I use to get a broader, real-time measure of inflation is the New York Fed’s Underlying Inflation Gauge (UIG). This gauge captures sustained movements in inflation from information contained in a broad set of price, real activity, and financial data. In December, the UIG hit its highest level since August 2006, as the below chart shows.
Once upon a time, there was a little-known energy company called Enron. In its 16-year life, it went from being dubbed America’s most innovative company by Fortune Magazine to being the poster child of American corporate deceit. Using a classic recipe for book-cooking, Enron ended up in bankruptcy with jail time for those involved. Its shareholders lost $74 billionin the four years leading up to its bankruptcy in 2001.
The average pension fund assumes it can achieve a 7.6% rate of return on its assets in the future. As noted in Monday’s Wall Street Journal, the majority of these assets are invested in the stock market. The rest are invested in bonds, real estate and alternatives. An aggregate bond index fund yields 2.5% today. Real estate investment trusts, as a group, yield nearly 4%. Read More
I have preached, in fact I have over-preached, on staying agile in tough markets. Remember, when the beat-down comes your way, I want you all to cover the P/L on your screen with a post-it. This one little trick is something I do myself. By doing this, the trader allows him or herself to make tough, reasoned decisions without the constant distraction that one's profit/loss number can be.

Wireless power technology recently became popular with its application in charging wireless-capable devices, (such as a smartphone) via a Powermat interface. There is one company currently building out a true wireless power supply without the need for an intermediary “pad,” which could develop into an investment opportunity of a lifetime if it or another company successfully launches an IPO, not to mention the upstream manufacturing interface components.  Read More
In the 9th largest economy in the world, the financial markets are crashing, and in the 21st largest economy in the world the central bank just raised interest rates to 65 percent to support a currency that is completely imploding.  Whilethe mainstream media in the United States continues to be obsessed with all things Kavanaugh, an international financial crisis threatens to spiral out of control.  Stock prices are falling and currencies are collapsing all over the planet, but because the U.S. has been largely unaffected so far the mainstream media is mostly choosing to ignore what is happening.  But the truth is that this is serious.  The financial crisis in Italy threatens to literally tear the EU apart, and South America has become an economic horror show. Read More
I think of velocity as a machine which money has to go through to produce economic activity. If the machine is on a low setting, it doesn’t matter how much money you put in—you won’t get growth. The falling velocity of money, which is at its lowest point since 1949, is another reason why growth has remained subdued in the post-financial crisis world.
“What a difference a day makes”! Well we didn’t get the sun and the flowers like in Dinah Washington’s song but more like storm and showers. For the ones who don’t remember Dinah, Amy Winehouse made a more recent version of the song. Last week I warned investors again, in the strongest tone possible, of the risks in markets. So what triggered it? Was it the Fed’s interest rise? Or was it the trade war with China? Or maybe it was Kavanaugh?

The nominal returns, before accounting for inflation, were actually pretty decent for bonds during these real bears. Over their 45 and 50-year real bear markets, 5-year treasuries and long-term bonds returned 4.6% and 4.7% respectively on an annual basis. Bond investors would kill for those types of returns at the moment if it didn’t come with that pesky inflation.

By the end of the bear market, households’ financial asset holdings as a percentage of their total assets fell from 68% to 62%, while monetary assets as a percentage of total financial assets rose from 19% to 26%. On balance, households sought the greater security from tangible real assets, primarily housing, while adjusting their financial asset holdings principally away from stocks and toward the safety and liquidity of monetary assets.
In the current issue of Grant’s we have in the headline of the front pages today “Xi Jinping’s Poisoned Chalice.” This is the Xi Jinping (whose name I think I am butchering in pronunciation) is of course the new president for life. And our sense is that one-term presidencies in China are better than two terms, and that better than either would be emigration. So we think that Xi Jinping is the president for life in the wrong country.
Interest rate rises remain a key reason for a bear market, though there is a greater danger when they are unexpected. In its analysis on U.S. bear markets since 1929, looking at 10 major bear markets since 1929, JP Morgan Asset Management offered three other potential causes for a bear market: recession, commodity spike and extreme valuations. Of these, recession and commodity prices are more influential than extreme valuations.
Robert J. Shiller, a 2013 Nobel laureate in economics, is Professor of Economics at Yale University and the co-creator of the Case-Shiller Index of US house prices. He is the author of Irrational Exuberance, the third edition of which was published in January 2015, and, most recently, Phishing for Phools: The Economics of Manipulation and Deception, co-authored with George Akerlof.
But as Sam Stewart of Seven Canyons Advisors points out, it’s never the clock that brings an end to an economic cycle. “It’s always excesses,” he says. Stewart sees “a hint” of excess here and there. But nothing like what we saw leading up to the housing-related market crisis 10 years ago. The kind of excesses that typically bring down the economy and the market may still be years away, he says.
Given the outsized effect that monetary tightening is having on the economy, will the Fed be able to continue on its current tightening program? How are stocks and bonds likely to perform in this environment? And how will the coming wave of retirees, which will significantly increase mandatory spending, affect the measures I discussed in this letter?

Based on an analysis of the allocation of household assets over the whole 14-year bear market, it appears that the realignment of household assets took about six years, from 1968 to 1974. Figure 2 indicates how the inflation-adjusted values of assets in the households’ portfolios changed during that period. (Note that stock and bond totals include direct holdings as well as indirect holdings through mutual funds and pension funds.) Total financial assets fell by 7.5%, led by a 60% drop in equities. In the face of the weak stock market, households shifted into housing, which rose by 21% in value, and into monetary assets (that include cash, bank deposits, and money market mutual funds), which gained 24% in value. Bond holdings were little changed.
Astute readers remember how we published our Gold Price Forecast For 2018 almost a year ago when the price of gold was testing its support $1200 to $1220 level. We were bearish at that point in time. However, right after our publication the futures market, one of our leading indicators, changed its shape. We updated readers about this event, and early this year the gold futures market confirmed its new trend which was also reflected in the price of gold. Read More
I have had a request from Mrs Macleod to write down in simple terms what on earth is going on in the world, and why is it that I think gold is so important in this context. She-who-must-be-obeyed does not fully share my interest in the subject. An explanation of the big picture is also likely to be useful to many of my readers and their spouses, who do not share an enduring interest in geopolitics either. 

“The big lesson of history is that we have run the experiment of hyper-globalization before. In the late 19th century, many of the forces we are seeing [today] were at work: International migration reached levels we have begun to see again, the percentage of the US population that was foreign born reached 14%, and free trade and international capital flows reached new heights. At the time, the 1% were tremendously happy. Unfortunately, they underestimated the backlash that happens when globalization runs too far. The populist backlash [in the late 19th century] was just the beginning of a succession of crises that culminated in 1914 with WWI. War can be global too, and we will know the Liberal International Order has failed when it does what the last one did, and that is to produce a major conflict.”

Having read Crash Proof and many other "Dollar is Doomed" books ..this give a great current synopsis on the happening events ... it is weird to read/hear Mr Schiff and is bolf predictions somehow come true. Even though flight to quality in the 'dollar' has hurt many of Mr. Schiffs investments ('currently') .. his insight on the future for our American way of life makes the book a must read.


5. Historically, housing has generally kept up with inflation (whereas stocks have generally performed negatively in real terms—which takes into account inflation). For example, look at the negative real returns on stocks during the 70’s; compare that to real value of housing that stayed flat during the 70’s (housing prices moved up in line with inflation).
Since January, gold futures speculators have been trending from extremely bullish to scared short. And in the week ending last Tuesday (the most recent data available) they appeared to capitulate, adding a massive number of short positions while marginally cutting their longs. They’re now about as close to neutral as they’ve ever been. Based on the history of the past decade this is hugely bullish, since speculators tend to be wrong when they’re fully convinced they’re right. Read More
Arnott is founder, chairman and CEO of Research Affiliates LLC, an investment advisory firm. Dubbed the "godfather" of smart beta investing, per Money, he also is a portfolio manager for PIMCO. In 2007, Arnott foresaw the coming recession that would become known as the Great Recession, the biggest downturn since the Great Depression of the 1930s. Arnott says stocks are simply too expensive and that there is no reason for longterm investors to be optimistic.  "In the United States, there's not enough fear...One bad thing could cause a downturn...The market is just too expensive...At any point it might roll over and die," Money quotes him as saying.
Lady Amelia has a tattoo of three bear cubs to honor her siblings, according to a profile in W magazine. — Kate Storey, Town & Country, "Who Is the 'Most Beautiful Royal,' Lady Amelia Windsor?," 24 Aug. 2018 The last reported bear attack in Yellowstone was in 2015, according to the National Park Service. — Stephen Sorace, Fox News, "Bear attacks, injures 10-year-old boy at Yellowstone National Park," 24 Aug. 2018 Authorities want to remind people that bears are wild animals and cornering them can be dangerous. — Kayla Fitzgerald, sacbee, "Bear crawls out from under house in King's Beach," 6 July 2018 Chinese equities have plunged into bear-market territory. — The Economist, "As its trade tussle with America heats up, China is on the back foot," 5 July 2018 For the past three years, Judge Cindy Lederman has walked by a half-dozen statues of playful bear cubs every day on her way up to her high-ceilinged, top-floor office looking out toward Miami's waterfront. — Adiel Kaplan, miamiherald, "She struck down gay adoption ban and handled notorious juvenile cases. Now she's retiring.," 3 July 2018 The trooper watched the bear walk through the neighborhood but then lost sight of it. — Christine Dempsey, courant.com, "Bold Burglar – A Bear — Binges On Barkhamsted House’s Food," 29 June 2018 But scientists believe the bears once had a much greater range, roaming through southern China, Vietnam and Myanmar. — Brigit Katz, Smithsonian, "This Ancient Panda Skull Belongs to a Previously Unknown Lineage," 20 June 2018 Many steps can be taken to avoid a bear attack, according to the U.S. Forest Service. — Lindsay Kimble, PEOPLE.com, "Summer Has Arrived — Here's How to Avoid Flesh-Eating Bacteria & More Warm Weather Health Hazards," 5 June 2018
The past two years have seen a rather aggressive change in corporate policies toward the very customers they used to covet. Not long ago, CEOs tended to keep their political views mostly in the closet. Companies remained publicly neutral because their goal was first and foremost to make money. When they wanted to influence politics or social norms, they bought politicians — you know, the good old-fashioned way. The big banks still do this by funneling cash to both Republicans and Democrats alike
In my opinion, flyover America voted Republican because the “deplorables” want to defend Trump. They want to defend him for two reasons. One is that he spoke to their economic plight caused by the US corporations exporting their jobs, leaving the American workforce and middle class hard-strapped. The other is that the adoption of Identity Politics by the Democratic Party has made the Democrats the party that hates white people—especially white heterosexual males who are defined as the victimizer of minorities, homosexuals, and women. Read More
buying a home under the illusion that home prices always rises was an essential element in the RE easy money game but now that assumption is no longer considered a universal truth as a result the easy money RE game has now developed some serious air pockets in housing prices. Inventory levels,jobs and income levels all play vital parts in creating home prices but at the end of the day if you are not convinced that the home will increase in value (price) over time then the buying decision becomes more complex and everyone impacted by the buying decision generally will not want to lose money! even the wife!!!!!!
POST YOUR REVIEW OF THIS PODCAST ON iTunesVoting Responsibly for FreedomI am "pro" young people because I want them to grow up in a free country. I want them to have every opportunity to be as prosperous as possible. Democracy is actually an enemy of freedom. Young people have a better chance to achieve their goals if the 18-19-20 year old gene ...…

Most people are aware that historically there have been speculative bubbles. Some of them can even name a few – the South Sea bubble, tulips, and more recently dot-coms. Some historians can go even further, quoting the famous account by Charles Mackay of the South Sea bubble, the tulip mania and the Mississippi bubble, published in the mid-nineteenth century.

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In short, don’t imagine that the era of managing interest rates is over. It isn’t, not by a long chalk. And in fact, I suspect that if anything could give us the “melt-up” outcome, it’s central banks making it clear that they are going to ignore above-target inflation. The idea that they’re not only not taking the punchbowl away, but spiking it with rocket fuel, would be just the ticket for a final blowout.

The truth is California has been living off phony home equity gains for 40 years. Nothing was ever produced to create this money, Nothing. But, they all spent this counterfit cash into the economy like it was real. California has flourished under this scheme of ever increasing Real Estate prices, but the free ride is over. Now they’ll have to learn how to actually produce something to have prosperity.
Total sales in November rose 0.9% from a year ago to 1,393,010 new vehicles, according to Autodata, which tracks these sales as they’re reported by the automakers. Sales of cars dropped 8.2%. Sales of trucks – which include SUVs, crossovers, pickups, and vans – rose 6.6%. Strong replacement demand from the hurricane-affected areas in Texas papered over weaknesses elsewhere. As always, there were winners and losers. Read More
Three of the four worst bear markets coincided with lengthy recessions. The bear markets of 1929, 1973 and 2007 were accompanied by long recession periods. The perfect example is 1929 bear market, when the three-year-long depression drove the market down by 86%. The exception is 2000 bear market, which was mainly caused by the dot-com bubble burst despite a mild recession in 2001.
The “curse of the seventh year” refers to how, in recent decades, Octobers in years ending with seven (1987, 1997, and 2007) have been negative for markets. The pre-financial crisis bull market ended this month 10 years ago, while the Dow dropped more than 12% over October 1997. “Black Monday,” which still stands as the biggest single-day percentage decline on record, occurred in October 1987.
If you were standing in the smoldering ashes of 9/11 trying to peer into the future, you might have been overjoyed to discover this happy snapshot of 2018: There has been no subsequent major terrorist attack on America from Al Qaeda or its heirs. American troops are not committed en masse to any ground war. American workers are enjoying a blissful 4 percent unemployment rate. The investment class and humble 401(k) holders alike are beneficiaries of a rising GDP and booming stock market that, as measured by the Dow, is up some 250 percent since its September 10, 2001, close. The most admired person in America, according to Gallup, is the nation’s first African-American president. Read More
But as Sam Stewart of Seven Canyons Advisors points out, it’s never the clock that brings an end to an economic cycle. “It’s always excesses,” he says. Stewart sees “a hint” of excess here and there. But nothing like what we saw leading up to the housing-related market crisis 10 years ago. The kind of excesses that typically bring down the economy and the market may still be years away, he says.
The point being that there were several large and scary corrections during that S&P 500 and Nasdaq rally: in 1997, the Thai baht and Malaysian ringgit devaluation that led to rolling devaluations throughout southeast Asia disrupted the S&P 500 in the 2nd half of 1997. Then we saw the 1998 Long Term Capital Crisis, which resulted in Greenspan cutting short-term rates in the middle of a white-hot economy, and that's just two nasty pullbacks in that record bull market.
9/11 Apartheid Asia Bailout Bankruptcy Bible China CIA Collapse corruption Crime Currency depopulation Devaluation ethnic_cleansing Europe Eurozone Fascism FederalReserve France Fraud Gaza genocide Germany Global_Warming Gold GreatDepression Greece Hyper-inflation Illuminati Iran Iraq Israel Japan Korea Libya Martial_Law Meltdown MIC Middle_East MSM NATO Nazi Nephilim New_World_Order nuclear Obama Occult oil Palestine Police_State propaganda Psyop Riots Russia Satan Saudi_Arabia Silver stock_Market Syria Terrorism Trade Treasury Turkey UFO UK Ukraine UN Unemployment Unrest US Vaccine War weather Zionism

Even though the gold price increased in 2018, the top gold miners production declined while costs continue to escalate. Output at three of the top gold miners in the world fell in the first half of 2018 compared to the same period last year.  With rising costs due to higher energy prices, on top of decreasing production, the top gold miners free cash flow declined precipitously in 2018.
Financial and precious metals expert Egon von Greyerz (EvG) vaults gold for clients at two secret locations on two continents. EvG is sounding the alarm about record breaking global risk and warns, “With this risk, people have to take insurance. This business is not a business, it is a passion, and I have a passion to help the few people that see the risks. . . . I think your best wealth preservation will be gold.”

Relaxed is how an asset management office should be because if you know what you are doing, you can be pretty sure that you will do well in a certain time horizon. However, the reason behind the relaxed atmosphere at Vanguard isn’t because they know what they’re doing, it’s because they do absolutely nothing. Let me elaborate, out of the $4 trillion of assets under management, about $3 trillion is invested in passive index-based strategies. Investing in passive index-based strategies means investing in a little bit of everything and letting the market decide how much you’ll buy of what as the indexes are weighted by market capitalization. So Vanguard invests around $2 billion a day of new investors’ money mostly into companies like Amazon, Apple, Microsoft, and smaller amounts into smaller companies.
The global financial crisis of 2008 was essentially caused by excessive leverage, a loss of confidence in real estate credit and a resulting sudden collapse of liquidity in the financial system. The central bank response was to lower interest rates and flood markets with liquidity. Since then, debt loads have increased more than 30% and the percentage of higher risk credit has also grown sharply. Many analysts believe that another crisis is possible due to a combination of enormous leverage and deteriorating credit standards. What will happen to gold if we have another financial crisis?
I want you to understand this. This was no speedy drive by. This was a 16-hour trip, by two U.S. warships enforcing their right to travel international waters -- waters that China would obviously dispute the use of the word "international" as descriptive. The U.S. ships were shadowed by Chinese warships. This is cold war behavior. Been there, done that.
For investors looking to maintain some positions in the stock market, a defensive strategy is usually taken. This type of strategy involves investing in larger companies with strong balance sheets and a long operational history, which are considered to be defensive stocks. The reason for this is that these larger, more stable companies tend to be less affected by an overall downturn in the economy or stock market, making their share prices less susceptible to a larger fall. With strong financial positions, including large cash holdings to meet ongoing operational expenses, these companies are more likely to survive downturns.
The pain of the masses and yet Wal-Mart and Exxon continue to use their monopoly power to extort the nation for bragging rights to see which corporation and have the biggest 11-digit profit in one quarter. You might think even Rush and Kudlow would take pause that perhaps unfettered capitalism may not be the self-correcting, perpetual-motion answer to all humanity—but no, once a fool has his mind made up, no amount of evidence will change it.

As Benjamin Westerman, CPA/PFS, CFP® in St. Louis, MO explains, many investors look to bond holdings and cash during a market downturn. “Bonds are your 'sleep at night' money that is protected during a bear market, while you wait for your investment portfolio to recover. In addition, if you have any money on the sidelines or are still in the accumulation/savings phase of your life, this is a great opportunity to invest in equities while stocks are on sale.”
"Now investors are wondering if the housing market's problems will spill over into the economy. 'Housing is the one wild card that could, if it takes consumer confidence down with it, take the economy into a recession,' says James Stack of InvesTech Research... Could the housing troubles yank the broad stock market into a morass just as the tech-stock implosion did in 2000?... 'The parallel is amazing,' Stack says."
Phil is a hedge fund manager and author of 3 New York Times best-selling investment books, Invested, Rule #1, and Payback Time. He was taught how to invest using Rule #1 strategy when he was a Grand Canyon river guide in the 80's, after a tour group member shared his formula for successful investing. Phil has a passion educating others, and has given thousands of people the confidence to start investing and retire comfortably. 

Assuming that the decline from the January-2018 peak is a short-term correction that will run its course before the end March (my assumption since the correction’s beginning in late-January), the recent price action probably is akin to what happened in February-March of 2007. In late-February of 2007 the SPX had been grinding its way upward in relentless fashion for many months. Read More
JOIN PETER at the New Orleans Investment Conferencehttps://neworleansconference.com/conference-schedule/831 Point Rout in the Dow Jones Industrial AverageIf you listened to Friday's podcast, I mentioned that I thought I would probably be doing a lot of podcasts this week. I did one yesterday, and I am doing another one today because my feeling ...…
It’s been 30-weeks since the last 6-month low (December). The intermediate cycle has averaged about 23-weeks, so we are well overdue for a bottom. Interestingly, while gold crashed nearly 10% in 2-months, gold miners remained relatively stable. Currently, they linger just 6% below their April highs; their resilience should not be ignored. It speaks of a hidden energy that once loose, should deliver brilliant gains. Read More
Some nasty dark clouds are forming on the financial horizon as total world debt is increasing nearly three times as fast as total global wealth.   But, that’s okay because no one cares about the debt, only the assets matter nowadays.  You see, as long as debts are someone else’s problem, we can add as much debt as we like… or so the market believes.
Stock market downturn of 2002 9 Oct 2002 Downturn in stock prices during 2002 in stock exchanges across the United States, Canada, Asia, and Europe. After recovering from lows reached following the September 11 attacks, indices slid steadily starting in March 2002, with dramatic declines in July and September leading to lows last reached in 1997 and 1998. See stock market downturn of 2002.
The reason why sticking with a plan is so important is that it lets you invest at low prices, allowing your money to go further by buying more shares. When stocks recover, you'll own more shares and earn particularly strong returns on the investments you made at or near market lows. Capitalizing on those opportunities will have a definite positive impact on your long-term returns -- as long as you have the discipline to pull the trigger when the time comes.
Bill Gross co-founded Pacific Investment Management Co. LLC, or PIMCO, where he earned a reputation as a particularly savvy bond fund manager. He now does the same in his position at Janus Capital Group Inc. Money cites Gross as another big-name investor who predicted the 2008 crash, raising a cash hoard of $50 billion to cover potential counter party claims against PIMCO.
Now that may work in a gently trending market. It has not worked at certain times and junctures in which both stocks and bonds decline together. So my sense is that there’s a lot of money in risk parity and that a forceful rise in interest rates, a steep decline in bond prices, is going to force liquidation of some part of the risk parity portfolios.
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