Goldman Sachs March 28th 2000 Abby Cohen announces at market at all time highs, "Warning: clients should reallocate some of their holdings from stock to cash." Today, May 18th 2016, Goldman Sachs downgrades stocks. "Goldman Sachs strategists say stocks do not look attractive due to earnings growth and valuation concerns.. Until we see sustained signals of growth recovery, we do not feel comfortable taking equity risk, particularly as valuations are near peak levels," In this environment, the analysts recommend being overweight cash and 5-year corporate bonds."
Perhaps, however seems the forces that be could not stop the waterfall declines on 8/18/15 ~ 11% drop in 5 sessions (SPX 8/18/15 2103 to 8/25/16 1867) and 12/30/15 ~ 13% drop in 14 sessions (SPX 2077 12/30/15 to 1812 1/20/16). Logically since rapid double digit % declines have occurred in the recent past implies that they could occur in the near term future possibly meeting and/or exceeding El-Erian's percentage/time 'correction' estimates. Kindest regards...
Virtually an uninterrupted advance since 2/11/16 (181.09 to 210.92) ~ 16% in 3 months would seem a correction is overdue. On March 24th El-Erian called for a 10% decline in coming months; seems that prediction can still play out.
Yup that's how it goes sometimes just when you think the market is heading to the moon it dive-bombs. Closing prices key; a reversal of todays up-move intraday hugely bleak for the bulls....
of course no one is there.
Douglas Evans - Chairman and CEO
Mr. Evans (BA,MBA) spent 25 years in the Canadian Forces as a pilot and staff officer to the Minister of National Defense. Since his retirement from military service, he has served as president and director of a number of public and private companies involved in their financing and development in the mining and technology sectors for the past 17 years.
James Spence Stewart – Director and Secretary
Mr. Stewart (BA, LLB,QC) is an attorney who has worked 20 years as litigation counsel, 10 years as civil and criminal counsel to the Attorney General of Ontario and Canada; 5 years as Secretary & General Counsel to a large development firm, and was appointed to the Queen’s Counsel.
Dinesh Parakh - Director
Dinesh Parakh BA; Master of Arts(International Relations) and Juris Doctor(law). For the last several years, he has worked for the United Nations in South Africa as a program officer for the World Food Program and as a program specialist for the Development Program. His expertise is in policy development and analysis, project management, legal analysis and financial operations.
Bill Boberg - Director of Exploration and Geology
Geologist Bill Boberg will serve as Director of Exploration and Geology. He brings 35 years of experience in investigating, assessing and developing a wide variety of mineral resources in a broad range of geologic environment in western North America and Africa.
Hendrik Veldhuyzen - Consulting Geologist
Mr. Veldhuyzen (BSC,MSC) is a professional geologist registered with the Association of Professional Engineers and Geoscientists of Newfoundland and L'Ordre des Geologues du Quebec. He has 27 years of full time international field work with a variety of worldwide corporations.
If I'm not mistaken BOJ didn't tighten but held off on further stimulus...
"The Bank of Japan held off on expanding monetary stimulus, as Governor Haruhiko Kuroda and his colleagues opted to take more time to assess the impact of negative interest rates.
The move comes as a surprise to the slight majority of economists surveyed by Bloomberg who had projected some action from the central bank in response to a strengthening in the yen that has cast a shadow over prospects for higher wages and investment. The currency rallied against the dollar immediately after the decision while stocks in Tokyo tumbled...."
Schiff consistently nails the fed....
Peter Schiff Radio. Ep. 163: Dollar Dives, Gold Thrives, Puerto Rico Defaults: 5/2/16
~ 4:00 “There’s still people clinging to the idea that we’re going to get a rebound in the second quarter when there’s absolutely no indication to expect that to happen and the currency markets obviously don’t think that’s going to happen with the dollar trading as weak as it is. In fact I saw some people on CNBC that were saying that the reason the price of gold is rising because of a weak dollar, that’s not actually the case the price of gold is rising for the same reason the dollar is going down. It’s not that the weak dollar is causing strong gold both the dollar and gold are moving for the same reasons and that is because we are unwinding these bullish bets on the US economy. The idea that we’re going to have this divergent monetary policy where the US is the only central bank tightening and everybody else is easing because we’ve got all this great economic growth. Now people are starting to realize that we don’t have great economic growth and the FED can’t raise interest rates which is something I’ve been saying all along. “
Seems the market should go up now per FED meeting yesterday so I bought calls... It was a strange experience since I havn't been bullish since 2008... Wonder if this means something?
Now is a good time raise rates though they can back out altogether. You just don't know with this committee which seems very different than the old days when policy was reliable & telegraphed. A hike next week should definitely crash this market though unlikely to occur. Peter Schiff claims they have no intention of raising rates and he's pegged the FED for years.
For specific reasons ------ I have a countdown timer set on May 12th 2016. Currently we're at 19 days 23 hours 6 minutes and 06 seconds...
The Sovereign Investor Daily - by JL Yastine April 19th 2016
Several noted economists and distinguished investors are warning of a stock market crash.
Billionaire Carl Icahn, for example, recently raised a red flag on a national broadcast when he declared, “The public is walking into a trap again as they did in 2007.”
And the prophetic economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.”
Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999. And we all know what happened next. Stocks fell by 89% and 50%, respectively.
Even the Royal Bank of Scotland says the markets are flashing stress alerts akin to the 2008 crisis. They told their clients to “Sell Everything” because “in a crowded hall, the exit doors are small.”
The last unfettered SPY run of ~ 13% started on 9-29-15 (intra-day low 186.93) and ended on 11/3/2015 (intra-day high 211.66). 25 sessions. On the 26th session it corrected ~ 4.5 % lasting ~8 sessions.
A ~15% unfettered SPY advance occurred from 10/15/2014 (181.92 intra-day low) to 12/5/2014 (208.47 intra-day high) 37 sessions. On the 38th session it corrected ~ 5% lasting ~8 sessions.
The current SPY advance began on 2/11/16 ascending virtually unfettered for 48 sessions with intra-day extremes of 181.09 (2/11/16 intra-day low) to 210.51 (4/20/16 intra-day high) or ~ 16%.
US Reporter April 13th 2016 - In a shocking move likely to crush the US economy overnight, China is refusing to make its new gold-backed Yuan, convertible from or to US Dollars. The new Yuan will be introduced next Tuesday, April 19. When the International Monetary Fund (IMF) agreed to add the Yuan to the basket of world currencies used for Global Reserves and International Trade, they wanted China to make the Yuan more reliable as a currency. Since then, China has almost un-pegged its Yuan from the Dollar, allowing its value to fluctuate on world markets. But for years, China has been amassing huge amounts of gold bullion; some have said their appetite for bullion has been "staggering." And with a new gold-backed Yuan to be issued next Tuesday, the entire world will have a choice of a new currency to use for international trade: The old US Dollar which is backed by nothing, or the new Chinese Yuan, which is backed by gold. Which currency would YOU use? When this new currency is issued, countries that have been forced to use US Dollars for decades, and have had to keep billions of dollars in their foreign currency reserves, will be free to dump those dollars. But they won't be able to dump them to China for the new gold-backed, Yuan!
China has reportedly decided "there can be no conversion of gold-backed Yuan to or from US dollars." What China fears is that many countries around the world will want to trade their reserve US dollars for the new Yuan, leaving China with mountains of worthless US dollars. China already has several trillion in US dollar reserves and does not want or need more. If news of this decision by China is correct, then countries around the world may just have to decide whether or not they wish to continue trading with the USA at all?
The upheaval this could cause as early as next week, would be staggering.