Those of you partaking in the After Hours with Option Addict free trials were entreated to life changing events, as energy stocks spiraled higher these past two days. However, as the very basic of laws presiding over life dictate, all good things must come to an end. Stocks crested mid-day, as the presumptive Presidential nominee, Hillary Clinton, made HERstory today–locking in the democratic nomination over the old seahag, Bernard Sanders.
Whether stocks topped today, or will continue to run for the next 10,000 years, is irrelevant to me. Viewing the landscape from a very high perch, I find it very notable that the BOJ are moving towards tossing out helicopter money onto its robot loving citizens. Bear in mind, their companies are now able to borrow, seemingly, unlimited amounts of money for nothing at all. If we are to assume central banks will continue the path to undermine their own currencies, we must assume alternative currencies, like gold and silver and maybe Bitcoins, will continue to attract asset allocators.
This isn’t even about being bullish on gold or bitcoins. It’s about trying to determine where money managers will place money, in light of these new developments.
As such, I am exploring the idea of adding gold and gold stocks to my core holdings, which, at the moment, holds nothing but TLT and cash. If and when I decide to build a portfolio of gold stocks, I will do so in Exodus first.
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LOL. i still remember your blog post with a picture of the cat and the hat and a simple title “gold and silver stocks are for losers.”
I’ve always hated gold stocks.
Bitcoin has had a nice few weeks — worth at least a small allocation and easy to acquire via Coinbase
I have no idea who to vote for now. Bernie seemed like a normal guy with big ideas that we should pursue and figure out how to do as we go along – you know, the kind of “dare to dream big” thinking so many companies push now.
So Hillary, more of the same old same old and thus more of kicking the revolution can down the road, or Trump, the disruptor who will certainly usher in a new era but is so unstable and crazy may end it all before it gets a chance to start.
Strange days have found us, strange days have tracked us down. They’re going to destroy our casual joys, we shall go on playing or find a new town.
Well, you could do like everyone else and vote for whomever you dislike the least.
A lot of the Trump vote is an anti-establishment vote, as the Bernie vote would be too. Hillary is the establishment candidate. So if that is your frame of reference– establishment or not– then you have to decide whether you dislike/fear/hate the establishment more than you dislike/fear/hate Trump.
What about the Libertarian candidate Gary Johnson? Maybe worth a look. Vote for what you believe vs. vote for who can win. Quite the conundrum. Indeud.
Dude. Might as well pick a date at a rest stop. Vote with your fucking brain. Government needs the overhaul. Wrecking ball even. Trump.
Eat pluribus unum
bear motto
must eat well for hibernation
“BOJ are moving towards tossing out helicopter money”
Aren’t they already there?
1) Corporation issue bonds at ~0% interest
2) BoJ buys the bonds
I think he means literally flying overhead and tossing out bags of ¥
On a more serious note, I think buying assets or giving loans to corporations is the closest CBs can go – they can’t fund the lower and middle classes. That would require legislative action from Congress, National Diet (Japan), etc.
This is why the BoJ has been unsuccessful for ***decades*** in trying to boost consumption/inflation. It is also why the US will go down the same path: any attempt to share the ‘coptor money with Consumers gets albeled “socialism” and quashed.
Instead, the FED funds the upper class which then prices assets out of the range of the lower class, because assets are what the upper class spends excess funds on. With the increasing price of housing, discretionary consumer spendign gets quashed.
For example, looking at the price of the “typical” car, you may be surprised that it hasn’t really changed that much. In fact, when you factor in the increasing level of equipment car prices have not changed in 20 years (BLS – consumer price index for new vehicles). **This is in non-inlfation adjusted dollars**. In other words, a car with ___ equipment costs muhc less than it did in 1997 once you factor in inflation. A 2016 Toyota Corolla is bigger, faster, safer, more luxurious, and more fuel efficent than a 1997 Toyota Camry. Yet the Corrolla cost the same in 2016 dollas as the Camry did in 1997 dollars. More to the point ,even with this drastic cost redcution, ***the upper class is buying a higher proportion of new cars***. The record autombile sales levels are because the upper class don’t really have better to do with their money.
“This is why the BoJ has been unsuccessful for ***decades*** in trying to boost consumption/inflation. It is also why the US will go down the same path: any attempt to share the ‘coptor money with Consumers gets labeled “socialism” and quashed.”
I miss Bernie already.
Another path is to go for yield when more and more sovereign debt is at negative or zero rates. My thesis is that for 2016 there will be a huge thirst for yield worldwide whether or not the Fed raises rates. My biggest position is $SDIV which has outperformed the S&P since the Feb lows and offers three times the dividend of the S&P. $SDIV is comprised of a screen set of the world’s top 100 dividend yielding equities.
I agree with the gold trade too but not with as much conviction or sizing.
Jump on the JNUG train. Ran from 20 to 185 now 147. Have fun.
Welcome to the endgame. The end of this fiasco is nearing and nothing will save us from the unwinding of the ultimate Ponzi scheme of all time. While bitcoin sounds like a good safe haven in the end times, it has one huge flaw. All currencies that can be exchanged into bitcoin are Fiat, therefore bitcoins base value is also Fiat. The only way bitcoins will actually have any value in the future is if countries convert their currency to bitcoin.
I myself am inclined to keep my money in gold due to its inherent history as a store of wealth.
Or VXX
Agreed VIXY
VXX and VXY and all non-phsical assets have the exact same flaws that sethster99 noted: they must be converted to a Fiat currency to extract their value. Gold, oil, ammo, food, water could be bartered for goods; GLD shares, VXX futures, etc., cannot.
I’m not taking a position on whether these are bad investments, only stating that they do not solve the problem mentioned.
Cigarettes too, for barter. I don’t know about gold. It has value but it is not as easily denominated into small enough denominations as the other barter materials you listed.
No need for barter materials right away though. Hillary is in Wall Street’s pocket, as all presidents have been for a while now. If Hillary wins, Wall Street will probably make the market go up for her, at least for a while.
Tokyojoe friend did you really know him ? Pretty funny dude in late 90’s. Then he disappeared.
Some say that Hillary would be like a 3rd term for Obama. Although I would prefer Bernie, a 3rd term for Obama sounds pretty good to me. Things went pretty well with Obama in office, especially considering the economic crisis that Obama inherited. Obama did far better than W.
In what regard pray tell Sir Frog?
Under King 0bama the country is more divided along social, racial and economic lines than it has been in recent history. This is indisputable fact for anyone with their eyes open and not licking the ass of His Highness.
Those same wide awake people are aware of the fact that our economy is a house of cards which is ready to collapse…along with most others in the world. The so called growth purported to have occurred over the reign of 0bama the Great is completely artificial by any measure. Sure, many a corporate balance sheet looks all spiffy these days but the fact of the matter is any supposed growth was a machination of the Fed puking Billions in through the back door. They have literally been masturbating money into the “economy”…at least until Yellew took over…I don’t know if she has the capability to perform that act.
So tell us once again how things have really and truly improved in the last 7 years.
http://www.cbsnews.com/news/obamas-top-10-accomplishments-according-to-obama/
I’m not in favor of the TPP. But the other ones I think were good accomplishments.
And here’s a Right of Center news source for you, that admits Obama accomplished a lot.
http://www.politico.com/magazine/story/2016/01/obama-biggest-achievements-213487
Obama deserves a place in Mt Rushmore.
Definitely.
EGO would be an appropriate gold stock.
Politico is hard left leaning frog.
IT doesn’t sound hard Left learning to me. I see in wikipedia that Politico has been said to have a Republican tilt, and that G W Bush publicly endorsed them. But I see that, despite that, it’s not Right Wing enough for some Right Wingers, who say that it has a liberal bent.
Perhaps you can’t please anyone in today’s tribal political atmosphere.