As the U.S.dollar continues to rally, today one of the greats in the business sent King World News a fantastic piece discussing the decline in the metals, particularly silver, plus a bonus Q&A about gold, the Fed, stocks, and a note from David Rosenberg.
November 10 (King World News) – Overnight markets were a nonevent and the early going here saw the Dow and S&P slightly red, while the Nasdaq was 0.5% lower through midday. The leading catalyst for the latter weakness was a dead fish report that Apple has cut back orders to its suppliers due to sluggish demand for the iPhone 6s (surprise, surprise, who could have known?)…
In a King World News interview I spoke with the man who predicted the Swiss National Bank would experience staggering losses and that the Fed would also experience massive losses that will destabilize the global financial system! His company is the only one in the world offering a precious metals investment service outside the banking system, with direct ownership and full control by the investor. He has also become legendary for his predictions on QE, historic moves in currencies, and major global events. To find out what he and his company can do to help answer that age old question for you CLICK HERE.
…Can Ruin the Whole Bunch
As a result, companies in the Apple food chain were roughed up disproportionately, and since they are all members of the SOX — a favorite speculative toy of hedge fund operators — that weighed on the Nasdaq.
The early weakness didn’t stick, as once again the market rallied back to flat (though the Nasdaq did post a small loss). Away from stocks, green paper was stronger, oil was flat, fixed income bounced, and the metals were weaker again, with silver making it nine days lower in a row, losing 1% to gold’s fractional decline.
Included below are five questions and answers from today’s Q&A with Bill Fleckenstein. The questions are from his subscribers and they get to read Fleckenstein’s answers every day.
Question: If you could only make 1 trade to support your position on the Fed and its impact on the market over the next year what would it be?
Answer from Fleck: “Long gold.”
Question: Hi Bill, how many minus DJIA 200 days do you think it takes for the Fed to change their mind (again) about raising rates at their December meeting? What a bunch of losers and the masses still think they can do no wrong.
Answer from Fleck: “Ten to fifteen.”
Question: Just some info. David Rosenberg said yesterday that gold is putting in a classic triple bottom. And he is looking for inflation to return in a big way,especially wage inflation. Further, he points to the TIPS which jumped from 1% in late Sept.to 1.26% yesterday on the 5 year. When Canadians start talking positively about gold,it is usually good to listen.
Answer from Fleck: “OK, thanks.”
Question: How will you determine whether this is the vaunted “failed” rally we have been waiting years for??
Answer from Fleck: “First, the market must stop going up. It did that. Next, we need to take out the August lows on no particular timeline. Then whatever rally comes after that can’t make a new high. Obviously, it will take time for all that to play out, so by the time you know for sure a lot will have happened, so between here and there, guesswork is involved. But if it does play out like that, there will be large consequences. Hope that helps.”
Question: To the reader comparing cash (essentially 0% return) to gold (8.8% annual return, using their figure) as being equivalent.. What?? 8.8% is immense for such a long period of time – and that’s with it doing poorly the last few years. I can’t believe I read that.
Answer from Fleck: “Agreed.”
***To subscribe to Bill Fleckenstein’s fascinating Daily Thoughts CLICK HERE.
***ALSO JUST RELEASED: Adam Smith And Jeff Gundlach On The Money Game And The Harsh Reality Facing Central Planners CLICK HERE.
© 2015 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.