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Greetings from Toronto! As you read this, I’m canvassing the floor here at the Metro Toronto Convention Centre … getting ready for my first MoneyShow panel discussion on gold … and preparing to help ring the closing bell for today’s Toronto Stock Exchange session.
I love these kinds of events because I get to interact — in person — with knowledgeable investors and subscribers like you. And this conference couldn’t come at a better time, given the increased stock market turmoil we’re seeing … and the huge gold market gains we’ve witnessed so far in 2016.
If you’re in town, be sure to stop by and say “Hello.” If you couldn’t make the trip, though, let me give you the general outline of what I’m telling investors here …
First, “Everything Bubble” risks are getting larger with each passing day. The auto industry is on the ropes, with Ford Motor (F) confirming this week that market conditions are deteriorating. Commercial real estate shares have gotten hammered in the past several days amid rising fears of a price bust there. High-yield and emerging market bonds are taking on water again due to worries about the credit cycle turn, and the end of artificial central bank bubble-blowing.
Second, the U.S. economy continues to show signs of decelerating. Key readings on the manufacturing and service sector have taken a turn for the worse, while the Citi Economic Surprise Index has retraced the entire “summer spurt” we saw in July and August.
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| Overvalued assets could get hammered. |
Third, Wall Street’s top money managers and noted billionaires continue to warn loudly and frequently that radical monetary experimentation may be at the end of its rope. That means wildly overvalued asset prices could be facing a potentially dangerous depreciation.
Fourth, you can still find a select handful of fundamentally strong, highly rated companies in less economically sensitive industries. I’ve recommended a small number of them in my various investment services.
But I have a much longer list of stocks and sectors that will get hit hard if the everything-bust-scenario continues to play out. The resumption of volatility we’ve seen over the past few days only adds to my concerns that we’re seeing a regime change in the markets.
So now is not the time to go hog wild throwing money at stocks. Instead, it’s a great time to hunt for short-sale and put option opportunities in vulnerable names. That’s precisely what I’m doing in my shorter-term trading service, All Weather Trader, which you can get on board with by clicking here.
Lastly, if you missed this chance to chat with me in person about the markets here in Toronto (and maybe sample some great poutine!), be sure to check out the New Orleans Investment Conference. It’s scheduled for October 26-29, 2016 in the Crescent City, and offers you a great chance to learn from some of the top minds in the investment world.
I’ll have a couple of sessions there, and would love to see you in the audience. You can find more details by clicking here or by calling 1-800-648-8411.
Until next time,
Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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Investors re-take the decisions we may need for a resolution before ever
Since voting to leave Europe the UK is booming-record low unemployment, record low inflation and a sound expanding economy; we are doing very well over here.
The Golden Globe Greed awards. Must be nice when they can bargain with the government over breaking the law. Is this available to you and I???
After receiving a $14 billion (£10.6 billion) claim from the US Justice Department to settle an investigation into mortgage-backed securities, Deutsche Bank shares tumble 8.2%.
“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited,†the company said in a statement early Friday.
“The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.â€
Since 2008, Deutsche Bank has paid more than $9 billion in settlements and fines, according to Bloomberg. Reaching a mortgage deal would clear the bank’s major hurdle.
Yes folks we have 2 winners today.
Apple has settled a tax claim with Japan for a measly $118 million chump change. No nobody went to jail. If you or I owed this amount we would have been behind bars long ago.
So folks which country is going to step up the the plate and take a swing at one of these large multi-nationals? Stay tuned. This trickle will yet become a flood.
My
PS imagine if you filled your retirement stocking with Deutsche bank stock thinking you could sleep safely at night till retirement. I imagine a lot of Germans did. If you hold banking stocks thinking that they will see you through your “Golden” years you better do some checking. Even the bank where you do the majority of your banking could be at risk.
stocks go down, gold goes up. could we see a spike to $1,400?
A markets collapse isn’t likely to happen suddenly and surprisingly. It will probably begin with various sized drops and partial or complete recoveries. They may occur and recur for some little time, perhaps beginning a trend lower – perhaps not. Then, perhaps after a “black swan” event of some sort, the big drops will begin – one after another – until the bottom area is reached. Or maybe a false bottom will appear, followed by some final collapse. The details remain unclear, but the necessity of some such series is plain, as the Keynesian economics policies beloved of politicians, and followed by them for the last 80 plus years, violate all common sense.
I am watching the Samsung battery fiasco and wonder if Samsung like so many other greedy manufacturers went to their battery manufacturer and tried to leverage the price down per unit and it backfired on them. So many manufacturers are pressuring their suppliers to lower prices so that they can increase theirs. Takata air bags??? Hey you only get what you pay for.
Good reasoning!
And sometimes even paying more buys you less.
I really enjoy your insightful and honest take on world markets. I take your information and my research and form my own strategies. Thank you sir. Sincerely: Gregory Jay Chaney
Glad you enjoyed the poutine Mike ! Unfortunately I was not able to attend the Investors Conference in Toronto. Since you were in Canada, you may or may not been asked about the conditions of the Canadian Residential Real Estate Market. Canada had not suffered the degree of correction in housing prices (as the U.S. did) during 2005 to early 2009. Moreover, the prices just keep going up almost without any correction. In fact, this month Vancouver British Columbia has now been called the ‘City of Millionaires’ because the average house value is over $1M. What is your professional opinion/view on our defying-gravity Residential Real Estate market for large Canadian cities ?
great! see you… best wishes,Andrew
Money will be no good,so if you want to sell, Good luck.
HI Mike, glad to hear you’re in Toronto (where I live).
I hope you get the opportunity and spend some time investigating the TSX.
I believe there are some great opportunities here in Canada.
Our banking system is very secure, offer great dividends and have showed solid growth this year.
Yes, our natural resources stocks have been hit hard due to low oil prices but there could be buying opportunities.
Don’t forget the gold stocks here as well.
The Cdn $ is also very low so the US green back goes a lot further up here.
Anyway, lot’s to investigate in Canada. I hope you enjoy your time with us.
Yes things are improving if you have a credit card and your view is “The Sky Is The Limit” Yes as a matter of disclosure I am a saver one of those poor people that Stanley Fischer of the Fed says must sacrifice zero interest on my savings to serve the greater good of stock holders and also I must provide for low interest rates so the government can finance their enormous debt or go broke if interest rates ever reach their true level. Lets have a round of applause for Stanley!! Hmm is that the sound of one hand clapping.
Kitco News) – Sept 16 — The world is awash in debt –both at the government level and the individual level. In the second quarter, U.S. consumers racked up $34.4 billion in credit card debt, which is the largest second-quarter accumulation since at least 1986, according to WalletHub’s 2016 Credit Card Debt Study.
what is best way to invest in internet of things
Where is the saafest plaase to store precious medals?
You say the government is watching us. What do we do if they come after us?
How exactly are they able to watchus. Is there aa limit as to how much a person haas to make it worth their time to retrieve it?