Money and Markets’ newsletter editors sounded off on the most important topics of the week. Below are snippets from the editors and links to their services.
From Larry Edelson’s Power Portfolio …
“Gold closed out [last] week on a strong footing as a bullish research report released by JPMorgan analysts [last] Friday called for a bottom in gold as cited by Dow Jones. …
“One has to question the integrity of such reporting as the big bullion banks including JPMorgan have been loading up on long positions in gold as of late and as noted in the Commitment of Traders report, accumulating the metal from hedge funds that have been selling the downtrend of the previous months.
“My models show the rally will be a dead cat bounce. The final lows in the bear market are not yet in.”
From Douglas Davenport’s Inflation Survival Strategy …
“Stocks and bonds are negatively correlated. And with the recent pullback in stocks, bonds have increased in price and yields have declined. This does not end the major decline in bond prices that started last summer.
“Bond prices should decline once again when monthly employment reports start to signal more hiring is occurring and December’s horrible report is nothing more than a one-off event due to cold weather.“
From Mike Larson’s Interest Rate Speculator …
“… Emerging markets are seeing [some] hiccups. The Argentinean peso is falling sharply in value, raising fears of a further default on the country’s debts there. The Turkish lira is also slumping to record lows against the dollar amid concerns over government stability and corruption there.
“Add it all up and you get one of these periodic “flight to safety” moves. That’s where the dollar falls in value, particularly against the Japanese yen, bonds rally and stocks slump. …”
From Larry Edelson’s Gold and Silver Trader …
“In gold and silver, an imminent move to the downside is still in the cards for this month. …
“If we don’t get a washout low this month … then the final lows for gold and silver, when they come during the next cycle target in May, will be all that much worse, shaking out the majority of investors.
“…and then, the inevitable turn higher.”
Best wishes,
The Money and Markets Team
