The Stock Market’s Bizarre Strength is Not About the Reopening, or the Recovery, At All
1 day ago | Investing Strategies
The stock market was insanely strong last week. And we don’t mean strength within normal boundaries either — as in, “the market had a strong performance” or “the market looks strong.” This was strength well beyond the bounds of normal. It was strength so freakish, the standard explanations cannot account for it. Here is Mark Hulbert, a columnist for MarketWatch,…
In Deflationary Environments, Central Banks Make the Price of Gold Go Up
2 days ago | EducationalInvesting StrategiesNews
After we explained why deflation is coming, some of you wrote in to ask: “What happens to gold if we get deflation?” The short answer is that, in deflationary environments, the value of gold tends to go up, possibly by a lot. We have empirical evidence of this from the 1930s, a decade where gold mining stocks saw stratospheric gains….
Gold Stocks are a Portfolio Inoculation Against Coronavirus and Central Banks
3 months ago | Investing Strategies
As of late February 2020, the major U.S. indexes are down more than 3% — and gold stocks are up more than 3%. On a day when global equities were hit hard by coronavirus (COVID-19) fears, gold and gold stocks surged to brand-new, multi-year highs. That is not a coincidence. Gold miner profit margins are leveraged to the long-term gold…
The Zero-Cost Investing Model is Taking Over Wall Street
3 months ago | Investing Strategies
The zero-cost investing model is taking over Wall Street. Everywhere you look, the cost of participation is being driven towards zero. Fees and commissions are shrinking, to the point they nearly vanish. And when it comes to investing and trading via brokerage firm applications, the “zero” in zero cost is literal. For buying and selling stocks through various brokers and…
“Shippergeddon” Could Produce Big Gains Down the Road
4 months ago | Investing Strategies
Deep-value investors should take note of what’s happening in the global shipping industry. The outlook for shippers is so bad right now, you could call it “shippergeddon.” Conditions are full-on catastrophic, due to a triple-whammy of negative impacts. It isn’t time to act, but it’s time to keep an eye out. A horrible outlook for shippers now could produce significant…
Inflation Could Come Back Suddenly and Powerfully — Here’s How
4 months ago | Investing Strategies
Ken Griffin is worried about inflation. We are, too. The market is highly complacent in its low-inflation assumptions. Many assets are priced as if inflation will stay low for years or even decades. If inflation roars back suddenly, it could wreak havoc in treasury bonds, high-yield debt, overbought “safe havens” like consumer staples and utilities, and multiple other places. It…
The World is Drowning in Debt, and Nobody Knows What Will Happens Next
4 months ago | Investing Strategies
The world is drowning in debt, and nobody knows what will happen next. This is terrible news for fiat currencies, and excellent news for gold and Bitcoin. At a certain point, debt tends to beget more debt in a downward spiral with no way out. This generally happens for two reasons: First, because the debt load gets so heavy, relative…
Best of: Most Stocks are Duds (But You Can Win Anyway)
5 months ago | Investing Strategies
Editor’s note: We come across a lot of research, and the study performed by Hendrik Bessembinder earlier this year was one of the most eye-opening we’ve seen. If you have a poorly performing stock in your portfolio, hoping it might make a comeback, here is some bad news: That comeback isn’t likely. Most “dud” stocks tend to stay duds. Not…
The Man Who Always Says “No”
6 months ago | Investing Strategies
Imagine having a man who works for you whose only job is to say “No” to things. There is nothing else this man would do for you. He wouldn’t answer your phone, or help you with spreadsheets, or offer you assistance of any kind. If you asked for the slightest bit of help outside his job description he would just…
Conventional Investment Advice is Like Dieting Advice (All Over the Map and Terrible)
7 months ago | Investing Strategies
There are few things more obnoxious than dieting and nutrition advice. The more you dig for answers, the more confusing things get. The findings conflict with each other. The recommendations are all over the map. For example, one guy, a doctor or a Ph.D., tells you whole wheat grains are a bedrock staple. Another Ph.D. says grains are toxic for…
