central banks

5 Reasons Why the Global Meltdown is Just Getting Warmed Up

By Thursday, September 3, 2015
Global Stock Market CrashLate last year I wrote an article suggesting the U.S. could enter a depression in 2015. To some it sounded farfetched at the time. After all, the stock market was at record highs and investors remained bullish. But it seemed to me that all the economic evidence pointed to a U.S. financial crisis. I think the same conditions are in play. In fact, I think the global meltdown is just .

Gold Bullion: These Three Players Bought 50% of 2Q15 Production

By Wednesday, August 26, 2015
GoldWhen there’s too much uncertainty about an asset class, like there is today with gold bullion prices, I go back to the basic economics of supply and demand. For prices to rise for any asset, you want to see demand increasing and supply remaining the same or even declining. Gold Bullion Demand Soaring On the demand side, when it comes to gold bullion, I follow three heavyweights: China, India, and .

Invest in Gold: Central Banks Making Compelling Argument to Own Yellow Metal

By Thursday, August 20, 2015
Invest in GoldReasons to invest in gold are increasing each day. Don’t pay too much attention to the mainstream; it is pessimistic towards the yellow metal for all the wrong reasons. You see, between 2008 and 2012, there was just one major phenomenon driving gold prices higher; money printing by the Federal Reserve. It was running its printing presses at full throttle and as a result the value of the U.S. dollar .

Top 10 Countries with the Highest Gold Reserves

By Monday, August 10, 2015
Highest Gold Reserves Top Countries with the Largest Gold Reserves Is Gold Bullion at a Crossroads? Gold has had a remarkable run since it started its nascent rise in early 2001, climbing more than 650% between April 2001 and September 2011. Since then, gold prices have either taken a breather or are preparing for another upswing. Based on the gold purchases made by central banks over the last three years, it appears as .

Gold Price Plunge: Why It Means Break Open the Champagne!

By Wednesday, August 5, 2015
Gold Price PlungeGold prices are down and the pessimism towards the precious metal is increasing daily; this is great news! If you bought gold bullion when it was beginning its bull-run—and kept it—you are doing much better than people owning stocks during the same period. Look at the chart below. It plots gold’s price (grey area), gold’s price performance (golden line), and the Dow Jones Industrial Average performance (red line) from 2001 .

Economic Collapse: This Could Lead to a Stock Market Crash in 2016

By Tuesday, August 4, 2015
Stock Market Crash in 2016Less than a decade after the biggest financial crisis since the Great Depression, over-zealous central bankers are risking a second economic collapse. The continuous credit creation and rock-bottom interest rates in the U.S., China, the EU, and Russia are meant to incentivize lending, but really they are engineering a second, much larger, financial crash. Monetary stimulus provided the backbone for a global recovery by adding liquidity to the market and .

Gold Prices: 3 Reasons Why They’re Headed Astronomically Higher

By Friday, July 3, 2015
Gold PricesIn my 30-year career in the markets, the biggest profit plays I have seen were centered around getting out of an investment when everyone wanted in (NASDAQ tech boom of 1999, stock market boom of 2007, and now) and getting into an investment when few wanted it (gold in 2001, stocks in 2009, real estate in 2010). Depressed gold bullion prices are offering investors that once-in-a-lifetime “buy low” opportunity right .

Central Banks to Dictate Direction of the Gold Market?

By Thursday, May 7, 2015
Central Banks with GoldOver the long term, I am watching how central banks are reacting in order to assess the gold market. I believe they will be a major force driving the yellow metal prices higher. Central Banks with Gold Aren’t Selling You see, those who have the yellow metal stored in their reserves aren’t selling it. Consider the Central Bank Gold Agreement (CBGA) signed by the European Central Bank (ECB) and 20 .

Central Banks Creating Global Stock Market Bubbles

By Friday, April 17, 2015
Central banksIrrationality prevails in global stock markets and I believe it’s because of the actions of central banks. What’s happening with central banks and their involvement with equity markets not only is unprecedented, but it also will not end well. Japanese Stock Market Topping 20,000 Just look at the chart below of the Tokyo Nikkei Average—a key measure of Japanese stocks. Tokyo Nikkei Average Index ‘Tokyo Nikkei Average Index, 1996-2015,’
Chart courtesy of StockCharts.com The
.

Global Economy: Its Weakness to Impact U.S. Economy and Stock Market

By Wednesday, March 25, 2015
Global economy slowdownWith 20 central banks indicating they may lower interest rates even further, a world economic slowdown underway, and bellwether copper prices collapsing, U.S. multinational companies (and their stock prices) will not escape the malaise facing the global economy. Central Banks Concerned Regarding Global Economic Slowdown? The mainstream media will have you believe central banks across the global economy are slashing their benchmark interest rates. They are right. So far, more .
Sep. 4, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

Poll

For the rest of 2015, what's your take on the stock market?

View Results

Loading ... Loading ...
×
From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

Read this message