debt crisis

Market Indices Down After Fears of Greek Contagion

By Wednesday, July 8, 2015
S&P 500 TumblesWall Street opened lower on Wednesday, July 8, on worries over Chinese financial instability and Greece’s debt crisis remaining unsolved. The main Chinese index, the Shanghai Composite, plunged nearly 30% from mid-June. On Wednesday, the Shanghai Index dropped by 6.75%. Trading on nearly half of every stock listed was halted. The S&P 500 opened in red territory; down 15.03 points at 2,066.20 at the beginning of the trading session. As .

S&P 500 Opens Higher as Greece Talks Resume

By Tuesday, July 7, 2015
S&P 500 Opens HigherWall Street opened flat on Tuesday, July 7th, as talks between Greece and its creditors resumed. The U.S. trade deficit widened in May, reflecting concerns over weak global demand. European stocks continue to slide while the euro hit a five-week low against the dollar. In China, the stock market fell again despite the emergency measures by China’s central bank. Oil lightly recovered some ground after a selloff on Monday that .

S&P 500 Plunges 13 Points Sharply Down on Greece Debt Crisis

By Monday, July 6, 2015
Greece Debt CrisisWall Street opened sharply lower on Monday July 6, 2015, as Greek people rejected the bailout package by creditors on Sunday, putting the euro on edge. European stock markets plunged as Greece’s exit from the eurozone seems to be likely. After Greece overwhelmingly voted against conditions for a rescue package on Sunday’s referendum, many analysts and experts expected a closer result, or a “Yes.”  It remains uncertain whether Greece will .

Greece Debt Crisis: “No” Vote Could End in Economic Collapse

By Friday, July 3, 2015
Greece Debt CrisisOn Sunday July 5th, Greece citizens will vote on a referendum that may be remembered as the start of a global economic collapse. The referendum comes just days after Greece defaulted on its debt payments to the International Monetary Fund (IMF). (Source: Business Insider, July 3, 2015.) The small Mediterranean nation ran short of money on June 30th, despite running a primary budget surplus last year. Although the country .

S&P 500 Up on Strong Job Numbers in June

By Thursday, July 2, 2015
S&P 500 Up on Strong Job NumbersWall Street opened slightly higher on Thursday, July 2nd, as job growth slowed down in June, lowering the probability that the Federal Reserve will raise the interest rate this year. European stock markets traded lower and the mood was one of caution with Greece set to vote on a referendum on Sunday. Job growth slows down in the summer and labor participation shrinks an indication that the Federal Reserve may .

Stock Market Crash Feared Ahead of Greek Debt Talks

By Tuesday, June 30, 2015
stock market crashWall Street opened higher after suffering from the worst day of the year on Monday, June 29th. Eurozone stocks recovered after a devastating day on Tuesday but remained cautious as Greece moves towards default on a debt payment to the International Monetary Fund (IMF). The Greece government and its creditors failed to reach a deal over the weekend which forced the country to close all banks until Thursday and impose .

Stock Market Crash: Eurozone Economic Collapse Feared After Greece Bank Runs

By Monday, June 29, 2015
stock market crashInternational stock markets crashed on Monday, June 29, as fears of a eurozone economic collapse soured investor sentiment. A frustrating Greek crisis continues to hit the global markets, as the country closed all banks and imposed capital controls. Uncertainty surrounding the fate of Greece is dragging the equity market lower; the Greek stock exchange remained close and European stocks turned significantly lower. China’s stock market tumbled again on Monday. Plunging .

Why the U.S. National Debt May be Headed Towards Bankruptcy

By Monday, May 18, 2015
US National DebtOver the past few years, the U.S. national debt has increased drastically since the financial crisis. To give some perspective, since President Obama has taken office, U.S. public debt has jumped by $7.0 trillion. (Source: Committee Responsible Federal Budget, May 11.2015.) With stocks at an all-time high, people aren’t paying much attention to the U.S. debt level. But know this: rising national debt is a problem, and the U.S. debt .

National Debt Balloon Bearish for U.S. Dollar, Positive for Metals

By Friday, March 27, 2015
National Debt  turning into Debt crisisWith the U.S. government forecast to incur budget deficits year-over-year through to 2025, our rising national debt is turning into a debt crisis that will have long-term negative effects on our economy and currency valuation. In particular, two ticking debt time bombs are lurking nearby. Official National Debt Figures to 2025 According to the Congressional Budget Office, the U.S. government is expected to incur budget deficits each year until at .

The Greece Debt Crisis: Back in Four Short Months

By Monday, February 23, 2015
Greek Debt CrisisThis past Friday, we got news of Greece’s debt extension. The headline at the Financial Post said it all: “Greece and its EU paymasters reach accord to keep bailout funds flowing for four months.” (Source: Financial Post, February 20, 2014.) With the news, the Dow Jones Industrial Average, which spent most of the day flat, jumped 157 points to a new record closing of 18,140. Yes, the Dow Jones .
Aug. 31, 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 2.71%
10-year U.S. Treasury Yield 2.14%

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.

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From: Michael Lombardi, MBA
Subject: The $2 Silver Stock Every Investor Should Own!

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