U.S. economy

Consumer Spending Anemic as 58% Say Economy “Getting Worse”

By Monday, August 31, 2015
Consumer SpendingI have written over and over again on how distorted the U.S. business sales and inventory figures are. Manufacturers are stockpiling products. Retailers are experiencing a decline in sales. Consumer spending is getting softer. But it’s more than just retail that is becoming a drag on the U.S. economy. Statistics from the U.S. housing market also point to very soft consumer spending. In July, the annual rate of new home .

Stock Market Crash: Americans Haven’t Been This Worried Since 2009

By Thursday, August 27, 2015
Economic CollapseChina’s stock market crash has left the global financial system teetering on the verge of a meltdown, and it has the folks on Main Street worried. According to Google Trends, Americans are searching more for “economic collapse” now than at any point since the last crash. U.S. search traffic for the term hit a record high in August, a remarkable feat considering we’re only three-quarters of the way through the .

Ron Paul: Federal Reserve is “99%” Responsible for Stock Market Crash

By Thursday, August 27, 2015
Ron-PaulImage by Gage Skidmore
Congress and the Federal Reserve have created a massive stock market bubble that risks plunging the world into a complete economic collapse in 2016. At least, that’s the opinion of former Congressman Ron Paul. “Socialism fails always because you have wage and price controls,” the three-time presidential candidate explained to Newsmax on Tuesday. “But we in the West have control of the economy and economic planning
.

Shocking: Copper Prices Show Markets of the Verge of Global Economic Collapse

By Monday, August 24, 2015
Low Copper Prices Indicator of Economic CollapseCopper continues to slide losses extending for seven straight weeks, suggesting sentiment towards the red metal is nothing but pessimistic. Analyst at Bloomberg Research, Kenneth Hoffman, explained the situation to Mining.com when he returned from a tour of China to find out the true state of copper demand in the country. (Source: Mining.com , last accessed August21, 2015.) Commodity prices have been under heavy pressure this year. Among them, Copper .

U.S. Economic Collapse: Growth in Share Buybacks Killing Job Numbers

By Friday, August 21, 2015
America Economic CollapseExecutives are spending billions buying back their own stock, but their efforts are slowing, destroying the American economy. A new report from Aranca Investment Research concludes that almost $2.3 trillion has been spent on buybacks since 2009, as corporate cash reserves have grown and borrowing costs have declined. More incredibly, over $1.0 trillion will be spent on corporate buybacks by S&P 500 companies in 2015, marking the fifth straight year .

U.S. Economy: Why Recession’s Knocking

By Friday, August 21, 2015
RecessionWhat used to be a leading indicator, the stock market has now become a lagging indicator. For months (in these pages), I have written about how sick the U.S. economy has become. Stock market investors are waking up to the reality that world economic growth is either non-existent or even contracting—albeit too late. The Dow Jones Industrial Average is now solidly in the red for 2015, down 832 points since .

U.S. Existing Home Sales Highest Since 2007

By Friday, August 21, 2015
U.S. Existing Home SalesThe U.S. existing home sales surged to an eight-year high. On Thursday August 20th, the National Association of Realtors published its report on exiting home sales for the month of July. (Source: The National Association of Realtors, August 20, 2015.) In July, total existing home sales increased two percent to a seasonally-adjusted annual rate of 5.59 million units in July from 5.48 million units in June. This marks the .

Bond Market: Alan Greenspan Warns of a 2016 Market Crash

By Thursday, August 20, 2015
Stock-Market-CrashUltra low interest rates have inflated financial bubbles and could spark a stock market crash in 2016. At least, that’s the warning from former Fed chairman Alan Greenspan. In an interview on FOX Business Network’s The Intelligence Report with Trish Regan earlier this week, Greenspan warned that the U.S. economy is stagnating. (Source: Fox Business, August 19, 2015.) “The basic problem is that we are not getting any .

New York Manufacturing Activity Drops to Lowest Since 2008

By Tuesday, August 18, 2015
New York ManufacturingNew York manufacturing activity posted its worst contraction since the financial crisis of 2008 last month, signaling to experts that the United States may already be in a recession. According to the Federal Reserve Bank of New York, the Empire State Manufacturing Index declined to a negative 14.9 from positive 3.9 in July—a reading not seen since July of 2009. Mind you, the negative number represents a contraction in the .

Donald Trump: China Devalued Yuan to “Suck the Blood Out of the U.S.”

By Friday, August 14, 2015
Donald Trump on China DecisionThe Republican frontrunner Donald Trump slammed China over the People’s Bank of China’s decision to devaluate its currency, saying “devalue means suck the blood out of the United States.”   “[China] continuously cuts their currency, they devalue their currency,” Trump addressed China devaluing its currency during a speech at the Lincoln Day dinner in Birch Run, Michigan; “They’ve been doing this for years—this isn’t just starting.” Following a slump in China’s .
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: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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