Wednesday, September 18, 2019

Four Flashpoints of Volatility

by Jim Rickards, Daily Reckoning:

1 – Trade Wars Flashpoints, From China to Canada and Mexico
Wall Street has knee-jerk reactions to any trade war related headlines.

There are legitimate reasons to be concerned about trade wars. The world is increasingly more connected than ever. Many major American companies that are household names such as Starbucks (SBUX), Boeing (BA) and Apple (AAPL) rely on their exports (and imports) from China for a sizable portion of their overall sales and profits.

If China continues to retaliate against trade war policies from the U.S. with harsh measures of their own, it could hurt revenues of those firms.

Roaring Back, Cryptos Burst Onto the Scene… But for How Long?- Nathan McDonald

by Nathan McDonald, Sprott Money:

As predicted towards the end of last year, Cryptos have trended lower—much lower—throughout the first few months of 2018.

From a contrarian investor’s perspective, this came as no surprise, as the masses rushed into the streets and those who scarcely could say the word “Cryptocurrency” dove in with both feet.

This is always a red-hot warning sign. Especially when compounded with the fact that the majority of those joining the party in the late hours were saying that “it can never go down”, “Lambo’s for all!”, and other statements that are frequently made near a bubble top.

Market Report: Break-Out Hopes Dashed

by Alasdair Macleod, GoldMoney:

After inching better on Monday and Tuesday, gold and silver finally made a break for it on Wednesday in good volume on Comex, with gold peaking at $1365 intraday, and silver at $16.87. Those of us watching gold’s established trading range, and silver’s extreme oversold position thought this could be the start of a major breakout to the upside. Those hopes were dashed on Thursday, when both metals retreated, giving up most of their gains on the week.

“Americans Not Ready For the Stock Market Crash” — John Williams

from TradCatKnight:

Special guest John Williams of SHADOWSTATS joins me to discuss: the latest embellished economic numbers, push for automation affecting the unemployment rate, international trend on the banning of cash, crypto currency, Trump, trade wars, the real threat of war?, big banksters buying more time, most Americans not ready for the stock market crash coming, practical advice for the stock market crash and MUCH more!

Silver Mine Output Drops for Second Straight Year; Industrial Demand Up


by Peter Schiff, Schiff Gold:

Global silver mine supply dropped for the second straight year as industrial demand rose for the first time since 2013, according to the World Silver Survey 2018 produced by the GFMS team at Thompson-Reuters and released by the Silver Institute this week.

Industrial demand for silver rose 4% to 599 million ounces last year. Solar panel fabrication primarily drove the growth. Photovoltaic demand climbed 19% as solar panel installations worldwide rose 24%. Brazing alloy and solder silver fabrication also increased, rising about 4%.

This Really Is The Everything Bubble: Even Subprime Mortgage Bonds Are Back


by John Rubino, Dollar Collapse:

Record student loan balances? Check. Trillion dollar credit card debt? Check. Six tech stocks dominating the Nasdaq? Check. Subprime auto loans at record levels? Check.

All that’s missing is subprime mortgages and we’d have every bubble base covered. Oh wait, those are back too, just under a different name:

Subprime mortgages make a comeback—with a new name and soaring demand
They were blamed for the biggest financial disaster in a century. Subprime mortgages – home loans to borrowers with sketchy credit who put little to no skin in the game. Following the epic housing crash, they disappeared, due to strong, new regulation, and zero demand from investors who were badly burned. Barely a decade later, they’re coming back with a new name — nonprime — and, so far, some new standards.