The waiting game

I wrote this in September, but thought it would be worth sharing now.

I am still playing the waiting game with stocks.

What's Going on With Mr. Market?

There is still no clear sign on the direction of the stock markets. But there is a lot more volatility these days, so it's advisable to stick with companies which are very stable, especially in the precious metals space.

Bull Market Trend Continues

It's crazy, but we're still in a bull market.

But I'm not buying.

Don't get on the bandwagon just yet

But don't get off it either!

The major US stock markets are making new all time highs, and it's tempting to jump in. But that pesky indicator, the transportation market, has been refusing to catch up.

IF a fire is lit under the transportation sector as a whole, we'll be in business for yet another bull run.

I wait with bated breath.
 (that means I'm not selling or buying ... I'm holding)

Alternative thesis: Bull Market Continues

So an alternative thesis to the one I gave yesterday is that the current movements in the market is nothing but short term noise in a secular bull trend that is refusing to die, because it's underpinned by none other than the world's most powerful central banks.

Even in Canada, the recent election of Justin Trudeau has ushered in an era of Keneysian economics to the tune of 30 Billion CAD in the short moths since his election. And more is on the way.

And now the Bank of England has injected a precautionary 3.1 Billion pounds into it's banking system after the Brexit. Japan has pledged billions more to prop up it's banking system, and the US continues to keep intrest rates at historic lows.

Source

As long as central banks are allowed to prop up the stock markets, and as long as people keep buying, the status quo won't go away easily or quickly.

Like a kick in the face

For any precious metals investor who isn't a lightning fast HFT robot or the Bank of Nova Scotia, investing in Gold has been a proverbial and perpetual kick in the face.

But this might be ending ...

Here's all of the reasons why

1. Top US banks are now offering essentially 0% down mortgages. This is as, if not more risky than the subprime stuff that nearly tanked the global economy.
2. Foreign Central Banks are dumping US debt at the fastest rate since the 70s.
3. Central banks (except Canada ...) are still net buyers of Gold.
4. China now has one of the largest Gold exchanges in the world.
5. Smart money has been moving away from Riskier high yield bonds toward safer assets to the tune of billions of dollars in the last few months.
6. Brexit happened. This is a black swan sort of event in the sense that there is a lot of uncertainty now that the UK is officially out. Conservative economists are screaming bloody murder over Brexit.
7.  Debt to GDP ratios in just about every developed nation is utterly insane. Japan is up over 400%, the US is close to 200%, Greece and Ireland are up to 300%. It was thought that at 120%, your country's currency would collapse. Perhaps in the new math of the global economy, this is no longer the case. If all of the big players are adding debt liberally, then debt will perhaps become the new normal (or I'm thinking that's the hope). Perhaps the debt numbers will get so utterly massive that they will become an irrelevant abstraction. Perhaps they already are.

Each of these things leads me to believe that Gold is in prime position for a huge run.

A Year Later, Core Inflation Doesn't Look So Rotten

A Year Later, Core Inflation Doesn't Look So Rotten: Remember the attack on core inflation? Right about this time a year ago there was a wave of criticism aimed at the idea that core inflation—headline inflation less food and energy prices—is a useful predictor of overall pricing pressures. But a funny thing happened on the way to the lynching of core: the much-maligned concept for looking ahead turned out to be reliable… again.


To read the full story, visit CapitalSpectator.com

Three Stocks to Buy Now

June 11, 2012
by Money Morning
www.moneymorning.com

U.S. President Barack Obama addressed the nation last week to discuss the biggest issues facing the U.S. and global economies. Money Morning Chief Investment Strategist Keith Fitz-Gerald joined CNBC Europe on June 8 to take a closer look at what President Obama said; specifically, what he was right about and what he got wrong. Fitz-Gerald shared with viewers the three things that are needed for a true U.S. economic recovery. Fitz-Gerald also delivered three stocks investors should consider as the markets encounter fears over a recession in 2012/2013. Watch this clip for those three stocks.

Loading the player ...

Tags: Stocks to buy now

Source: Three Stocks to Buy Now - moneymorning.com

Jim Rickards' Interview with Casey Research

June 6th, 2012

According to Jim Rickards it's possible, but it won't happen without the US dollar being significantly weakened in the process through continued devaluation through continued central bank printing. This currency creation project that central banks are undertaking a story we are well aware of at Gold Avalanche, and it's one of the primary reasons we recommend holding gold today for the long haul.

Apple Watch - List of NASDAQ:AAPL Suppliers

By the Investment News Staff, Contributing Writer, Money Morning

In a fortuitous turn of events for investors, notoriously secretive Apple Inc. (Nasdaq: AAPL) released a list of more than 150 of its suppliers. But for investors, the list of suppliers is a potential a treasure trove. Although many of the names on the list were known, some are new and represent possible ways to play Apple without paying the premium for Apple stock.

Apple was compelled to release the list of suppliers to mollify critics who accused the Cupertino, CA,-based company of being complicit in questionable workplace practices in parts of its Asian supply chain. According to Apple, the list of suppliers represents "97% of Apple's procurement expenditures for materials, manufacturing, and assembly of Apple's products worldwide."

Apple Suppliers

AAC Technologies Holdings Inc.
AcBel Polytech Inc.
Acument Global Technologies
Advanced Micro Devices, Inc.
Amperex Technology Ltd.
Amphenol Corporation
Analog Devices, Inc.
Anjie Insulating Material Co., Ltd.
Asahi Kasei Corporation
AU Optronics Corporation
Austria Technologie & Systemtechnik AG
austriamicrosystems
Avago Technologies Ltd.
Brady Corporation
Brilliant International Group Ltd.
Broadcom Corporation
Broadway Industrial Group Ltd.
ByD Company Ltd.
Career Technology (MFG.) Co., Ltd.
Catcher Technology Co., Ltd.
Cheng Loong Corporation
Cheng Uei Precision Industry Co., Ltd. (Foxlink)
Chimei Innolux Corporation
Coilcraft, Inc.
Compeq Manufacturing Co., Ltd.
Cosmosupplylab Ltd.
CymMetrik (Shenzhen) Printing Co.
Cyntec Co., Ltd.
Cypress Semiconductor Corporation
Daishinku Corporation (KDS)
Darfon Electronics Corporation
Delta Electronics Inc.
Diodes Inc.
Dynapack International Technology
Elpida Memory, Inc.
Emerson Electric Co.
ES Power Co., Ltd.
Fairchild Semiconductor International
Fastening Technology Pte Ltd.
FLEXium Interconnect, Inc.
Flextronics International Ltd.
Fortune Grand Enterprise Co., Ltd.
Foster Electric Co., Ltd.
Fuji Crystal Manufactory Ltd.
Fujikura Ltd.
Grand Upright Technology Ltd.
Gruppo Dani S.p.A.
Gruppo Peretti
Hama Naka Shoukin Industry Co., Ltd.
Hanson Metal Factory Ltd.
Heptagon Advanced Micro-Optics Pte Ltd.
Hi-P International Ltd.
Hitachi-LG Data Storage
Hon Hai Precision Industry Co., Ltd. (Foxconn)
Hynix Semiconductor Inc.
Ibiden Co., Ltd.
Infineon Technologies AG
Intel Corporation
Interflex Co., Ltd.
International Rectifier Corporation
Intersil Corporation
Inventec Appliances Corporation
Jabil Circuit, Inc.
Japan Aviation Electronics Industry, Ltd.
Jin Li Mould Manufacturing Pte Ltd.
Kaily Packaging Pte Ltd.
Kenseisha Sdn. Bhd.
Knowles Electronics
Kunshan Changyun Electronic Industry
Laird Technologies
Lateral Solutions Pte Ltd.
Lens One Technology (Shenzhen) Co., Ltd.
LG Chem, Ltd.
LG Display Co., Ltd.
LG Innotek Co., Ltd.
Linear Technology Corporation
Lite-On Technology Corporation
Longwell Company
LSI Corporation
Luen Fung Commercial Holdings Ltd.
Macronix International Co., Ltd.
Marian, Inc.
Marvell Technology Group Ltd.
Maxim Integrated Products, Inc.
Meiko Electronics Co., Ltd.
Microchip Technology Inc.
Micron Technology, Inc.
Mitsumi Electric Co., Ltd.
Molex Inc.
Multek Corporation
Multi-Fineline Electronix, Inc.
Murata Manufacturing Co., Ltd.
Nan Ya Printed Circuit Board Corporation
NEC Corporation
Nippon Mektron, Ltd.
Nishoku Technology Inc.
NVIDIA Corporation
NXP Semiconductor N.V.
ON Semiconductor Corporation
Optrex Corporation
Oriental Printed Circuits Ltd.
Panasonic Corporation
PCH International
Pegatron Corporation
Pioneer Material Precision Tech
Prent Corporation
Primax Electronics Ltd.
Qualcomm Incorporated
Quanta Computer Inc.
Renesas Electronics Corporation
Ri-Teng Computer Accessory Co., Ltd.
ROHM Co., Ltd.
Rubycon Corporation
Samsung Electro-Mechanics Co., Ltd.
Samsung Electronics Co., Ltd.
SanDisk Corporation
SANYO Electric Co., Ltd.
SDI Corporation
Seagate Technologies
Seiko Epson Corporation
Seiko Group
Sharp Corporation
Shimano Inc.
Shin Zu Shing Co., Ltd.
Silego Technology Inc.
Simplo Technology Co., Ltd.
Skyworks Solutions Inc.
Sony Corporation
Standard Microsystems Corporation
STMicroelectronics
Sumida Corporation
Sumitomo Electric Industries, Ltd.
Sunrex Technology Corporation
Suzhou Panel Electronic Co., Ltd.
Taiyi Precision Tech Corporation
Taiyo Yuden Co., Ltd.
TDK Corporation
Texas Instruments Inc.
Tianjin Lishen Battery Joint-Stock Co., Ltd.
Toshiba Corporation
Toshiba Mobile Display Co., Ltd.
Toyo Rikagaku Kenkyusho Co., Ltd.
TPK Holding Co., Ltd.
Tripod Technology Corporation
TriQuint Semiconductor
Triumph Lead Electronic Tech Co.
TXC Corporation
Unimicron Corporation
Unisteel Technology Ltd.
Universal Scientific Industrial Co., Ltd.
Vishay Intertechnology
Volex plc
Western Digital Corporation
Wintek Corporation
Yageo Corporation
Zeniya Aluminum Engineering, Ltd.

source: http://moneymorning.com/2012/01/24/list-of-apple-inc-nasdaq-aapl-suppliers/

US Bond Market and the Week Ahead - April 20th 2012

By Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors

Treasuries were more or less unchanged this week. U.S. economic data was broadly in line with estimates and Treasuries didn’t move around much this week. One interesting data point that was released this week was housing permits, which rose faster than expected to 747,000 (seasonally adjusted annualized rate). This can be easily seen in the chart below and has finally broken out of the range that it occupied for the past three years. This appears to be a very favorable development, as new housing activity looks as if it is finally picking up.

Strengths

• As mentioned above, housing is showing some signs of life and appears to be picking up.
• India’s central bank cut interest rates this week and China has indicated a willingness to ease monetary policy in the near future. The global easing cycle continues.
• Retail sales rose a very strong 0.8 percent in March, well ahead of expectations and with broad-based strength. 

Weaknesses

• Spanish 10-year bond yields rose above 6 percent this week as the market rotates through southern Europe, with the current focus on Spain.

• Weekly initial jobless claims rose to 386,000 this week, continuing the recent trend of higher readings.

• The Bank of Canada has become more hawkish and indicated that rates may be headed higher on better-than-expected economic growth and higher inflation.

Opportunity

• After a disappointing first-quarter GDP result, the Chinese are likely to ease monetary policy as early as this quarter.

Threat

• Rising oil and gasoline prices combined with liquidity implications of global easing, led by Europe, may raise the prospect of a reappearance of higher inflation going forward.