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Strong

Brexit Leads To Uncertainty, But It's Good For Gold

The Brexit vote adds uncertainty to an already turbulent global environment, says money manager Adrian Day, and has helped gold resume its rally.

Brexit Wall

The decision of the British people to leave the European Union in the face of extreme fear-mongering shook the markets initially, but they turned up at quarter end. The vote does not end the uncertainty, of course: the negotiations on Britain's exit, increased agitation against membership in other countries, the change of political leadership in Britain, as well as the potential break-up of the United Kingdom, all add uncertainty to an already turbulent global environment, and markets do not like uncertainty. Brexit also provides yet another reason excuse for the Federal Reserve and other central banks to keep interest rates excessively low for longer. [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/FSJeev6kR6s/17036

Pick Almost Flat For Year, But Has Room To Move

INO.com's Stock of the Week

It's been 6 hours since our Stock of the Week subscribers received our latest pick. Before the opening bell, we sent the full analysis for this hand-picked stock to the inboxes of those who have requested this complimentary resource.

Send me this week's stock.

This week's pick is a solid growth story that should continue to move forward regardless of what happens to the economy in the short term. The stock trades in line with its competitors, but comes with a relatively high long-term growth rate of 7% for a company valued at more than $210 billion.

Perhaps the biggest selling point for investors though is the stock's defensive capabilities. It has proven to be a great investment no matter the market conditions. When times are great, people buy this company's products. When times are tough, people buy this company's products.

Right now our analyst, Daniel Cross, believes that this stock can offer a 14% return based on the current valuation and the stock's dividend yield.

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Following Brexit, Central Bank Desperation Never More Evident

Precious metals expert Michael Ballanger discusses market reactions post-Brexit vote.

To truly appreciate market crashes, you must have an ample serving of grey hair.

Over the weekend, I must have received three dozen "Emergency Email Alert" notifications by newsletter services and financial intermediaries that got absolutely obliterated Friday morning and were expecting more of the same on Monday, which they got in spades. This new generation of "wealth advisors" has, unfortunately, been living off the largess of Central Bank guarantees and the winks and nudges of the "Finance Ministers" and "Treasury Secretaries" and "Chancellors of the Exchequer," where they make investment decisions based not upon analyses of balance sheets or income statements but upon the collective wisdom of Champagne Socialists. I have been writing about this for about thirty-five years and while it has not yet manifested itself in the advance of the prices of precious metals to levels that would correspond to the level of coinciding currency debasement, especially in the United States and Europe, it is going to be the "Talk of the Town" here in 2016. [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/UuE9gOVa6fs/17024

The Fed Giveth and the Bullion Banks Taketh Away…

Precious metal expert Michael Ballanger breaks down the gold price roller coaster surrounding the Fed's decision not to raise interest rates.

Ballanger chart cover

Janet Yellen just blew all remaining semblances of credibility believed to be still present at the U.S. Federal Reserve Board.

We have all heard for the past month or so that the Fed was going to hike the Fed Funds rate at today's meeting, the anticipation of which caused a rally in the U.S. Dollar (USD) and a surge in stocks - all while the bond market was rallying in response to weakness in the macroeconomic environment.

Well, they didn't raise as predicted back in March because of "China weakness," so today they didn't hike because of "soft exports" and "vulnerabilities in the global economy" and "Brexit worries" and a host of other totally clueless hypothecations. But the bottom line is that they didn't hike because the ensuing dollar rally would impair the collateral that underpins the massive debts owed by governments and homeowners to the banks that hold that debt. Stocks reversed lower when it became clear that the Fed has absolutely zero control over the U.S. economy, and is now truly caught in the headlights because banks are getting killed with the yield curve this "flat," and since the Fed's shareholders ARE "the banks," it takes on an aura of the surreal. [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/3pvSUQUw-P8/17009

George Soros Making Big Bets on Gold

George Soros has joined fellow billionaire investors Stan Druckenmiller and Ray Dalios on investing big in gold. Precious metals expert Michael Ballanger explains what is behind these moves.

This week George Soros once again came out with his very large directional "bets" for the SP 500 and for gold and, needless to say, Mr. Soros is once again shorting the SP and buying gold and gold miners, joining Ray Dalio, Stanley Druckenmiller and Michael Ballanger (just kidding) in a decidedly unpopular stance. Carl Icahn came out in agreement during a CNBC interview this week that left the interviewer near-speechless and groveling in the mud of anti-Wall Street rhetoric.

In the meantime, some of the smartest investors I know are SOOOO bullish on gold that they are buying huge baskets of penny explorers under a nickel because of the leverage contained when the public finally decides to re-allocate to include gold (and mining stocks). A fund manager I know said to me, "Must be the top!" in reference to this, but it really can't be the top after a five-month rally representing the largest recorded quarterly advance in mining shares since recordkeeping began.

Look at the chart above and think what would happen if we were to get a shift from bonds to gold; 49% of global asset allocations reside in bonds while 1% reside in gold. Now, consider these two facts: [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/kBRgCx6mCRc/17006

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