Big Pictures: Stocks, Gold and the Miners

Ukraine war hype, China demand drop, GOFO mysteries… these are the short term noise inputs on the gold sector.

US Treasury bond yield spreads, gold vs. commodities (i.e. the 'real' price of gold), gold vs. the stock market… these are some of the fundamental considerations that actually matter and they have taken a hit since January.

It is easy to say 'I am bullish in the big picture' (measured in years) but it is not so easy to actively manage in the smaller pictures (measured in days, weeks and months) with all of the above noise inputs and more bombarding the poor individual player.

We use shorter term charts to manage the shorter time frames.  Daily charts have most recently indicated a bearish set up as bear flags formed across the precious metals complex (with the exception of silver, which never got going to begin with) last week.  Weekly charts continue to indicate that an extended and oh so grinding bottom may be forming, but that includes the potential for ups and downs, also known as volatility. Continue reading "Big Pictures: Stocks, Gold and the Miners"

Why The Market is Ripe for a MAJOR Shift

PIMCO CEO and all-round market egghead Mohamed El-Erian coined the term "The new normal" during the financial crisis of 2008.

El-Erian's new normal is defined by slow economic growth, persistent unemployment and an accommodative fiscal policy from global central banks and volatile markets.

This new normal results in meager bond yields of only 2% and a tepid return from equity investments. Up close, this seems like an accurate description of today's economy. But if you step back and look at the bigger picture, then maybe the new normal is just becoming the "old normal" again. Continue reading "Why The Market is Ripe for a MAJOR Shift"