1. Take Warning: The Next 94 Days Could Be Bad for Your Wallet
by Bill Bonner of The Diary of a Rogue Economist
Our proprietary short-term stock market indicator has turned starkly negative. The near-term outlook is darkening.
Our model suggests a MINUS 6.4% return from the stock market over the next 94 days. Take warning.
….continue reading HERE
by Ned W. Scmidt via Mark Leibovit
Imagine you could go back in time so you could buy some investment at a bargain.
$Gold is now priced relative to stocks as it was in 2007. $Gold closed out that year at about $830, before it began its run to $1,900.
An under valued asset needs a catalyst to correct the mispricing. As we look around the world, many potential possibilities exist to be the “trigger” for higher Gold prices.
But, not owning Gold and continuing to play the greater fool game in U.S. equities does not seem wise given the history of both Gold and stock manias.
….continue reading HERE
3. Why Investors Should Be Terrified, In One Chart
See below for the relationship between margin debt — money borrowed by retail investors against their stocks and used to buy more stock.
Today the gap is wider than it’s ever been. If history is a valid guide, the two lines will shortly cross somewhere around 1,000 on the S&P, or about 50% lower than current levels.
