Marc Faber, editor of the “Gloom, Doom & Boom Report,” has advised investors that now is a good time to invest in gold because stocks will crash over 40% and the world is on the verge of a new liquidity and debt crisis.
Faber says investors would be prudent to diversify into safe haven in gold bullion which has risen 3% this year and is currently at $1,096 an ounce.
He recently told MarketWatch that the stock-market downturn could result in stocks hitting lows not seen in five years.
Submitted by Tyler Durden on 01/20/2016 - 16:04
Submitted by Tyler Durden on 01/20/2016 - 15:15 CNBC’s Andrew Ross Sorkin and Becky Quick, donning their finest goose down bubble coats to remind viewers they’re reporting live from scenic Davos, generously took some time out of their busy schedules to chat with Ray Dalio on Wednesday and unsurprisingly, the “zen master” again predicted the Fed will reverse course and embark on more QE.
Submitted by Tyler Durden on 01/20/2016 - 18:30
Submitted by Tyler Durden on 01/20/2016 - 18:02 The upcoming winter storm hyperbole factor just went up a notch, this time courtesy the Weather Undereground's Bob Henson, who has decided that merely "historic" is too cut and dry, and has instead dubbed the imminent climatic phenomenon not only "potentially epic" but a "winter blockbuster" to boot.
Submitted by Tyler Durden on 01/20/2016 - 17:40 Unfortunately, what we are facing now is a predicament, rather than a problem. There is quite likely no good solution. This is a worry. During the last 18 months we have read incessantly that low oil prices, for example, $30 per barrel oil, will stimulate the economy, and the economy will soon bounce back. What is wrong with this story? A lot of things, as we see it...
Submitted by Tyler Durden on 01/20/2016 - 17:15 "Provisions will still be distributed twice a month as usual"...
Submitted by Tyler Durden on 01/20/2016 - 17:13 Many people wondered what the trigger for today's massive short-squeeze was. We may have found the answer. Right as the "Most Shorted" stocks started to soar, someone decided to buy offshore Yuan with both hands and feet (yes in the middle of the US day session). This held up until the NY close... and now offshore Yuan is fading back fast. So did China's "National Team" step in to save the world today?
Submitted by Tyler Durden on 01/20/2016 - 16:50 While we may poke fun at North Koreans’ gullibility, frankly we don’t find the idea of ‘hangover-free alcohol’ any dumber or less deceptive than the idea of ‘consequence-free debt’. Or the idea that you can print your way to prosperity. Hangover-free alcohol is pretty silly. But in the West, we believe the biggest lies of all...
Submitted by Tyler Durden on 01/20/2016 - 16:36 With December's seasonal shenanigans out of the way, and following 2 record-breaking weekly builds in gasoline stocks, with expectations of a 2.3mm barrel build API reported a large 4.6mm inventory build (double expectations) . Cushing inventories built 63k, rising for the 12th week in a row. Gasoline stocks rose once again (+4.7mm) and Distillates also (+1.5mm). Following crude's v-shaped recovery today, API's huge build sent WTI back lower...
Submitted by Tyler Durden on 01/20/2016 - 16:30 Just when we thought the surreal story surrounding Mexican drug lord Joaquin "El Chapo" Guzman's second capture couldn't get any more bizarre, it does just that, but in an oddly satisfying way, one which ties the soon to be incarcerated criminal south of the border with a criminal located right inside Washington D.C., one who however will never be punished. According to the Hill, a .50-caliber rifle recovered from El Chapo's hideout was one of the firearms lost by the U.S. government's gun-smuggling operation Fast and Furious.
Submitted by Tyler Durden on 01/20/2016 - 15:46
Submitted by Tyler Durden on 01/20/2016 - 15:45 Liu Lang, a Chinese migrant worker, left his rural hometown in Sichuan Province two decades ago to work in the factories of the southern province of Guangdong, China’s manufacturing powerhouse. Now, he is moving back. “I worked my way up from a basic worker to a department head. And my career basically ended today,” Mr. Liu said on the train leaving Guangdong. Factories in Guangdong have been hit hard by the slowing economy, and many of them have closed, including the shoe factory where Mr. Liu worked.
Submitted by Tyler Durden on 01/20/2016 - 15:40 As Xi Jinping makes his first Presidential visit to the Mid-East, the Saudis are anxious to secure their interests in the Asian oil market. In an effort to get a leg up on Iran, Saudi Aramco is setting itself up to invest in Chinese refineries, a move that would put Riyadh in a "favorable position at a time of increases supply from other countries."
Submitted by Tyler Durden on 01/20/2016 - 15:25 "People like me who have saved all their lives realize that they their savings (no matter how much) will never throw off enough money to allow retirement, unless I live off principal. This is especially so since one can reasonably expect social security to phased out, indexed out or dropped altogether. Accordingly, I realize that when I get to the point when I can no longer work, I'll be living off capital and not interest. This is an incentive to keep working and not to spend."
Submitted by Tyler Durden on 01/20/2016 - 14:59 After the lifting of sanctions in Iran this week, expectations for increased oil output has put further pressure on oil prices with both Brent and West Texas Intermediate prices dropping to the lowest levels seen this century. In the US, embattled producers are finally being forced to consider ceasing production as banks reign in on credit lines for fear of rising bad debts.
Are you really going to take financial advice from someone who gets his ass kick by a piece of exercise equipment???
Submitted by Tyler Durden on 01/20/2016 - 14:58 You know America's economy (and politicians) has become entirely financialized when Senate Democratic leader Harry Reid says the following:
*REID: LAWMAKERS SHOULD `STAY CALM' DESPITE STOCK MARKET DROP
*REID: TOO EARLY TO TALK ABOUT RESPONSE TO STOCK-MARKET DROP
Stocks are down 10% from their highs after doubling or more for 6 years. Speechless.
Submitted by Tyler Durden on 01/20/2016 - 14:40 Last week we asked (and answered) whether capitulation was close (the answer - no). Earlier this week, we noted that the equity market remains stubbornly in denial that things could get much worse (even as credit and eurodollar markets suggest otherwise). Today we get a double whammy of confirmation as Goldman warns that the current drawdown could be significantly worse than August's (and markets are not pricing in the risk) and then DoubleLine's Jeff Gundlach warning that "this is not stopping any time soon."
Submitted by Tyler Durden on 01/20/2016 - 14:21 Since last May, the stock price of SHAK has... declined, to put it politely. As a result, we decided to update the chart below to show the valuation per restaurant (updated for the most recent number of restaurants). Here is the sad result...
Submitted by Tyler Durden on 01/20/2016 - 13:54 At 1245ET, someone decided that the shorts had done enough damage and investors suddenly rushed "flight to safety"-like for the GPROs, TWTRs, FITs, and Biotechs of the world. This unleashed a massive short-squeeze among the "most shorted" stocks...
Submitted by Tyler Durden on 01/20/2016 - 13:43 The airwaves in the United States were filled with images of sailors on their knees while a US Navy vessel was searched. Unjustified outrage swept the nation. The US Secretary of Defense blamed the incident on a simple navigation error, however a chain of events leading back to 2009 demonstrates the facts are a little more complicated than first appear. The chain of events leads defense analysts to one unmistakable conclusion: Iran has the ability to disrupt US GPS systems.
Submitted by Tyler Durden on 01/20/2016 - 13:21 The end of America’s oil “miracle” is coming and there’s nothing Wall Street can do to stop it. At this point in the game, no one is going to finance the oil patch's cash flow deficits and the fundamentals in the oil market are laughably bad. As Bloomberg reports, Wall Street is about to have a serious bout of “indigestion” because recent auctions suggest that “some bankrupt oil and gas drillers can’t give their assets away.”
Submitted by Tyler Durden on 01/20/2016 - 13:05 Just before the US equity market topped out last August, none other than infamous stock-chart-extrapolator Laszlo Birinyi ventured on to CNBC and proclaimed that the S&P 500 will hit 3,200 by the end of 2017. Since the soprano uttered that extreme, US equity markets have collapsed not just once, but twice and now trade at levels first seen over two years ago...
Submitted by Tyler Durden on 01/20/2016 - 12:47 Having bounced higher off the 50-day moving-average 3 days ago, gold has surged back above $1100 this morning, pushing back above the crucial 100-day moving-average. Silver has also broken above its 50-day moving-average.
Submitted by Tyler Durden on 01/20/2016 - 12:42 "The return to monetary stability does not generate a crisis. It only brings to light the malinvestments and other mistakes that were made under the hallucination of the illusory prosperity created by the easy money."
Submitted by Tyler Durden on 01/20/2016 - 12:39 History repeats, if you're just willing to listen. The "Dead-Cat-Bubble" is dead as global stocks enter a bear market (down 20% from May 2015 highs) and US equities catch down to the rest of the world.
Submitted by Tyler Durden on 01/20/2016 - 12:27
Submitted by Tyler Durden on 01/20/2016 - 12:04 To the extent we believed there might be a shred of honesty and/or dignity buried somewhere in the bowels of the government body tasked with policing the derivatives market, our hopes were dashed on Tuesday when we learned that the Commission’s auditor has withdrawn “nearly a decade” of financial opinions after discovering that the books may be cooked.
Submitted by Tyler Durden on 01/20/2016 - 11:45 Led by a broad-based collapse in financial stocks, European markets extended and accelerated their plunge today. Thanks to the increased systemic linkages enforced by The ECB, peripheral sovereign risk is spiking as their national banking systems crash. Every European nation is now in at least correction since the end of QE3.