Before the Feds Emergency rate cut on Friday the bias was to higher rates across the board. For example the Australian Reserve Bank increased prime interest rates by 0.25% and even now after the stock market pummeling, continues to warn of more to come. This article explains why interest rates are about to go higher […]
There is an old market adage which says every Bull market contains the seeds of the next Bear market.
Not only is that true but we would extend it to read every correction brings into being the next up leg. And here I am referring to the Gold market.
Many new investors get turned off […]
In late July we published a piece called 2007 crash market stock update wherein we described the inter-market picture as shaping up to be eerily similar to that of the 1987 stock market crash.
In summary: We noted that the stock market had been ignoring a falling bond market in much the same way as […]
Uranium mining stocks once the darling of the resources sector have come off the boil. Is this a trend change or a pullback by a very overheated markets?
Until recently the market had been going gaga over uranium mining stocks. Some say it was classic bubble syndrome. New floats were coming to market at huge premiums […]
Gold Stock prices have been turned back from again major resistance. The 3rd time in a year! What does it mean? Are we entering another gut wrenching correction or will we reverse higher?
Can I be forgiven for asking if Gold shares will ever break out?
Chart 1- Gold Stock prices bouncing off major support for the […]
The ratio of Oil Stocks to Crude Oil Prices has been a good indicator of trends in the broader stock market. Since June this correlation has been breaking down with implications for both markets.
In a recent article on oil stocks we discussed why these stocks do not necessarily move in lock-step with the price of […]
The single biggest factor affecting credit and stock markets is the risk that sub prime carnage will spread to corporate bond rates. Unfortunately, a contagion now looks likely. Gold stock prices are responding favourably.
Here is an updated chart of credit spreads:
Chart 1 - Corporate Bond rates are rising quicker than Treasuries (the price is falling)
Chart […]
They say history doesn’t repeat it merely rhymes. If that’s the case, we may be setting up for a 2007 market crash. Take a look at this 1987 stock market crash picture:
Chart 1 - 1987 stock market crash picture
Since the early 80s the stock and bond markets had been motoring along nicely. Bonds […]
The Japanese play the yen carry trade themselves. Until recently they would convert Yen to Dollars and purchase US Treasuries. That trend looks likely to reverse, which should be very supportive of Gold.
If you thought watching the value of the Dollar go down the tubes was bad, take heart, the Japanese have it much worse […]
Market participants will continue their stock investing games as long as the Yen remains low.
Is the entire financial world being kept afloat by the Yen Carry?
[Ok, so yeah maybe I am infatuated with the Yen.]
Subscribers are probably sick of me showing this picture but I love it:
Chart 1- Shanghai index consolidating; Yen (bottom) about to […]
Sometimes it pays to step away from the daily gold stock price action and remind ourselves why we are in a MASSIVE Gold Bull Market.
Just how significant is the 80 level on the Dollar Index?
Take a look, you decide?
Chart 1 - US Dollar Index looking over the abyss
Gulp!
The Dollar Index (a trade weighted index […]
Unusual inter market trends may be reflecting a Fed bail out. The market value of gold is yet to reflect these changes.
Let’s face it, the sub prime market is a mess.
We’ve been watch credit spreads widen since early June. That is, investment bonds have been moving lower versus safer Treasury bonds. A break below support […]
The pound to dollar conversion rate is hitting historic highs of $2 to £1 and euro dollar conversion rates are also at historic highs. So why does the current value of Gold not reflect this?
Chart 1 - US Dollar index with gold prices chart below
The US Dollar has been moving relentlessly lower since the beginning […]
Article originally submitted to subscribers on 4th July 2007…
Oil Stocks are likely to outperform Gold Stocks over the next 6-months which should provide further support for the stock market.
A question I get asked a lot is where should I be investing my money?
“I’m a believer in the Commodity Super-cycle and in Peak Oil but gosh, […]
Years and years of monetary inflation have completely desensitized us to risk. From a national, corporate or even individual level, the availability of cheap debt has conditioned us to borrow without abandon.
And nowhere has the debt binge been more apparent than in the housing market. Low mortgage rates have been a boon for homebuyers and […]
Article originally submitted to subscribers on 13th June 2007…
The prospect of higher interest rates looms large.
New Zealand increased short-term interest rates to 8%. South Africa will follow soon and a string of other countries has threatened to tag along.
The cover story is that the economies of the world are so strong that Central Banks have […]
Shares outstanding 89.6m – fully diluted 98.4
Fundamentals:
Fairwest Energy first came to our attention in late 2005 at around 50c where we started to build our position. By early 2006 the stock had climbed to over $1 and we took a 50% profit on ½ our position.
FEC seems to us to be another junior producer which […]
Article originally submitted to subscribers on 3rd June 2007…
Here’s a significant story that’s not getting much play:
Chart 1 - 10-yr Bonds breaking below support
For over 2 months, Long Bonds have been marching relentlessly lower, breaking key support at 106.50 on Friday. The next downside target is the Jul 06 lows at 104 (which equates to […]
Here is an undervalued Gold Stock with properties in the historic Sierra Madre Gold Belt in Mexico…
Fundamentals:
Kimber Resources is a development and exploration company in the Chihuahua State of Mexico. Properties are located in the heart of the Sierra Madre Gold Belt a historic gold district.
Kimber’s flagship is the Monterde gold-silver property 260 […]
Article originally submitted to subscribers on 21st May 2007…
It took me by surprise!
I noticed that the Amex Oil Index had recently broken out to fresh highs after moving above a 1½ year congestion zone.
The first thing I wondered was - what does this meant for the price of Oil? Will it re-challenge its July ’06 […]