Financial Sense Newshour

Jim is pleased to welcome back technician Stan Weinstein, editor and publisher of the "Global Trend Alert," a financial advisory service for institutional investors. Stan sees the possibility of a short-term correction, but believes the current rally has more legs, given that the S&P closed above 1600 on Friday. Stan is still clearly bullish in his outlook, and also notes the rapid sector rotations. If we get a correction, he believes it will be a controlled correction. Stan is neutral on bonds, and negative on gold, at least for the next few months. Also in this segment, Chris Puplava gives his macro outlook for the second half of this year, Erik Townsend looks at commodities, and Rob Bernard has the Fixed Income Report.

In this Big Picture segment Jim looks at the mechanics of inflation, and why stock prices are likely headed higher as a result. Jim notes that historically, every monetary inflation begins with a rise in stock prices. Jim also answers your Q-Calls in this segment of the Financial Sense Newshour.

Jim welcomes Alex Daley, Chief Technology Investment Strategist with Casey Research. Alex and Jim discuss Apple, and if it is a buy at current levels. Alex also discusses Apple’s transition from a rapidly growing tech company to a Blue-Chip company with a growing dividend. Apple’s share of the smartphone market is shrinking, and that will likely continue. But Alex also notes new catalysts for Apple with the coming “I-Watch”, the deal with China Mobile to produce and sell inexpensive smartphones in China, and Apple’s sizable and growing dividend.

Jim welcomes Frank Holmes, CEO and chief investment officer of U.S. Global Investors, Inc., which manages a diversified family of mutual funds and hedge funds specializing in gold, natural resources and emerging markets. Frank believes the two main factors determining gold demand are the Fear Trade (of inflation or economic crisis) and the Love Trade (gold jewelry demand- primarily from India and China). Frank also discussed why gold stocks have underperformed the metal; the old model of acquisition and production is broken. Frank sees a new model emerging, one that is more shareholder-friendly. After the recent hard landing, Frank sees the price of gold likely to remain in a consolidation period, until demand overwhelms supply.