Financial Sense Newshour: Experts

Jim welcomes back legendary investor Jim Rogers this week. Jim sees China as successfully cooling its economy and avoiding a hard landing. Globally, he is concerned about both Europe and the US. He believes there is no true austerity in Europe, as deficits continue to rise. Jim sees the Federal Reserve as enabling government deficits, and continuing to massively print money. While Jim doesn’t see the precious metals markets as manipulated, he believes both gold and silver are headed higher. Jim owns both gold and silver and is not selling. If the price goes lower, he will buy more. His three favorite investments: agriculture, metals, and currencies. Jim is short US bonds and stocks globally. Jim’s latest book, “Street Smarts”, will be available in February 2013.

Jim welcomes back Bert Dohmen, President & Founder at Dohmen Capital Research Institute. Bert has just returned from Dubai and sees this dynamic country as the Singapore of the Middle East. Bert also sees the recent market sell-off as triggered by early tax selling. He doesn’t see economic conditions improving in the US, Europe of Japan, and believes there could be another financial crisis like 2008 if government spending is not controlled. Bert notes that 21 trillion dollars in fiscal and monetary stimulus in the US can’t produce more than a 1-2 % growth rate. His current outlook for investors is buy gold, and avoid (or short) the market.

Jim is pleased to welcome technician Craig Johnson CMT CFA from Piper Jaffray this week. Craig believes the long-term bull market is still intact in stocks, and sees investors as very fearful and “fighting the last war”. He also sees mutual fund managers as fearful as well, and unwilling to buy. Craig believes the S&P will hit 2000 in the next 24 months, but regards the bond market as “one gigantic bubble”. Also in this segment, Ryan Puplava has this week’s Market Wrap-up, Erik Townsend gives an update on commodities, and Rob Bernard has the Fixed Income Report.

Jim welcomes Nick Barisheff, CEO at Bullion Management Group. Nick sees gold moving higher by the end of the year, as Germany begins repatriating gold, and central banks have leased out massive amounts of gold, which Nick believes is the elephant in the room. He also notes that a number of bullion banks are sitting on large short positions in gold. Nick sees the current situation in simple terms; buy when prices are down.