Financial Sense Newshour

Jim welcomes back David Morgan of The Morgan Report. David believes the fundamentals are still strong for the precious metals markets, but investor sentiment is at or near rock bottom. He also sees the metals markets as the most manipulated of all markets. From his long experience, David knows that picking a bottom in the metals markets is extremely difficult. Accordingly, his advice in taking a position in either stocks or physical metal is to build your position gradually, and never buy all at once. 

Jim welcomes back technician Alan Newman, editor of Stock Market Crosscurrents. Alan notes that margin debt is at the third highest level in history and QE is the only thing holding markets together. He also believes that Quantitative Easing (money printing by the Fed) makes capital allocation more difficult. Alan sees the Fed foolishly building yet another bubble that can only end in tears. Also in this segment, Ryan Puplava wraps up this week in the markets, Erik Townsend discusses commodities, and Rob Bernard has the Fixed Income Report.

In this segment, Jim’s first topic is “Are we in a Recession?” Jim discusses a recent ECRI report that says yes, but Jim and The PFS Group say no, at least not yet. Jim notes that 60% of the leading economic indicators are still positive. Jim’s next topic is “What if they held a Bull Market and nobody came?” Jim notes that this past week set a record for the lowest participation rate from individual investors. Jim looks at valuations and notes that the P/E ratios on stocks have come down substantially since 2000, although many blue chip stocks have not moved substantially in price. Jim also answers your Q-Calls in this segment.

Jim welcomes Scott Rickards, founder and CEO of Waterfund LLC. Waterfund is pioneering a pricing benchmark for fresh water for actuarial purposes. The index will reflect the actual cost of producing and delivering water. The index will also allow for a hedge against the cost of water. Scott believes the index will unlock private capital to invest in water scarcity. Scott sees the users of the index as institutional investors, water retailers (such as water companies, miners and beverage firms) and governments and municipalities.