Financial Sense Newshour
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.
Axel Merk of Merk Investments LLC joins Jim to look at the “fiscal cliff” and other issues facing Washington. Axel believes the bond vigilantes will eventually show up and the fireworks will begin in the bond 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 looks at three important Big Picture topics in this segment. In the first, “Down Payment and the Grand Bargain in 2013”, Jim discusses how the politicians will cut a deal to avoid falling off the “fiscal cliff” next year. Whether it will solve any problems is another matter.
In this week’s Lifetime Income Series, Jim looks at three different topics. In “Bad News For Junior” Jim discusses the reports that say Baby Boomers will continue to spend on their lifestyle into old age, thus leaving less for their children.
Jim welcomes back Louis-Vincent Gave, CEO at GaveKal in Hong Kong. Louis believes the Chinese market has bottomed, and there is value to be found there, particularly in RMB bonds. He sees tax increases in the US as a short-term headwind to the markets, and looks to a “Dogs of the Dow” strategy as the most sensible way to invest in the US near term. Louis also sees increasing merger and acquisition activity as a big story in 2013.
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.
Jim welcomes back Brian Pretti CFA, Managing Editor at ContraryInvestor.com. Brian sees a likely political compromise on the “Fiscal Cliff” tax increases and spending cuts due to start in January. They will cut a deal, or at the least, postpone any decision until later in the year. Brian also discusses the sorry state of the economy in California, and how recent significant tax increases won’t help matters. Brian and Jim also discuss the state of the markets post-election.
In an urgent follow-up to his best-selling Why Your World Is About To Get A Whole Lot Smaller, Jeff Rubin argues that the end of cheap oil means the end of growth. What it will be like to live in a world where growth is over?
Jim welcomes famed technician Stan Weinstein back to the program. Stan believes U.S. markets have just entered a bear market and says long, intermediate, and short-term trends have turned negative.