Financial Sense Newshour

Jim is pleased to welcome back Brian Pretti CFA, Managing Editor at ContraryInvestor.com. Brian says to brace yourself for the flight of global capital coming into the US later this year. For now, all roads lead to the dollar. Brian believes the first wave will come from capital fleeing both Europe and Asia. Brian and Jim also discuss the new Japanese monetary policy and how this will unleash a flood of cheap money on the globe. This will encourage sophisticated investors to borrow in Japan, invest in the US, and pay back the loan in cheaper Yen, increasing the return substantially.

Jim is pleased to welcome back legendary technician Ralph Acampora, Director of Tactical Investments at Altaira Wealth Management. Ralph sees the market in a corrective mode, which could last a month or so. He notes divergences in the Transports and the DAX. He sees the US and Japan as the best places to invest, and believes the secular bull is still in the early stages. However, Ralph sees the bond bull-market in the 9^th inning of its long 30 year run. Also in this segment, Ryan Puplava wraps up this week in the markets, Erik Townsend discusses gold and commodities, and Rob Bernard looks at bonds and interest rates in the Fixed Income Report.

In this segment of the Big Picture Jim looks at the large decline in gold and silver, and gets into the reasons behind the carnage, as well as the huge difference between “physical gold & silver” and “paper gold & silver”.  Jim notes that investors should know why they own gold, understand it, and then leave it alone. Also, Kathy Derbes CFA, and CEO of KDerbes Precious Metals LLC, joins Jim in this segment. She notes the current record buying of physical precious metals, last seen during the Lehman crisis, and says her firm is “completely out” of Silver Eagles. Kathy is not even taking orders for more Eagles, as it may take six to eight weeks or more to acquire them.

Jim welcomes back Dave Lauer, a Market Structure and Technology Architecture Consultant. His most recent work includes public policy with Better Markets and technology architecture with IEX, a new equity market. Previously, he worked as a senior quantitative analyst at Allston Trading and Citadel Investment Group. Dave believes the cops (regulators) are not on the beat, and this puts individual investors at a distinct disadvantage. He sees HFT traders as manipulators of the market without fear of punishment. Dave says the “uptick rule” must be reinstated to protect the individual investor, but the Wall Street lobbying machine convinces both regulators and legislators that it isn’t necessary. With money and influence on their side, the Robo Traders are becoming the Robber Barons of the 21^st century.