Financial Sense Newshour on the Markets

Jim welcomes Dan Steffens, the President of Energy Prospectus Group (EPG), a networking organization based in Houston, Texas. Dan publishes EPG’s newsletter, “The View From Houston”. Dan discusses his views on natural gas, and lays out the case for higher natural gas prices ahead. Dan and Jim also discuss the energy stocks, and Dan advises investors to look for companies that balance natural gas and oil production, and can switch back and forth as market conditions warrant.

Jim welcomes back Shelley D Moen CMT, Senior Market Strategist at Vermilion Technical Research, LLC. Shelley tells Jim that this is the best she has felt about the market since the bottom in 2002. She notes the Dow Theory buy signal, and believes this market has room to move higher. Shelley mentions that the Technology, Energy and Industrial sectors are all undervalued and very attractive at current levels. Also in this segment, Ryan Puplava has this week’s Market Wrap-up, Erik Townsend discusses commodities, and Rob Bernard has the Fixed Income Report.

Jim is pleased to welcome Jeffrey Saut, Managing Director of Research at Raymond James Financial. Jeff mentions that many investment managers and other professionals are feeling “performance pressures” from having missed the recent rally, as well as others that have underperformed by emphasizing international equities over US-focused equities. Jeff does not think the dividend play of recent years is extended, as payout ratios average only 32% of earnings on the S&P index, compared with historical norms of 50% payout ratios.

In the first Big Picture topic this week, Jim looks at the next stock market rotation. He believes it will focus on the energy, technology and materials sectors, all of which are currently unloved, unappreciated and undervalued. The next topic will be the monthly conversation, On The Record, where John asks Jim questions of timely and topical importance. Some of the topics covered include why Jim is optimistic on stocks, why you don’t want to store your bullion at a Wall Street bank, what distinguishes Jim’s practice from others in the industry, and why QE will end badly.

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.

Jim welcomes back Eoin Treacy, Global Strategist at Fullermoney, a division of Stockcube Research Ltd. in London. Eoin is favorable toward US markets, noting contracting P/E’s and rising dividend yields on US stocks. He believes the US has an advantage over other countries, and sees US multinational stocks leveraged to the global economy as the best place to invest. Bond investors are reluctant to change their strategy, and Eoin doesn’t see them moving into stocks until they start losing money in bonds.

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.

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.