I am, as usual, keeping an eye on the seemingly manipulated numbers for the major stock averages, bond yields, and metals prices. As I normally do, I keep the sound off because the constant cheerleading, Trump-bashing and dissemination of less than factual information in many cases makes me sick.
How anyone can watch any of the mainstream media is beyond me. Every channel repeats the same stories over and over and presents them in their own way. I remember during Obama’s administration they were going to have a presence in all of the national newsrooms to let them know which stories are “important”. It appears to me that they must have not only stayed but have taken over completely.
I watch a lot of World War Two history and there is a lot of information about the Nazis and how they came to power. One of their main tools was propaganda. One piece of their propaganda is that if you tell a lie enough times it becomes the truth. I suggest you beware our mainstream media!
Many, like myself, try to get information from MANY sources. Of course, in possibly trying to keep everyone in the dark Youtube and others are banning many alternative channels and labeling them as hateful, etc. They all seem to have one common thread. They don’t follow the mainstream’s memes but actually dig for facts and back up their points of view with actual proof rather than beliefs or innuendo.
Many believe that because the major stock indexes are rising all is well. This is what the corporate media is espousing. However, take a look around. How many millennials are deeply in debt and can’t find a job that pays enough to service that debt? How many 50 somethings have totally given up hope of ever finding a decent job again? How many reports are in the mainstream media about companies having two sets of books- one set for Wall Street and another to the SEC using Generally Accepted Accounting Principles?
How many reports are on the nightly news about Venezuela and their civil war? How much do you see about the riots in Greece every week? Has anyone heard about the skirmishes between Indian and Chinese armies in the Himalayas? Is anyone reporting that the NY Fed just put out a report that the average US household has hit a new record for debt- surpassing the old record set at the peak of the 2007 debt bubble? Part of the report states that “: Flows of credit card balances into both early and serious delinquencies climbed for the third straight quarter- a trend not seen since 2009”.
How many reports have there been about the bank bail-ins in Europe this year or the bailouts of Italian banks this year. There is eerie silence on many of these issues which, IF reported might give the average fellow a chance to prepare for what may be coming at us.
My belief is that all of this mindless chatter about Trump, etc. is all meant to keep our attention off of what is actually happening. What is happening is that we are seeing signs everywhere of economic weakness, geopolitical tensions, instability in many markets, declining sales virtually everywhere outside of defense and particularly in retail, restaurants, and automobiles. This is screaming that the consumer (70% of our GDP) is probably tapped out. Rising credit balances and defaults are more clear evidence of what I am saying.
With the majority of our population counting on some sort of pension in the future (or now) where is the reporting of pension plans of ALL types being grossly underfunded with stocks and bonds at historical highs? Where are the reports of pension plans of all types missing their 8% or so mandate by almost the entire amount in fiscal 2016? (Governing.com-Liz Farmer)
I met with someone recently and mentioned that some of the most respected investors around- the Ivy League endowments overall LOST money in fiscal 2016. Yale made 3.4%, Princeton made 0.8% and every other endowment lost between 0.9% (Columbia) and -3.3% (Cornell). (MPI Research)
I was asked “How does that happen with stock markets going up like they are?” My answer is that I don’t have access to their investments but they must not be invested in the markets that appear to be grossly overvalued. Maybe those that know the most (supposedly) are already avoiding what they believe could be an epic downturn. This says to me that they may have been fearful that it could have started at any time already. Buyer beware!
After last week’s upturn in the price of gold and silver I have been paying attention to the antics of those whom I believe need to keep the price suppressed to either make money on their short positions, buy the actual metal at a discount- or both. As I am writing this at around noon on Wednesday a chart on Kitco shows- no surprise- that there was a cascading decline in the middle of night in the gold price. We will likely find out later in the week that a billion or more of seemingly non-existent “gold” was sold at that time when no buyers were around. Then again, another cascading decline right at 9:30 (a little more unusual) right when Wall Street opened for business. The price is still slightly up as I write this despite the efforts to keep it down.
It appears to me that all of the “facts” that everyone “knows” are at best not 100% accurate and in many cases probably meant to deceive in some way. Certainly, perceived weakness in metals prices based upon naked shorting in the market by big players deceive almost all because they are not paying attention to what is actually happening. (Dr. Paul Craig Roberts) This action masks the facts that central banks, large banks, and many retail investors outside of the USA are causing rising demand for the metals. This makes it that much easier to potentially manipulate the traders also.
I can’t express in strong enough terms how important it is to look into any issue that is important to you for yourself. Anyone reporting may have an agenda- either mainstream or private. Do your own due diligence.
If there was ever a time to be complacent or to just accept what everyone is saying to be true now is not that time. It appears that all of the information that we receive is being massaged in many ways to shape public opinion in one way or another.
Mike Savage, Financial Advisor
2642 Route 940 Pocono Summit, Pa 18346
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