The Wall Street Examiner http://wallstreetexaminer.com Busting the myths Tue, 27 Sep 2016 13:11:38 +0000 en-US hourly 1 Dangerous Bubbles In Plain Sight http://wallstreetexaminer.com/2016/09/dangerous-bubbles-plain-sight/ http://wallstreetexaminer.com/2016/09/dangerous-bubbles-plain-sight/#respond Mon, 26 Sep 2016 20:55:30 +0000 http://davidstockmanscontracorner.com/?p=121312 Jesse Felder published an incisive bubble finance chart over the weekend. It is yet another reminder that Janet Yellen and her merry band of money printers are oblivious to the dangerous speculation and valuation excesses that their policies have implanted throughout the financial system. Relative to disposable income, the value of household financial assets now far exceeds the last two…

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This is a syndicated repost courtesy of David Stockman's Contra Corner » Stockman’s Corner. To view original, click here. Reposted with permission.

Jesse Felder published an incisive bubble finance chart over the weekend. It is yet another reminder that Janet Yellen and her merry band of money printers are oblivious to the dangerous speculation and valuation excesses that their policies have implanted throughout the financial system.

Relative to disposable income, the value of household financial assets now far exceeds the last two bubble peaks. And that has happened in an economic environment which suggests just the opposite. To wit, valuation multiples and cap rates should be falling owing the fact that the productivity and growth capacity of the US economy has been heading south ever since the turn of the century.

What is even more striking about this chart is what’s hidden behind the denominator. Since the eve of the financial crisis in 2007, a rapidly increasing share of DPI (disposable personal income) has been accounted for by the explosive growth of transfer payments.

Needless to say, transfer payments do not represent newly produced income that can be capitalized into the value of aggregate societal wealth. By definition, transfer payments are extracted via taxation from the incomes of current producers—–or via taxation of future incomes if they are funded with increased government debt.

Either way, the true extent of the bubble excess in Felder’s chart is even more extreme than pictured above. Between 2007 and 2016, in fact, the value of household financial assets soared from $53 trillion to $72 trillion at a time when real personal income excluding transfer payments rose by only1.2% annually.

And that’s crediting the BLS’ deeply understated inflation indices. In the real world of Flyover America, inflation-adjusted earned income hardly grew at all.

social-benefits-as-pct-dpi-092516

So here’s a newsflash for the clueless school marm who presides over the Wall Street casino. There is no such thing as a timeless “historical norm”when its comes to the valuation of financial assets. The appropriate capitalization rate for a current stream of income or cash flows depends upon the expected growth path into the distant future.

“I would not say that asset valuations are out of line with historical norms.” — Federal Reserve Chairwoman Janet Yellen 9/21/2016

Yet by the Fed’s own reckoning, the expected growth rate of the US economy has been marked down time and again in its economic forecasts. The long-run median real GDP growth rate is now pegged at just 1.9%.

So you might think someone on the fed would connect the dots. For the last six years running, they have drastically over-estimated the growth of real GDP even as the stock indices have soared based largely on multiple expansion.

Thus, after estimating 3.7% growth in 2011 and nearly 4.0% growth in 2012, actual expansion came in at 1.7% and 1.8%, respectively. Yet that wasn’t some kind of temporary aberration. During 2013 and 2014, the shortfall between initial estimates and actual was also nearly 50%; and then, even as the Fed lowered its estimates for 2015 and 2016, the actual rate of growth slowed still more.

In the case of anyone paying attention, of course, the tepid and weakening recovery conveyed in the table below helps explain why S&P 500 profits peaked six quarters ago in the September 2014 LTM period at $106 per share. Since they came in 19% lower at $87 per share in the June 2016 LTM, the actual market multiple at 24.7X is anything but normal, and that’s hardly a temporary condition, either.

As was indicated in a nearby post, the Wall Street hockey stick is bending toward the flat-line yet again. The most recent earnings outlook for Q3 has turned negative on a Y/Y basis—just in time for the next earnings season, and also precisely as needed for another round of Wall Street’s phony earnings “beat” game.

In short, in the context of declining earnings, PE multiples are not even in line with historic norms. Contrary to Yellen’s press conference blather, they are at the very top of the charts.

Worse still, the Fed continues to project that interest rates will “normalize” back to 3% on the federal funds rate and 4.2% on the 10-year treasury note. And in point of fact, sooner or later that must happen or the entire monetary system will be destroyed.

So with a future outlook characterized by slowing growth, weakened earnings and rising interest rates, how in the world can it be said that current valuations are nothing to worry about?

fomc-economic-forecasts-092116

At the same time, even the Fed’s new dissenter, the formerly dovish, Eric Rosengren, remains lost in the Fed’s Keynesian puzzle palace. Rosengren voted to raise interest rates because he apparently thinks the US is nearing full employment, and that it may overshoot by 2019, thereby creating inflationary risks:

By 2019, I expect the unemployment rate to have declined below 4.5 percent. While I have a long track record of advocating for policy that supports robust labor market conditions, that is below the rate that I believe is sustainable in the long run.

Well, that’s some kind of “full-employment”. There are 5 million more prime working age persons in the US today than there were in January 2000, but the number with “jobs”, including part-time gigs a few hours per weak and self-employed e-Bay traders, is nearly 1.0 million lower!

As for inflation, here is another newsflash. It’s already here.

So here’s the danger. The denizens of the Eccles Building see no bubbles in a financial system that is rampant with asset inflation. It sees full-employment when the US economy has more labor slack than any time in modern history. And it keeps the Wall Street gamblers in free carry trade funding because it wants even more inflation than what is already ravaging the real incomes of Flyover America.

No wonder the Trump voters want to throw the bums out. It is none too soon.

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Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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This Market Is Counting on Two Things That It Absolutely Shouldn’t http://wallstreetexaminer.com/2016/09/market-counting-two-things-absolutely-shouldnt/ http://wallstreetexaminer.com/2016/09/market-counting-two-things-absolutely-shouldnt/#respond Mon, 26 Sep 2016 20:18:24 +0000 http://moneymorning.com/?p=247141 The Fed's every move is just causing more and more harm to the economy and market. There's a lack of political and moral courage to raise interest rates.

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This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

Anybody who thought the Fed would raise interest rates in September (for only the second time in 10 years) less than two months before a tight presidential election between two unelectables probably thinks the Clinton Foundation is a charity or that Donald Trump pays taxes.

The Fed’s intellectual deficit is only exceeded by its lack of political and moral courage. Even JPMorgan Chase’s Chief Economist David Kelly, an establishment figure, told CNBC that the Fed is “doing long-term harm to the economy by not hiking interest rates… the economy has hit every target they have set. And we’ve got an inappropriate level of interest rates which is distorting asset markets, blowing bubbles, and will eventually end up in inflation. They’re imposing long-term harm for no short-term good here.”

Naturally, the Fed doesn’t see it that way. Janet Yellen, in one of the lamest excuses for inaction in Fed history, said, “We judged that the case for an increase had strengthened but decided for the time being to wait for continued progress toward our objectives.”

If that isn’t pathetic, I don’t know what is. But it wasn’t as ridiculous as what came next…

The Markets Love This Fed’s Poison

I was almost too depressed to be outraged by the market’s reaction to this inanity or the nonsense written about it by the mainstream financial press.

I nearly choked when I saw the CNBC headline lauding the market for celebrating the Fed’s failure to act, though I stopped myself after realizing that expecting anything intelligent from the laughingstock of financial media is just inflicting torture on myself.

While the Fed and its apologists engaged in some empty talk about a December rate hike, to quote Hillary Clinton at the Benghazi hearings – “what difference does it make?”

The fact that the Fed is hemming and hawing about raising rates by a miniscule 25 basis points for only the second time in 10 years is proof positive that it not only has no clue what it is doing, but that everything it has done over the previous decades has been destructive to economic growth.

People used to laugh at Ron Paul for demanding that we audit the Fed and then shut it down.  Hell, I used to laugh at him.

Now I think he had a point.

They’re Using 100-Year-Old Economic Theory on a 21st Century Economy

Leaving aside the fact that the Fed’s stated inflation and employment objectives have been met, as Mr. Kelly pointed out, the real problem is that the Fed doesn’t understand these objectives.

Trapped inside the intellectual vacuum of traditional economics, our central bankers still believe inflation is too low while clinging to outdated employment models. It is joined in these errors by the mainstream financial press.

Without exception, every article in The Wall Street Journal discussing the topic refers to inflation being too low, completely ignoring the runaway inflation in financial asset prices and the steady inflation in the prices of many goods and services (except energy prices).

There is literally zero chance that the global economy will improve until the veil of ignorance promulgated by consensus thinking is overthrown.

The policies resulting from this willful ignorance (willful because it ignores an immense body of of contrary evidence, ignorance because the evidence shows the thinking to be wrong) are burying the world under too much debt while destroying the value of money.

It may appear that investors are escaping the harsh judgment of markets, but it only appears that way.

Naturally, markets enjoyed the fact that the Fed will remain feckless for longer.

The Markets’ Gains Might Not Last Much Longer, Though

The Dow Jones Industrial Average rose 138 points, or 0.8%, last week to 18,261.45, while the S&P 500 added 25 points, or 1.2%, to 2,164.90. The Nasdaq Composite Index also rose by 1.2% to 5,305.75, despite news that one of its larger components, Facebook Inc. (Nasdaq: FB), had been misreporting ad revenue for the last two years.

The market does not appear to be taking the prospect of a Trump victory seriously, but it should.  The momentum in the race is shifting in the Republican’s favor. With increasing evidence that the system is rigged, the electorate seems more willing than ever to take a chance on a man who is willing to speak truth to power and challenge the establishment despite his many obvious flaws.

Many pundits argue that the market has been priced for a Hillary Clinton victory. That could lead to significant market volatility if the assumptions of the mainstream media of a Clinton victory are challenged further.  With the S&P 500 trading at its highest level other than 1929 and 2000 (based on the Shiller Cyclically-Adjusted P/E) and other measures, it is vulnerable to any serious disruption of the narrative that has driven it to near record highs.

That narrative has two main parts – an easy Fed and a victory by a status quo candidate. The easy Fed is in the bag, but the status quo could be rocked.

It would be prudent to be cautious with your investments until greater certainty emerges.

This May Be the First (and Last) Time You See Michael Lewitt on Camera

Michael Lewitt is one of the most talented investors in America. He’s also one of the most private individuals we’ve ever known and rarely makes public appearances. But, for the first time, Michael is going “off the record to reveal a new way to find stocks that have a 94.5% chance of working in your favor… and could net you an easy $313,000 in a matter of months. You may disagree with his approach, but you can’t deny its millionaire-making power. 

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The post This Market Is Counting on Two Things That It Absolutely Shouldn’t appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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New Home Sales Biggest Monthly Decline In History- A Warning Shot http://wallstreetexaminer.com/2016/09/new-home-sales-biggest-monthly-decline-history-warning-shot/ http://wallstreetexaminer.com/2016/09/new-home-sales-biggest-monthly-decline-history-warning-shot/#respond Mon, 26 Sep 2016 19:49:53 +0000 http://wallstreetexaminer.com/?p=307260 The Commerce Department reported today that sales of newly built homes posted a seasonally adjusted month to month decline of 7.6% to an annualized rate of 609,000. This was near the consensus guess of economists of 602,000 according to the Wall Street Journal. In terms of the game of pin the tail on the donkey-economists it was a non-event. The…

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The Commerce Department reported today that sales of newly built homes posted a seasonally adjusted month to month decline of 7.6% to an annualized rate of 609,000. This was near the consensus guess of economists of 602,000 according to the Wall Street Journal. In terms of the game of pin the tail on the donkey-economists it was a non-event.

The Commerce Department also reported that the August headline number was up 20.6% year to year. That sounds good until you look at the actual data.

The actual, unmanipulated figures showed a total of 50,000 new homes sold in August, compared with 57,000 in July, a drop of -12.3%. That was much worse than the typical month to month decline in August. Last year the August drop was -4.7% month to month. The average August decline for the prior 10 years was -5.6%. In fact, this was the largest August month to month decline in history, going back to 1963 when the Federal Government began collecting this data.

This August had the advantage of 2 more business days than August 2015 possibly giving the August numbers a boost. New home sales are counted at the time they go under contract. While sales contracts can be signed on weekends in this business, it’s the exception. The numbers were the worst in history, even with that boost. In cases like this, economists usually blame the weather. I guess it was too hot to buy houses. Global warming, yeah, that’s the ticket!

Read the rest of this post and view all the charts at David Stockman’s Contra Corner. 

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Banks to Need Billions More Capital in Tests Under Fed Proposal (Banks Fall On News) http://wallstreetexaminer.com/2016/09/banks-need-billions-capital-tests-fed-proposal-banks-fall-news/ http://wallstreetexaminer.com/2016/09/banks-need-billions-capital-tests-fed-proposal-banks-fall-news/#respond Mon, 26 Sep 2016 18:33:18 +0000 http://anthonybsanders.wordpress.com/?p=2140 According to Bloomberg News, US banks will have to cough up billions of dollars in additional capital to pass new Fed stress tests.

The post Banks to Need Billions More Capital in Tests Under Fed Proposal (Banks Fall On News) was originally published at The Wall Street Examiner. Follow the money!

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This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

According to Bloomberg News, US banks will have to cough up billions of dollars in additional capital to pass new Fed stress tests.

Bloomberg — Wall Street would have to come up with billions of dollars in additional capital in a proposed revamp of the Federal Reserve’s stress tests that would also scrap some parts of the annual exercise that lenders have criticized.

As the Fed has previously signaled, it is considering changes that would raise the minimum capital targets that each bank has to have to receive a passing grade, Fed Governor Daniel Tarullo said Monday. But the Fed is also mulling concessions that Wall Street has sought, such as eliminating its assumption that lenders would continue to pay out the same level of dividends and buy back shares during periods of severe financial duress, Tarullo said.

The purpose of the overhaul is to try to merge stress testing with related capital rules, including incorporating the largest banks’ so-called capital surcharges that each bank must meet based on how big and complex it is, Tarullo said in prepared remarks for a speech at the Yale School of Management in New Haven, Connecticut.

“This would generally result in a significant increase in capital requirements,” he said.

Tarullo has been indicating for months that the Fed plans to ramp up capital demands in stress tests and Wall Street has been anxiously awaiting the agency’s proposal. The exams already represent the highest capital hurdle that U.S. banks must clear to show they can survive a hypothetical crisis devised by regulators, such as an extended economic downturn. What bankers may not have been counting on was that the Fed might add something besides surcharges to the mix.

Tarullo said the central bank will swap out its old 2.5 percent capital conservation buffer — one of the pieces tallied into each firm’s capital target — for a new “stress capital buffer” derived from each firm’s own stress-test results. That new number is the product of a simple subtraction: How much capital the bank starts with before the stress scenario the Fed hatches, minus how much the firm has at its lowest point in the nine quarters of the hypothetical stress period. If the institution started with 13 percent and dropped to 8, its buffer is 5 percent. And the buffer won’t be allowed to be less than the old 2.5 percent.

Tarullo said the proposed changes would not apply to the next round of stress tests.

And on that news, the big four, Bank of America, Wells Fargo, Citi and JPM Chase all fell.

banksdsds

The biggest loser today? SunTrust,  Huntington (Columbus, Ohio), M&T and KeyCorp (Cleveland, Ohio). In sixth place is Fifth Third Bank (Cincinnati, Ohio). Ohio is really taking it on the chin in terms of bank capital!

otherbanks

Here is a video of Wells Fargo delivering millions in new capital in order to pass the Federal Reserve stress tests.

wells-fargo-delivery

Of course, Deutsche Bank sinking like the WWII German battleship Tirpitz isn’t helping. I couldn’t find any songs named “Sink the Tirpitz!,” but “Sink the Bismarck!” by the late Johnny Horton will do.

tirpitz

 

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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Gold Stocks to Buy Now http://wallstreetexaminer.com/2016/09/gold-stocks-buy-now/ http://wallstreetexaminer.com/2016/09/gold-stocks-buy-now/#respond Mon, 26 Sep 2016 17:55:03 +0000 http://moneymorning.com/?p=246851 The best gold stocks to buy now will have room to climb, even though they've done so well this year.

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This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

Gold stocks have been one of the stellar market outperformers in 2016 – and it’s not too late to shop for some top gold stocks to buy now.

So far, the price of gold per ounce has climbed over 25% this year. The stocks of gold mining companies are up much more than the stock market averages, with double- and even triple-digit gains on the year.

Investors now asking “which gold stock should I buy?” have a few choices, as there’s not just one gold stock to buy to profit from this trend of rising prices.

Below, we look at three gold stocks to buy now to profit from the rising yellow metal price…

Factors Supporting the Climb in Gold Stocks and Prices

First, why has gold soared so much in 2016?

The first reason is demand. Gold coin sales, for example, hit record levels this year. Big banks, both here and abroad, are buying up gold. Deutsche Bank AG USA, for instance, invested approximately $2 billion in gold miner shares.

Central banks also hold large quantities of gold. In 2013, the Swiss National Bank had $500 million in gold.

The second reason for a rise in gold stocks and prices is the sluggish global economy, in which gold is an alternative investment to bonds. Both in the United States and worldwide, central banks are holding their interest rates at record lows or (in many European countries) have pushed them into negative territory.

Trending Now: How to Profit from These “Living Dead” Firms as the Fed Keeps Them on Life Support

That raises two issues. First, low and negative rates are intended to stimulate the economy. How low can they go if economies remain not stimulated enough to show robust GDP increases? Second, investors looking at the bond markets are not stimulated to buy. U.S. investors would receive record low returns. Global investors are essentially paying some European central banks to hold their money, rather than being paid themselves.

The impact of Brexit – the late June vote by the UK to exit the European Union it’s been part of for decades – is also negatively impacting the global economy. It will take at least two years to negotiate the terms, and a shrinking world economy is likely to be one outcome in that time.

Gold StocksThe third reason gold stocks and prices are up is the yellow metal’s role as a safe-haven investment. Investors go to gold when economies are weak, markets drop, and the political environment is uncertain. Given the slack in corporate profits, markets are not safe from extreme decline going forward. The U.S. and European political scenes are both uncertain. Gold is the beneficiary.

So the question is not if gold stocks should be considered, but rather, it is more about which gold stocks to buy.

Peter Krauth, Money Morning‘s Resource Investing Specialist, forecasts a gold price per ounce of $1,500 by year-end. That’s a more than 11% increase from current levels.

Not only that, but Krauth’s estimate for 2020 gold prices per ounce is a whopping $5,000. That’s more than 272% higher than prices today.

So, when it comes to answering which gold stock to buy, here are three suggestions.

Gold Stocks to Buy: The Top Pick Gold Miner

One of our favorite gold stocks to buy now is Goldcorp Inc. (NYSE: GG).

GG stock has risen 43% so far in 2016. And it’s not done yet.

Money Morning Executive Editor Bill Patalon forecasts that GG could provide investors with a potential 35% gain from current levels. Of this outperforming gold mining sector, GG is positioned the best for the future.

GG has focused heavily over the last several years on cutting costs and spending. As a result, it leads the list of efficient gold mining companies.

Its reduced costs have also equaled impressive cash flows. Goldcorp management has let analysts know that it expects operating costs this fiscal year to be even lower. They forecast production levels at gold of 2.8 million to 3.1 million ounces. Their “all-in sustaining cost” is $850 to $935 per ounce.

Ryan McIntyre, a senior investment analyst at Tocqueville Asset Management, sets GG’s target price at $23 per share, approximately 35% above the current price, $16.98. A survey of a group of analysts reveals an average price expectation of $26.50.

Gold Stocks to Buy: A More Than 100% Return in 2016

Another of the best gold stocks to buy now is Barrick Gold Corp. (NYSE: ABX), a stock that has skyrocketed 137% so far in 2016.

ABX is a great option when asking “which gold stocks should I buy” for several reasons. First, Barrick has greatly reduced its debt levels. And in its last quarterly reported, Barrick booked $138 million in earnings on revenue of more than $2 billion versus the year-ago figure, a net loss of $9 million.

Citigroup rates ABX a “Buy” and has placed a $29 per share price target on its recommendation. From current prices of $18.39, that gives ABX 57% more to go.

Gold Stocks to Buy: A Lower Risk Pick

If you’re in the market for a great gold stock and either already own some gold miners or want another choice, Money Morning recommends an exchange-traded fund (ETF), the Sprott Gold Miners ETF (NYSE Arca: SGDM).

Buying ETFs gives investors an excellent way to benefit from the expected rise in gold prices and a way to buy gold itself without the safety considerations that accompany purchasing physical gold in coins, bars, or bullion.

ETFs are purchased and sold on the stock exchange, just as stocks of regular companies are, so they are highly liquid.

Sprott Gold Miners ETF is a basket from the Sprott Zacks Gold Miners Index. SGDM is up a whopping 95% on the year.

 

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About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

 

The post Gold Stocks to Buy Now appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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Reports Of The TED Spread’s Death Are Greatly Exaggerated http://wallstreetexaminer.com/2016/09/reports-ted-spreads-death-greatly-exaggerated/ http://wallstreetexaminer.com/2016/09/reports-ted-spreads-death-greatly-exaggerated/#respond Mon, 26 Sep 2016 17:39:39 +0000 https://www.thefelderreport.com/?p=10946 On Friday, the Wall Street Journal officially ran an obituary for the TED spread proclaiming: “The Ted Spread Is Dead, Baby. The Ted Spread Is Dead.” The article explains: This spread...

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This is a syndicated repost courtesy of The Felder Report. To view original, click here. Reposted with permission.

On Friday, the Wall Street Journal officially ran an obituary for the TED spread proclaiming: “The Ted Spread Is Dead, Baby. The Ted Spread Is Dead.” The article explains:

This spread charts the difference between the London interbank offered rate and the yield on three-month U.S. Treasury bills. Libor is a dollar-denominated global gauge of private-sector credit strength, particularly that of banks, and three-month bills measure an ultrasafe bet—the U.S. government’s creditworthiness. Ted stands for Treasury-Eurodollar rate, the Eurodollar being the greenback denominated lending reflected in the Libor rate.

For the past year and a half the spread has been creeping higher, rising from 0.2 of a percentage point at the turn of 2015, to 0.653 of a percentage point on Wednesday. That is the highest it has been since May 2009, in the aftermath of the global financial crisis, surpassing other moments of extreme stress, like the euro sovereign-debt crisis around 2011.

But there is a problem with that. Looming U.S. regulation of money-market funds has driven Libor higher, meaning that it isn’t quite the indicator that it once was.

Now this is clearly the consensus view of the TED spread today. The markets have largely ignored its recent widening. This is most notable in the divergence between the TED spread and the VIX which are normally highly correlated.

sc

The Wall Street Journal then is merely representing the “first level thinking” of the masses, as the media almost always does. However, a successful investor must look beyond this simplified view and practice, in the words of Howard Marks, “second level thinking.” Marks’ concept of second-level thinking simply entails asking yourself, ‘what is the consensus and is it right?’

We already know the consensus is to dismiss the recent widening of the TED spread to new money market regulations. The market tells us as much. But is this explanation valid? Is it enough?

One measure I’ve been watching in this regard is the difference between the yield on AA-rated financial commercial paper and that of AA-rated nonfinancial commercial paper. My reasoning is this: If all of the widening in the TED spread were due to money moving out of commercial paper and into government paper it should affect these equally. And this is just not the case.

The spread between these two yields, like the TED spread, has now moved to its widest level since the financial crisis. In other words, spreads in the commercial paper market are confirming the message of rising financial stress in the widening TED spread rather than contradicting it, as most would have us believe.

fredgraph-2

Furthermore, anyone who has taken a glance at Deutsche Bank’s stock chart recently or that of any of the European bank stocks, for that matter, would not be surprised at all by these sorts of indicators showing rising financial stress. The only thing that is truly surprising is the fact that the consensus is so willing to disregard all of this evidence at the same time and buy the idea that money market reforms are the sum total of the issue.

Now these indicators may not lead to another financial debacle. That’s not my point. My point is that to write them off as worthless is an oversimplified view and possibly a very good sign of far too much complacency in the markets right now. Finally, if the VIX is to catch up to the TED spread that complacency could become problematic for the most crowded trade on Wall Street.

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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The Unintended Consequences of These New SEC Rules Could Kill the Rally – or Worse http://wallstreetexaminer.com/2016/09/unintended-consequences-new-sec-rules-kill-rally-worse/ http://wallstreetexaminer.com/2016/09/unintended-consequences-new-sec-rules-kill-rally-worse/#respond Mon, 26 Sep 2016 16:48:36 +0000 http://moneymorning.com/?p=246461 When these new SEC rules kick in next month, they won't just affect institutional investors - they could end up killing the markets.

The post The Unintended Consequences of These New SEC Rules Could Kill the Rally – or Worse was originally published at The Wall Street Examiner. Follow the money!

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This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

Starting Oct. 14, 2016, institutional prime money market funds won’t be able to price themselves at a constant $1.00 a share.

New SEC rules will require these giant funds to value shares based on actual market prices for underlying assets in their portfolios.

That means their per-share prices will fluctuate on a daily basis.

While that’s not exactly good news, it gets worse.

The rules allow funds to charge up to a 2% redemption fee when investors want out.

But the killer is, funds can put up “gates” that prevent investors from selling shares.

Besides problems investors will have with the new rules, unintended consequences affecting companies and municipalities that rely on selling their commercial paper and other short-term debt instruments to these big funds could end up killing the market.

Here’s what you need to know and what to do…

Why They’re Changing the Rules

SEC rules

Money market funds used to price their shares at a constant $1.00. It used to be “a dollar in and a dollar out.”

If the underlying assets in a money market fund rose above $1.00, funds could pay the excess out as a dividend. If the underlying value of assets fell such that the pro-rata per share price was below $1.00, funds could use amortizing accounting methods to still maintain the fund’s constant $1.00 a share price.

More from Shah: Why I Wasn’t Surprised by Wells Fargo’s Scam

In 2008, the oldest and largest money market fund in the United States, the Reserve Primary Fund, “broke the buck” and priced its shares at $0.97 when Lehman Brothers collapsed and the price of Lehman’s commercial paper the Reserve Fund held imploded.

The Reserve Fund breaking the buck panicked investors who immediately withdrew hundreds of billions of dollars from money market funds before they could lower their prices, too.

That run on money market funds brought the financial system to a standstill.

Instantly, there were no buyers for the billions of dollars of commercial paper and other short-term debt instruments corporations and municipalities sold to money market funds on a daily basis to fund their payrolls and other short-term cash needs.

In July 2014, the U.S. Securities and Exchange Commission handed down new rules to make some money market funds more transparent in terms of pricing their underlying assets and to temporarily steady funds during times of extraordinary financial stress.

Making institutional funds float their share price makes it more transparent to impacted investors so that they, and not the fund sponsors or the Federal government, bear the risk of loss.

By allowing these funds to charge up to a 2% redemption fee, under certain circumstances, the SEC hopes to slow redemptions when investors would normally head for the exits.

By allowing funds to put up “gates” to shut down redemptions altogether, the SEC expects to halt debilitating money market runs when the financial system can least afford them.

The Letter of the Law

Here’s how the SEC explains the new pricing requirements, the new redemption fees, or “liquidity fees,” and gates:

Showing Fluctuations in Price – Institutional prime money market funds would be required to price their shares using a more precise method so that investors are more likely to see fluctuations in value. Currently, money market funds “penny round” their share prices to the nearest one percent (to the nearest penny in the case of a fund with a $1.00 share price). Under the floating NAV amendments, institutional prime money market funds instead would be required to “basis point round” their share price

Liquidity Fees – Under the rules, if a money market fund’s level of “weekly liquid assets” falls below 30 percent of its total assets (the regulatory minimum), the money market fund’s board would be allowed to impose a liquidity fee of up to two percent on all redemptions. Such a fee could be imposed only if the money market fund’s board of directors determines that such a fee is in the best interests of the fund. If a money market fund’s level of weekly liquid assets falls below 10 percent, the money market fund would be required to impose a liquidity fee of one percent on all redemptions. However, such a fee would not be imposed if the fund’s board of directors determines that such a fee is not in the best interests of the fund or that a lower or higher (up to two percent) liquidity fee is in the best interests of the fund. Weekly liquid assets generally include cash, U.S. Treasury securities, certain other government securities with remaining maturities of 60 days or less, and securities that convert into cash within one week.

Redemption Gates – Under the rules, if a money market fund’s level of weekly liquid assets falls below 30 percent, a money market fund’s board could in its discretion temporarily suspend redemptions (gate). To impose a gate, the board of directors would find that imposing a gate is in the money market fund’s best interests. A money market fund that imposes a gate would be required to lift that gate within 10 business days, although the board of directors could determine to lift the gate earlier. Money market funds would not be able to impose a gate for more than 10 business days in any 90-day period.

You can read the SEC’s full release here.

What the Unintended Consequences Mean for Your Money

Now, let me be clear: Not all money market funds are subject to the new rules.

Retail and government money market funds are exempt and can still price their shares at a constant $1.00 per share.

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Retail funds cater to natural persons, individual accounts (brokerage or mutual fund), retirement accounts, including workplace defined contribution plans, college savings plans, health savings plans, ordinary trusts, and accounts sold through intermediaries with the underlying beneficial ownership being a natural person.

Government money market funds only invest in government-issued debt instruments and are exempt.

But these rules could still have a big impact on your investments.

Besides affecting the industry already, where almost $500 billion has exited institutional prime funds this year, there are sure to be unintended consequences from the new rules.

Big institutional investors who invest in prime money market funds, a lot of them whose companies issue the commercial paper held by prime funds, aren’t going to take kindly to being subjected to redemption fees when they want their money out of funds as prices are falling.

And they for sure aren’t going to want to be in prime funds if they can’t get their money out at all, while prices are plummeting.

That means there will be hundreds of billions of dollars, possibly more than $1 trillion, not available to banks, corporations, and municipalities who borrow on an almost daily basis by selling their commercial paper and debt instruments to institutional prime money market investors.

Besides drastically choking short-term borrowers, who will have to find other ways to raise short-term funds, investors who would normally invest in money market funds are moving into government money market funds, who now have to find hundreds of billions of dollars of short-term Treasury bills to hold in their portfolios.

There’s already a shortage of T-Bills.

Between banks, hedge funds, and institutional investors hoarding T-Bills for liquidity purposes, there’s very little supply in the $1.7 trillion T-Bill market. The Treasury plans to add another $188 billion to the T-Bill supply in anticipation of the new money market rules and the move by big investors out of prime funds and into government funds.

That’s not nearly enough supply. Any rush into Treasuries, which are across the yield curve in short supply because the Fed‘s hoarding over $3 trillion of government notes and bonds, could result in severe liquidity problems if any kind of market sell-off triggers a further rush into safe governments and there aren’t enough of them.

The new rules will undoubtedly spawn unintended consequences that regulators and investors haven’t considered but are likely because of the massive disruption to corporate borrowers and big investors we’re about to witness.

Whenever the market encounters huge unknowns, there’s likely to be disruptions, dislocations, and possibly panic if something somewhere all of a sudden breaks or stops working.

You’ve been warned.

 

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About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

 

The post The Unintended Consequences of These New SEC Rules Could Kill the Rally – or Worse appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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Where Silver Prices Are Headed Now After Fed’s Latest Inaction http://wallstreetexaminer.com/2016/09/silver-prices-headed-now-feds-latest-inaction/ http://wallstreetexaminer.com/2016/09/silver-prices-headed-now-feds-latest-inaction/#respond Mon, 26 Sep 2016 16:47:58 +0000 http://moneymorning.com/?p=246631 Last week was an extremely volatile one for silver prices, after the Fed decided not to move on interest rates once again.

The post Where Silver Prices Are Headed Now After Fed’s Latest Inaction was originally published at The Wall Street Examiner. Follow the money!

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This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

Thanks to the Fed, silver prices rallied last week and breached the $20 mark once again.

When the FOMC decided not raise rates, it accomplished a few things temporarily. Stocks rallied. Bonds rallied. Oil rallied. Silver prices rallied. And the dollar tanked, right on cue.

The S&P 500, Dow Jones Industrials, and the Nasdaq were all up dramatically on Wednesday (post-Fed) and Thursday. But on Friday, the hangover began to set in, with the major indices selling off.

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The price of silver followed nearly exactly the same pattern, benefitting from dollar weakness, but then falling when the dollar regained strength Friday. Silver prices today (Monday) are down 0.5% in morning trading to $19.68.

It was an exciting week, but precious metals and the markets may now be looking farther ahead to the next possible rate hike before the year is out.

Here’s a look back at how silver prices moved last week, plus where I see theprice of silver per ounce heading from here…

Why Silver Prices Were So Volatile Last Week

Silver prices started out strong on Monday. Silver opened at $19.10, likely anticipating the Fed would not raise rates. Silver prices traded mostly sideways during the day and closed $19.12.

Tuesday was another slow day. Silver prices began trading at $19.13 and exhibited little volatility, closing at $19.20.

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But the volatility came very early the next day. The U.S. Dollar Index (DXY) surged overnight and into the early morning, peaking near 96.40. But it quickly sold off and got pushed further down when official news came of the Fed’s delayed rate hike. The price of silver rose to $19.40 before the open, hit $19.47 by 8:00 a.m., then $19.61 by 10:00 a.m. When the official statement from the Fed was released, silver prices popped higher to $19.72. Silver kept climbing into the close, reaching $19.81.

For its part, the DXY dropped that whole day, bottoming on Thursday around 95.07. That’s a huge swing downward that lit a fire under silver prices. Silver rose in early morning trading and opened at $19.80. It then twice touched the psychological ceiling of $20, but it couldn’t maintain that level. Silver closed Thursday at $19.84.

On Friday, silver backed off a little further, thanks mainly to dollar strength. Silver opened at $19.87 before falling to $19.65 by late afternoon.

Here’s the DXY action of the past trading week.

silver prices

So where are silver prices headed next? Here’s what I see moving silver prices for the rest of the year…

Where Silver Prices Are Headed Now

Thanks mostly to the Fed, silver prices once again have strong momentum. We can see that when we look at how the metal closed above its 50-day moving average last week.

If silver doesn’t take out its last high near $20, then I think we’ll see it drop back below its 50-day moving average around $19.60. From there, we may retest the low of its recent range around $18.50.

The silver price action of the last couple of days has shown a gold/silver ratio that’s bottomed (at least temporarily) at 67. I think we could see it head back to around 69 before it reverses again.

Meanwhile, Commitment of Traders (COT) reports show smart-money hedgers hold a large short position near their recent 20-year record high. That’s an ongoing contrarian sign that silver remains somewhat overbought and needs more time to work off that condition.

My sense is that the market will begin looking forward at the data the Fed may be using to decide on its next rate hike, possibly in December.

Nonetheless, conditions remain sufficiently bullish to sustain higher silver prices, pulling them up to the $22 level over the next three months.

 

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About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

 

The post Where Silver Prices Are Headed Now After Fed’s Latest Inaction appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

The post Where Silver Prices Are Headed Now After Fed’s Latest Inaction was originally published at The Wall Street Examiner. Follow the money!

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Limbo Rock! Deutsche Bank Sinks To 10.51 Euros, A Record Low (Lost 54% Of Market Value So Far This Year) http://wallstreetexaminer.com/2016/09/limbo-rock-deutsche-bank-sinks-10-51-euros-record-low-lost-54-market-value-far-year/ http://wallstreetexaminer.com/2016/09/limbo-rock-deutsche-bank-sinks-10-51-euros-record-low-lost-54-market-value-far-year/#respond Mon, 26 Sep 2016 16:01:42 +0000 http://anthonybsanders.wordpress.com/?p=2134 Deutsche Bank, the beleaguered largest bank in Europe, just fell under 11 to 10.51.  In other words, Deutsche Bank has lost 54% of its market value this year.

The post Limbo Rock! Deutsche Bank Sinks To 10.51 Euros, A Record Low (Lost 54% Of Market Value So Far This Year) was originally published at The Wall Street Examiner. Follow the money!

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This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Deutsche Bank, the beleaguered largest bank in Europe, just fell under 11 to 10.51.  In other words, Deutsche Bank has lost 54% of its market value this year.

dblow

Despite all the attempts by the European Central Bank (ECB) to salvage the European banks.

ecbdb

Deutsche Bank’s contingent convertible bond (CoCo) issued at 6% is now yielding over 2x the initial coupon rate, 13%+.

dbyworst

How low will Deutsche Bank go?

limborock

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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Reasons for a 2016 Stock Market Crash http://wallstreetexaminer.com/2016/09/reasons-2016-stock-market-crash/ http://wallstreetexaminer.com/2016/09/reasons-2016-stock-market-crash/#respond Mon, 26 Sep 2016 16:00:13 +0000 http://moneymorning.com/?p=246591 A 2016 stock market crash will hurt unprepared investors.

The post Reasons for a 2016 Stock Market Crash was originally published at The Wall Street Examiner. Follow the money!

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This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

Should investors fear a 2016 stock market crash?

2016 stock market crash

Honestly, investors have reason to be ready for market volatility at any time. But there are a few factors increasing the chances of a stock market crash before 2016 ends.

For starters, a 2016 stock market crash or pullback could be triggered by interest rates and poor economic data.

So where should you put your money to successfully thrive in a 2016 stock market crash? Money Morning provides some answers below.

Stock Market Crash 2016 Factors: Interest Rates

Money Morning believes that low and negative interest rates worldwide could lead to stock market declines.

The September meeting of the Federal Open Market Committee (FOMC) left interest rates unchanged at a historically low 0.25%, where they have stood since December 2015.

Nearly 33% of global government-issued bonds now yield not only low, but also negative, yields. The bonds of Switzerland, Denmark, Norway, and Sweden all return below 0%. The European Central Bank has historically low yields. So does the Bank of England.

One issue with these low to negative yields is that they are being done because economies are sluggish. So far, they are remaining sluggish. The stimulus caused by falling rates is already in the economy, and has been for some time.

Investors faced with low or nonexistent bond yields often turn to the stock market as a result. The net effect is to drive up the broader markets to heights that are unsustainable through fundamentals.

Trending: 3 Ways to Profit from a Market Correction

A change in interest rate direction – a sudden hike – can cause a big pullback in stock markets. Businesses and investors suddenly realize that debt service and borrowing for expansion is going to be harder. The period of stimulus is over. They often respond to the shock of a sudden increase with market sell-offs.

Poor Economic Data a Sign of a 2016 Stock Market Crash

The 2016 stock market crash could also be triggered by ongoing economic weakness.

For the last two years, the gross domestic product (GDP) has dropped significantly – 76% from July 2014 through July 2016.

And wage growth? Very low. It stands at only 1.4%. The numbers tell starkly how much the average wage is not rising. Last July, the U.S. Bureau of Labor Statistics (BLS) recorded that weekly average earnings were $364.29. Over the year, they rose only about $5.00, to $369.56.

If GDP growth and purchasing power are not driving the economy, that means less support for a higher stock market.

A sluggish global economy might also be one of the factors driving a 2016 stock market crash. Worldwide, GDP growth registers at 3.1%. It looks better than the U.S. GDP, but the percentage is dead even with last year’s – so on average no growth is recorded. It’s the lowest rate since the 2008-2009 financial crisis.

Corporate Earnings to Hurt the Stock Market

Despite recent highs in the broad indexes, corporate earnings, in fact, have been falling for an extended period of time.

During the second quarter, S&P 500 corporate earnings dropped more than 3%, according to FactSet. It was the fifth consecutive quarter of declining earnings – the first time earnings have dropped in such a long streak since the financial crisis.

Filings for commercial bankruptcies climbed over 33% in June. Poor earnings and rising bankruptcies are a recipe for declining stocks in 2016.

How to Profit from a 2016 Stock Market Crash

There are always good investment opportunities in any market conditions. Here are Money Morning‘s recommendations.

One of the best safe-haven investments for a stock market crash is gold. Gold is a hedge against market volatility and uncertainty. In the event of a 2016 stock market crash, gold will rise.

Money Morning Global Credit Strategist Michael E. Lewitt advises investors to place 10% to 20% of their total portfolio in gold. While there are a handful of ways to own gold – stocks, ETFs, bars, and coins – buying physical gold is best to store some of your money during a crash.

Lewitt details for investors his gold-buying tips here. He lists three dealers he likes to buy from and why. When looking for a dealer, you want someone who doesn’t mark up the price much over the spot price of gold, or else you’re paying much more than you have to. You also want great service so your gold doesn’t take long to ship to you.

There are other ways to hold gold in your portfolio that will still do well during astock market correction. They are all in Lewitt’s gold-buying guide.

Lewitt also advises investors to hike their cash positions going forward. Why? First, cash is a safe investment in case of a stock market crash in 2016. Second, cash positions you to buy stocks that are hit during a significant pullback, at which point they may have excellent price/earnings ratios.

Finally, more advanced investors can use their trading skills to short the market.

Money Morning Capital Wave Strategist Shah Gilani advises that investors buy ProShares Short S&P 500 ETF (NYSE Arca: SH) to make money during a stock market crash. SH is an inverse ETF that will rise in the event of a drop in the S&P 500 (and only the S&P 500).

Investors who purchased SH immediately prior to the 2008 stock market crash realized a more than 40% rise in it from September 2008 to January 2009. During the market pullback in the early part of this year, SH rose 15%. In early September, the S&P 500 fell 2.28% in a week. During the same period, SH climbed 2.35%.

Do not hold this for the long term. It is designed to be held only over the short term. In addition, Gilani advises that investors hold just 2% of their portfolio or less in it.

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About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

 

The post Reasons for a 2016 Stock Market Crash appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclaimer: The Wall Street Examiner reposts third party content with the permission of the publisher. I curate these posts on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. No promotional consideration has been offered or accepted. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler and no endorsement of the content so provided is either expressed or implied by our posting the content. Some of the content includes the original publisher's promotional messages. The Wall Street Examiner is not familiar with the services offered and makes no endorsement or recommendation regarding them. Do your own due diligence when considering the offerings of third party providers.

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