Insiders Are Selling Stocks. Are You Going to Be the One Left Holding the Bag?
Last month, insider sellers outpaced buyers by a ratio of 5 to 1—the highest in two years—data compiled by the Washington Service showed. When insiders sell, many investors are choosing to go against their financial adviser’s “advice” they heard in 2008 to “just ride it out.” Most investors do not have six years to regain their losses like they had to when the last crash happened. Are you going to be the investor to ride this next correction to the bottom?
Mar 22, 2019 | Lu Want |
Hedge Fund: Sell Stocks, Buy Gold Is the “Trade of the Century”
Crescat Capital has a history of outperforming the S&P 500 Index. Their Global Macro Fund returned 41% last year in a down market. Now, Crescat Capital is the latest hedge fund moving into gold and out of stocks. “U.S. economic data is deteriorating, and inversions remain across the Treasury yield curve. The last two times the credit markets had such a high distortion, asset bubbles began to fall apart shortly thereafter,” Crescat wrote, and they acted by moving 75% of its portfolio into gold. You have to ask yourself, “Can I afford not to follow the smart money?”
Mar 21, 2019 | Sarah Ponczek |
Your Pension Can Be Bought Out Against Your Wish
Pensions are slowly becoming a thing of the past as they are being eliminated because corporations are losing incentives to keep holding them. The federal government just made it easier for employers to get rid of pensions by allowing them to offload their pension obligations to the private sector. Companies may purchase an annuity plan for each retiree from an insurance company, or they can offer their employees a lump sum up front. Do you want to be in a position where, when you most need your pension’s income, you find yourself “out in the cold”?
Mar 21, 2019 | Lydia DePillis |
All Markets Work in Cycles
Ultimately, fundamentals drive the markets. Currently, the deterioration in the growth rate of corporate earnings, the soaring global debt, and our economic strength are not supportive of the levels of asset prices. Investors should realize that and understand it’s the central banks that keep the markets up and that they can only do this for a limited time. What happens when reality collides with widespread fantasy?
Mar 20, 2019 | Lance Roberts |
The Fed Cannot Fix Credit Exhaustion
Central banks cannot magically make noncreditworthy borrowers creditworthy or force those who have forsworn adding more debt to borrow more at high interest rates. As a result, they are powerless to stop the tide of credit from ebbing. The evidence is plain enough: student loan and auto loan defaults are already at monumental levels, and the recession hasn’t even started.
Mar 20, 2019 | Hugh Smith |
The Crystal Ball—Inflation, Stocks, and Gold
Anyone considering to diversify their portfolio with precious metals should look at the actions of the Fed, rising inflation, and historically high stock market prices as the background to the potential price movement of gold. In this article, analyst David Becker is asking: “Will inflation buoy gold prices while the Federal Reserve is ‘on hold’?”
Mar 17, 2019 | David Becker |