Blog : The Outlook for Everything

by Peter Leeds on July 7th, 2016


The Major Exchanges Fall Short:

Whether you are looking at the trading chart of the S&P 500, or the NASDAQ, or the NYSE, they all tell the same story. The major exchanges have run into significant trouble each time they approach their former highs. 

This is a very negative indicator, and until stocks can break into new higher territory, the downside is significantly greater than the potential upside.

As we always say, the wrong way to trade this situation is to hide from stocks, or panic, or run away. There are some tremendous opportunities setting up right now, and these are the types of investments we are uncovering for you (like ASM, XPL, RADA, PZG. and GV).

As we discuss in this video, there are some military technology businesses, disruptive technologies, and precious metals mining stocks which are going to do absolutely incredible. If you contrast that to the likelihood that most other investments might decrease in price, it means that the gains you will see become even more significant.


The Fear Index is in Play:  

We are keeping an eye on the Fear Index right now. It is approaching some new lows (although it spiked up in recent trading activity).

We believe that there will be an opportunity to profit from VXX coming up in the next few weeks (or months). That moment is not here yet, but if the volatility index sinks much lower, there is a low-risk / potentially high-profit play setting up.

We will update accordingly. You can see how Peter profits from the fear index in this video.

 

Precious Metals Continue to Soar:

Precious metals have been performing very strongly, especially when considering that the American dollar has done well recently. Typically metals and the dollar act in opposite fashion to one another, but this seems to no longer be the case.

In fact, the rise in platinum, gold, and silver would have been even more significant if it occurred over a time where the American dollar was decreasing in comparative value. The dollar increased in value, but even so, it still took more dollars to buy the metals. 

If the dollar had fallen, the price increases you have seen in precious metals would have been even more pronounced.  The fact that gold prices rose during a time when the American dollar got stronger, demonstrates that the demand and value of the metal is increasing even more significantly than it appears on first glance.

When you contrast the value of precious metals in other currencies which are not performing as strongly as the American dollar, those increases in recent weeks and months are even more pronounced. For example, if you're considering gold in terms of British Pounds, the metal has absolutely skyrocketed since the currency decreased so much after the Brexit chaos.

Eventually (within the coming months), we anticipate that the American dollar will lose some of its recent strength. Many currency investors migrated to the American dollar during the uncertainty surrounding the Brexit vote, but we believe the recent strength is not sustainable.  When the American dollar does soften in comparison to most other currencies, it will result in the comparative value of precious metals spiking even higher than they already have.

We anticipated an increase in value of all precious metals, including silver, platinum, and palladium as well, which is why we positioned ourselves appropriately many months and even a few years ago.  We also profiled many related penny stocks to our subscribers, all of which have soared;  ASM, XPL, GV, PZG...

We are now starting to see our expectations play out, but we are still closer to the beginning than the end – meaning that all precious metals have a lot of room to run higher from current levels.

You will also notice that silver and platinum are rising (on a percentage basis) at a rate which is even faster than the increases in prices of gold. This is what we were talking about when we described the platinum to gold ratio, as well as the silver to gold ratio

While we think that gold is going to increase, we believe that other metals will increase at an even greater rate, at least until they return to their historically normal ratio in comparison with gold.  It should take 30 ounces of silver to buy one ounce of gold, not 80!  Also, platinum should trade at twice the price of gold.


Oil Has Further to Fall:

We anticipate that oil prices will continue to decline, as we have been saying even when levels reached $52.23 earlier this month.  We expect prices to slip into the range of $30-$40 per barrel.

Prices have moved significantly in our anticipated direction, dropping as much as $2.22 per barrel the other day alone.  Many of the issues which have been supporting oil prices, such as worker strikes, wildfires in the oil sands region of Canada, and price premiums caused by military conflicts, have all abated.

Meanwhile, the US rig count numbers have continued to climb, as we had mentioned they would. At these somewhat higher prices (at least in contrast to how low oil reached a few months back), there are more rigs going to come online, as well as more production from nations all across the world. 

Long story short, there will continue to be a glut of oil. This will be exacerbated by the specter of a slowdown in the Chinese economy, and the potential of a global recession... which we expect is on the way, as we explained here.

 

Baby Boomers Are Forced to Sell Stocks:

The first wave among baby boomers has just reached 70.5 years old.   At that age, they must take a certain percentage out of their retirement savings.

As of July 1st, based on their age, withdrawls from their tax-related savings accounts have been triggered.  Their holdings are almost exclusively stocks, and therefore their sales will mainly affect stocks.

Each year, the total cumulative affect on shares will increase.  Whether or not the selling will be enough to put pressure on the broader markets remains to be seen, but we will be watching closely (and will update accordingly).

 

Get on the Inside Track with a Subscription to Peter Leeds Stock Picks:

You could find out about stocks like GV, ASM, PZG, and more, just before the explode in price!  Subscribers also get to see all of Peter's personal trades and holdings.

All you have to do to benefit like over 40,000 people already have, is to subscribe.  The price pays for itself, is greatly undervalued, and works out to less than 55 cents per day by paying for the year up front.

 

 

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