6/4/2015 – A down day with the Dow Jones down 170 points (-0.94%) and the Nasdaq down 40 points (-0.79%)
Smart money is sharing some of their best investment ideas today. Let’s take a look.
In this video from a few days ago Mr. Icahn suggests…
- The stock market will eventually decline. A severe correction is likely.
- Junk bond spreads will explode. Just as they did in 2007-2009.
I would have to agree on both counts.
We have talked about China’s stock market going parabolic over the last few weeks. Here is another look how crazy things are. China’s IPO Frenzy Lures $273 Billion to One Stock Offering Will this speculation bubble burst? Of course, eventually they all do.
Unfortunately, I do not have a mathematical breakdown for the Shanghai’s composite. And with 1-10% daily swings it is not a market for the faint of heart. That is to say, unless you know exactly what you are doing, it would pay to stay away from China on both the short and the long side.
Mark Faber is investing in…
- Gold and
- 30-Year Treasury bonds.
As my analysis shows, the US Economy is about to fall into a major “official” recession. When it does, the FED will cut interest rates (if they have anything to cut) and introduce another round of QE. In such an environment gold should surge higher while yields collapse. Makes sense to me.
To summarize: Junk bonds yields should surge while treasury yields test a double bottom. Gold up, China collapses and the US equity markets take a beating. Invest accordingly.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. June 4th, 2015 InvestWithAlex.com
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