Greetings from Toronto! As you read this, I’m canvassing the floor here at the Metro Toronto Convention Centre … getting ready for my first MoneyShow panel discussion on gold … and preparing to help ring the closing bell for today’s Toronto Stock Exchange session.
I love these kinds of events because I get to interact — in person — with knowledgeable investors and subscribers like you. And this conference couldn’t come at a better time, given the increased stock market turmoil we’re seeing … and the huge gold market gains we’ve witnessed so far in 2016.
If you’re in town, be sure to stop by and say “Hello.” If you couldn’t make the trip, though, let me give you the general outline of what I’m telling investors here …
First, “Everything Bubble” risks are getting larger with each passing day. The auto industry is on the ropes, with Ford Motor (F) confirming this week that market conditions are deteriorating. Commercial real estate shares have gotten hammered in the past several days amid rising fears of a price bust there. High-yield and emerging market bonds are taking on water again due to worries about the credit cycle turn, and the end of artificial central bank bubble-blowing.
Second, the U.S. economy continues to show signs of decelerating. Key readings on the manufacturing and service sector have taken a turn for the worse, while the Citi Economic Surprise Index has retraced the entire “summer spurt” we saw in July and August.
|Overvalued assets could get hammered.|
Third, Wall Street’s top money managers and noted billionaires continue to warn loudly and frequently that radical monetary experimentation may be at the end of its rope. That means wildly overvalued asset prices could be facing a potentially dangerous depreciation.
Fourth, you can still find a select handful of fundamentally strong, highly rated companies in less economically sensitive industries. I’ve recommended a small number of them in my various investment services.
But I have a much longer list of stocks and sectors that will get hit hard if the everything-bust-scenario continues to play out. The resumption of volatility we’ve seen over the past few days only adds to my concerns that we’re seeing a regime change in the markets.
So now is not the time to go hog wild throwing money at stocks. Instead, it’s a great time to hunt for short-sale and put option opportunities in vulnerable names. That’s precisely what I’m doing in my shorter-term trading service, All Weather Trader, which you can get on board with by clicking here.
Lastly, if you missed this chance to chat with me in person about the markets here in Toronto (and maybe sample some great poutine!), be sure to check out the New Orleans Investment Conference. It’s scheduled for October 26-29, 2016 in the Crescent City, and offers you a great chance to learn from some of the top minds in the investment world.
I’ll have a couple of sessions there, and would love to see you in the audience. You can find more details by clicking here or by calling 1-800-648-8411.
Until next time,