Another Bullish Gold Catalyst – plus Rob Arnott Podcast!

Another Bullish Gold Catalyst – plus Rob Arnott Podcast! from King World News

Here is another bullish gold catalyst, plus the “Light at the end of the tunnel.”

Another Bullish Gold Catalyst
July 13 (King World News) – Peter Schiff:  Once again traders are making the mistake of believing that a bigger than expected rise in producer prices is bearish for gold. Both consumer and producer prices are headed much higher. The Fed will do nothing to restrain the rise. This is extremely bullish for gold!

King World News note: Here is a very fascinating chart:

Inflation, The Great Destroyer Of The Middle Class: Inflation Greatly Outpacing Wages, Especially Priced In Gold

Today’s More Interesting Development
Bill Fleckenstein:  The indices were back in the plus column through midday, led again by the Dow, which gained 0.5%, compared to smaller upticks in the S&P and Nasdaq. However, today’s more interesting development from my perspective was the price action of Illumina (ILMN).

The “Light” at the End of the Tunnel
Last night the company reported that its revenues would be a little light and the stock was smacked for about 15%. The reason I think that is worth noting is because before today it sported about a $50 billion market cap and traded at 12 times revenues. Thus, it is both large and expensive, although a revenue multiple of 10 to 12 is only sort of the middle of the road in terms of the absurd expensiveness we see regularly these days.

I have long said that I don’t see how a market that has been built on the sort of variables, facts, and crazy ideas this one has can end in any other way than dislocation. Obviously, it is hard to have dislocation when the Fed continually has the market’s back, but I do believe that individual stocks will dislocate in a major way from time to time until the environment is right for a whole lot of them to do it. When that will be, I don’t know, but it will be interesting to see if there are any clues during earnings season.

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King World News

Interviews with market experts from around the world with a focus on precious metals.