The FDIC explicitly highlights the risk, noting that, in an economic downturn, shadow lenders may need to sell assets, putting downward pressure on asset values.
Ira Epstein discusses the potential for escalating military actions and the economic implications, such as rising oil prices, which are affecting global markets.
The entire $4100-$3900 area is best viewed as a “buy zone of champions”. The downtrend line has been penetrated and a surge to another key trend line at about $4400 appears likely.
Ira Epstein highlights geopolitical tensions, particularly the U.S. and Iran's strained relations over nuclear facilities, and the implications for global energy markets.
Gold and silver have risen after the completion of the soccer World Cup. I believe that there will be a FOMO rally in gold and silver if there is a bullish trend for the next two days.
Ira Epstein notes that metals remain weak, the dollar index has strengthened, and provides an overview of gold's performance, indicating minimal movement.
Gold equities remain inexpensive relative to bullion, with companies now holding strong net cash positions, generating robust free cash flow, and likely to increase capital returns.
Stocks are faltering and August/September is noted as a poor period for stocks. Meanwhile, gold, silver, and gold stocks appear to be under accumulation despite another sell-off. The August/September period is usually good for gold.
To close, we remain mindful of the S&P “Casino” 500’s excessive (understatement) overvaluation, the price/earnings ratio at this writing (per the opening Scoreboard) at 44.9x, (i.e. double, indeed triple, as was taught in portfolio theory).
