LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Gets a Boost of Rocket Fuel From Negative Bond Yields
By: Frank Holmes, US Funds

The Gold (and Silver) Volcano Is Ready to Erupt
By: David H. Smith

Precious Metals Update Video: Where do you park money? Stock markets and hard assets
By: Ira Epstein

Recognition and Adjustment
By: Craig Hemke

After This Confirmation Gold Prices Will Rise Fast
By: Hubert Moolman

Will Silver Soon Follow Goldís Lead?
By: Stefan Gleason

GoldSeek Radio: Dr. Chris Martenson & Bob Hoye
By: Chris Waltzek Ph.D., GoldSeek Radio

Goldís Century
By: Michael J. Kosares, USA Gold

What Gets Measures Gets Improved
By: Keith Weiner, Monetary Metals

SWOT Analysis: Central Banks Continue to Show Their Love for Gold
By: Frank Holmes, US Funds


GoldSeek Web

Far Bigger Concerns Than Game of Thrones

By: Rick Ackerman, Rick's Picks

 -- Published: Monday, 20 May 2019 | Print  | Disqus 

So how does Game of Thrones end? Never having watched the show, I couldnít care less. But thirty million fans evidently do. We havenít seen America this worked up about so trivial a concern since Kristin Shephard shot J.R. Ewing nearly 40 years ago in a landmark episode of Dallas. TV was free back then, and so the audience worldwide was more than ten times that of Game of Thrones.  Could the current obsession with a hyped-up TV show explain why the stock market is flirting with new record-highs even though the economic world is on the brink of recession? Unfortunately, this is no exaggeration. Europe has been slumping toward growthlessness while China and the U.S. are in a tariff war that seems likely to worsen, reversing a decades-long global trend toward freer trade. This is a very big deal, a watershed change in a seemingly rosy economic picture, but you couldnít tell this from watching the stock marketís near-vertical ascent since January. The rally continued last week ahead of an ominous report that capital spending, a key driver of economic growth, fell dramatically in Q1 for a broad cross-section of large U.S. companies.

Q1-capital-expenditures.jpg (879√—740)

Stocks have risen anyway, not because investors are convinced of a brighter tomorrow, but because the flow of funny money into stocks has become well nigh unstoppable. It is a perpetual-motion machine requiring only a drop of lubrication from sunny unemployment numbers to keep things humming. In reality, low joblessness reflects only a superficial aspect of the U.S. economyís supposed strength.  It is a trickle-down effect that has not helped to alleviate the massive debt burden of Americans one bit. To the contrary, it has only pushed consumers to borrow more, making an inevitable day of reckoning even more traumatic.

Bread and Circuses

Indeed, the tension will only continue to grow between a thousand-year-flood of credit money and a manic bull market that would have died long ago without it. Huge share-buybacks, more than any other source, have helped keep stocks buoyant. But the companies themselves are arguably the poorest judges of the value of their own shares. Clearly, they are oblivious to the hazards posed by a global trade war and the sharp slowdown that is coming. ďU.S. companies have been buying back their own shares at a blistering pace for more than a year, and market turbulence isnít likely to stop them now,Ē declaimed The Wall Street Journal in Fridayís lead story. Just so. But if market turbulence does not stop them, it is 100% predictable that something else will.

No one can predict what this will be ó and in fact my own technical works allows for a rally of about 8% in the broad averages regardless of whether the economic/geopolitical picture worsens.  In the meantime, bulls thinking about exit shares should be grateful for the distraction of Game of Thrones and the bread-and-circuses revelry that has sustained the mania and grown their wealth. The smart money will be headed shortly into U.S. Treasury paper, and so should you. 

Start a free two-week trial subscription by clicking here. Make the Coffee House chat room your first stop. There you will meet some of the best-informed crypto fanatics in the trading world.


| Digg This Article
 -- Published: Monday, 20 May 2019 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.