-- Published: Sunday, 31 July 2016 | Print | Disqus
Featured Guests
Bill Murphy and Bob Hoye
Summary
•Bob Hoye, senior investment strategist at Institutional Advisors returns with comments on global equities indexes. •Policymakers are purportedly moving heaven and earth to prop up shares. Case in point. •Economic Emperor, Shinzo Abe's regime is holding rates in negative territory, adding to the $13 trillions in total negative debt, worldwide. • Consequently, negative rates is financial plutonium to the precious metals sector, as supported by Barsky and Summers (1988), via Gibson's Paradox. •The S&P valuation is overextended with a price to earnings ratio (PE) near 25, much higher than the typical PE of 10-15 level. •The 7 index sentiment index, which includes the put / call ratio among other metrics is the most elevated in years, another indication of frothiness. •A recent study identified a direct link between the economic depression in Greece and sovereign debt. •One of the world's leading banks, Deutsche Bank, shares continue to collapse due to reckless debt. •The top 6 US money center banks hold an estimated 300 trillion dollars of interest rate sensitive, notional derivatives debt on their books.
• Bill Murphy from GATA.org returns to the show with insights on the PMs sector. • He notes the newly bullish character of gold / silver. The official gold rigging or "fix / pool" continues to unravel, representing an investment opportunity. • Our guest examines the minutiae of the silver market, including unusual pre/post Fed meeting activity. • Open interest imbalances could catapult the price first to $30, followed by $50, then onwards and upwards to $100 an ounce. • His work reveals that a investment bank is primarily responsible for silver price suppression; •The misguided financial institution has lost the reigns of the silver paper market, which could result in a force majeure and windfall profits for silver bulls.
With a degree in geophysics and a number of fascinating summers in mining exploration, one winter in "the bush" quickly led Bob into the financial markets. This included experience on the trading desk and in the research department of a large investment dealer, which led to institutional stock and bond sales.
Bob's review of financial history provided the forecasting models designed to anticipate significant trend reversals in the sometimes alarming volatility typical of the transition from rampant speculation in tangible assets to fabulous speculation in financial assets.
In anticipation of the latter opportunity, a monthly publication for financial institutions was started in January 1982.
This competently covered the stock market, the yield curve, credit spreads as well as metal and energy prices.
In 1998 the Institutional Advisors website was started as a forum for unique and reliable financial research.
Bill Murphy, GATA Chairman Murphy grew up in Glen Ridge, N.J., and graduated from the School of Hotel Administration at Cornell University in 1968. In his senior year he broke all the Ivy League single-year pass-receving records. He then became a starting wide receiver for the Boston Patriots of the American Football League. He went on to work for various Wall Street brokerage firms and specialized in commodity futures. He began as a Merrill Lynch trainee and went on to Shearson Hayden Stone and Drexel Burnham. From there he became affiliated with introducing brokers and eventually started his own brokerage on 5th Avenue in New York. He now operates an Internet site for financial commentary, www.lemetropolecafe.com.
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