Stocks and Precious Metals of Charts - Calm Before the Storms - Gold May Shine In 2019

"The corporate bond market has all kinds of problems. I think investors should use the strength of junk bonds that's happened as a gift and get out of them.  Corporate credit, as a percentage of GDP, has never been higher.

The leverage in the corporate economy is very bad, There's been a lot of buybacks — borrow money at low rates, buy back stocks — which of course, it's just turning the equity market into a CDO residual, an equity piece, that's getting thinner and thinner, riskier and riskier.

I think investors need to go to strong balance sheets.   Strong balance sheets are going to be the way to survive during the zigzag of 2019."

Jeffrey Gundlach


"Goldman Sachs Group Inc. is leading a pack of bullish voices cheering for gold.  The bank’s analysts led by Jeffrey Currie raised their price forecast for gold, predicting that over 12 months the metal will climb to $1,425 an ounce -- a level not seen in more than five years.  Bullion has benefited as rising geopolitical tensions fuel central bank purchases, while fears of a recession helped boost demand from investors seeking 'defensive assets,' they said."

Bloomberg, Goldman Predicts Gold Prices to Climb to Highest Since 2013

The beginning of January has gone a little better for the bulls than they might have imagined in the throes of the December declines.

Earnings results should start trickling in and this may help to provide some more rigor to stocks than the steady propping up of equities by the PPT.

Gold looks poised for a breakout, but it needs to break through that stubborn overhead resistance first. Until then its all just speculation.

It seems that Goldman just put out a bullish forecast for gold this year. No wonder they were taking all those Comex delieveries for their house account last year.

Need little, want less, love more. for those who abide in love abide in God, and God in them.

Have a pleasant weekend

The Price of Gold Compared to the US 'King Dollar' Index

Here is a comparison of the US Dollar DX Index and the price of Gold in US Dollars.

There is a fairly reliable inverse correlation. That means when the dollar moves higher, gold tends to move lower. And vice versa.

This does not have to be the case. It just sometimes works out that way.

The true corrleation may very well be considered a positive one to some currency component of the DX index, such as the Euro.

Sometimes both values, gold and the Dollar, move together, especially during periods of risk stress when both gold and cash dollars may act as safe havens.

Stocks and Precious Metals Charts - It's Worse Than You Think

Nero Addressing the Senate: Ancient Rome Rise and Fall of an Empire

"What is objectionable, what is dangerous about extremists, is not that they are extreme, but that they are intolerant.  The evil is not what they say about their cause, but what they say about their opponents."

Robert Kennedy


"Fundamentally, narcissists are stuck emotionally at the approximate development stage level of a three-year-old, and consequently they lack the most basic ability to care about the feelings, needs, and perspectives of others.  Yet, as savvy adults, their powers of manipulation are off the charts… feeling sorry for the narcissist is an invitation to being abused and victimized-idealized, devalued, and rejected; or, worse, agonizingly anchored."

Julie L. Hall


"Narcissists have secret lives.  They lie effortlessly.  They are two faced-appearing with a perfect public image that most people believe."

Linda Martinez-Lewi


"It seems that under the overwhelming impact of rising power, humans are deprived of their inner independence and, more or less consciously, give up establishing an autonomous position toward the emerging circumstances.  The fact that the foolish person is often stubborn must not blind us to the fact that he is not independent. In conversation with him, one virtually feels that one is dealing not at all with him as a person, but with slogans, catchwords, and the like that have taken possession of him. 

He is under a spell, blinded, misused, and abused in his very being. Having thus become a mindless tool, the stupid person will also be capable of any evil and at the same time incapable of seeing that it is evil. This is where the danger of diabolical misuse lurks, for it is this that can once and for all destroy human beings."

Dietrich Bonhoeffer


"For we wrestle not against flesh and blood, but against principalities and powers, against the rulers of the darkness of this world, against spiritual wickedness in high places."

Ephesians 6:12

Stocks were walked up again today, keying in on the SP 500 futures.

Interestingly the dollar was walked up a bit as well, with gold and silver falling commensurately.

I am puzzled about the support for the dollar at these levels. It is not clear to me what officialdom is thinking, since a weaker dollar is so obviously favorable to real economic recovery.  Even Trumpolini understands that.

But some do benefit from it, and one has only to follow to money to see who it is that they are.

We have so many soulless people in positions of power now that when evil makes its presence public it just fills the void and has its way with them.  And the weak willed and the morally indifferent follow.   Such is the root of our misery.

The rest of the world is deeply concerned, as well they should be. We would be more concerned if we were not so close to it. We are taking more and more outrageous things in stride.

This is nothing new in history, of course.  But the moral vacuum is of an ascendant size and quality now that is seen only once in a generation or two.   And the results of this are often memorable.

'And they were utterly astonished, for they did not understand the miracle of the loaves, because their hearts were hardened.'

Have a pleasant evening.

US Dollar Very Long Term Chart

"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin.  But both are the refuge of political and economic opportunists."

Ernest Hemingway