David Stockman Warns Investors “Get Out Of Harm’s Way”


Today David Stockman warned King World News that people need to be prepared for tremendous chaos in global financial markets, and investors need to “get out of harm’s way.”  Stockman is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget.  Below is what Stockman had to say in part II of his powerful and exclusive interview.

Eric King:  “You’ve talked about large carry trades, and I’m just wondering what your vision is of how those will unwind?”

Stockman:  “That’s what’s wrong with zero interest rate policy and keeping the overnight rate at zero.  It allows people to buy assets that have any kind of yield or any kind of appreciation, put them up as repo, and borrow 95 cents to 98 cents on the dollar.

This isn’t a natural way for a market to function.  The point is that if confidence is ever lost that the Fed and the other central banks of the world can keep this game going, these massive trillions of dollars of carry trades of this sort will unwind….

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/23_David_Stockman_Warns_Investors_Get_Out_Of_Harms_Way.html

Silver Set To Advance A Remarkable 800% From Current Levels

With continued uncertainty in the gold and silver markets, today a 58-year market veteran told King World News that silver will advance roughly 800% and gold is set to soar over $3,000 from current levels.  Ron Rosen, who has been at this business for almost six decades, also spoke about the mining shares..

Eric King:  “Ron, you’ve been doing this for 58 years, where are we right now as you see it in the gold and silver bull markets?”

Rosen:  “We are on the verge of the biggest move in the history of the precious metals market, and it’s not far away from beginning.  It’s going to be a monster move….

“What I don’t understand is why everybody doesn’t see it.  There are so many analysts out there and if they just knew how to look at a monthly chart, and put it in a logarithmic form, they would see that gold and silver are going to explode.

This explosion higher in the price of gold and silver will just be Mother Nature at work, and there is nothing on the face of this Earth that can stop it — no individual, no central bank, no country, and no collection of countries.”

Eric King:  “You went through the bull market of the 1970s.  How do you think this market will compare to that one?”

Rosen: “It will outperform it to such an extent that it will almost be beyond belief.  We are looking at a massive move in front of us that will top sometime in 2014.  At that point there will be a correction.  Then, a massive blowoff will take us probably into early 2016.  People who have been tortured by this long corrective phase, they will be thrilled if they have the ability to hang on.  They just need patience here.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/15_Silver_Set_To_Advance_A_Remarkable_800_From_Current_Levels.html

Here Is The Investment Opportunity Of A Lifetime

Rule: “The thing that is most interesting to me right now is the turbulence in energy markets. The energy markets are so large and there has been such incredible turbulence in them that it has definitely caught my attention. The focus of my financial attention has been attempting to get either debt or equity deals done among the micro-cap issuer community in junior mineral or exploration companies. In that I have been unsuccessful….

Eric King: “The sentiment on gold and silver is at the dead lows even though the metals have bounced here.”

Rule: “I think that’s a continuation of an earlier theme, and I don’t think people are paying attention. In the gold and silver markets you have been seeing the futures market for a substantial period of time setting price, as opposed to the physical market.

At the same time you are seeing the selling pressures that drove the physical market lower begin to abate. Those selling pressures were the unwinding of leveraged, momentum-driven carry trades. These involved either gold futures or the gold ETFs.

All of this has resulted in a massive accumulation of physical gold and silver into very strong hands. This involves players in the Eastern hemisphere, as well as retail investors who are unleveraged, that are buying physical gold and silver.

We are also beginning to see the futures markets bottom out at the same time the physical market is incredibly strong. We have also seen the gold lease rates have gone up fairly substantially. This strongly suggests that a lot of the physical gold, which was in bank hands and available for leasing, has been disposed of into the physical markets.

These are fairly bullish signs. I can’t tell you exactly how it’s going to play out, but I do believe that at the very least, in the near-term, the gold and silver markets will stabilize.”

Eric King: “With things as decimated as they have been in the gold and silver space, many times you see markets come out of the hole and it doesn’t really take news to drive it. The markets just start going higher.”

Rule: “You are exactly right. What happens is that you exhaust the sellers. The interesting thing is that the buyers are somewhat exhausted too. It’s sort of like two ‘world class’ fighters who have been battling for 13 rounds and only have 2 more rounds to go, but neither have much energy left to hit each other.

But what you just said is exactly what I’ve experienced in past market cycles like these. The stocks start to move up because they stop moving down. Again, you exhaust the sellers. Everybody is looking at tax loss selling this year, but people forget that you have to have some gains to shelter with the losses. And U.S. speculators haven’t done that.

Furthermore, in Canada where you can take losses this year against gains that you acquired in the three prior years, what you are finding is that the people usually were able to use up those prior gains with last year’s losses. So I suspect that tax-loss selling this year will be much less pronounced than it has been in earlier seasons.

I strongly believe that the highest quality mining shares will move higher the rest of the year, and I certainly believe that the worst of the pressure is off of the junior stocks. There has just been a lack of buyers to meet the lack of sellers.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/12_Rick_Rule_-_Here_Is_The_Investment_Opportunity_Of_A_Lifetime.html