Stock Market: Bubbles Are Developing

The U.S. stock market is at all time highs and bubbles are developing. Amazon goes up every day, Tencent goes up every day. Samsung goes up, every day. There are some bubbles developing in shares in many markets, not everywhere. There are many stocks in America that are not up but bubbles are developing. 

I have seen this movie before. Lots of new people coming into the market, everyboy says it is so easy to make money buying shares, they tell their friends... I have seen all of this. This is not the first time I have been to this movie.  

So, bubbles are developing in financial markets and when it breaks, like every other bubble is going to hurt very badly.

Money Is Being Flooded Into The World

There's gigantic amounts of money being flooded into the world by central banks and governments. Therefore markets are happy right now. 

This is all going to end very badly when it ends but at the moment it's great. 

If you give me trillions of dollars we will have a very good time I promise you. But of course I don't know how long the good time will last but while it lasts we're going to be really, really happy.

Gold: Weak Hands Being Shaken Out

Peter Schiff's update on the precious metals markets: 

"Gold is getting hammered. It's down $40 per ounce, trading back below $1,800. Silver is down $75 cents per ounce, back below $26. Despite extremely bullish fundamentals and news the big guys are determined to teach the little guys a lesson by shaking them out of the market." 

Gigantic Debts Are Being Built

 Right now, most politicians including in the United States say, no we should not be concerned about the budget deficit, we must be more concerned about taking care of people who are not working or companies that need help. 

That is a good argument but the debt that is being built up is going to be staggering. It is not good to be a young person now because young people are going to have a huge debt to pay off. If I were in charge I would not go spend this gigantic debt. 

Emerging Markets: Always Excited About India

I’m always excited about India.

I’m very excited to see that India is opening up agriculture.

India has needed that for decades.

Bitcoin: Ray Dalio & Elon Musk

Interesting take from Peter Schiff on Bitcoin, Ray Dalio and Elon Musk,

"If Elon Musk or Ray Dalio intended to buy Bitcoin they would not announce it to the world in advance. They clearly know the effect such an announcement would have on price. So either they already bought all the Bitcoin they want to own, or they are unlikely to actually buy any."

--Peter Schiff

Jim's First Trades

 

Jim Rogers tries to remember his first trade and describes his early experiences on Wall Street.