Grandich Interview and Brief Markets Observations

  • I discuss coming auto-loan and pension crisis, geopolitical concerns and the political turmoil in D.C., and their potential impacts on financial markets with Drew Mariani here
  • The U.S. stock market continues to weaken internally (with broader market indexes declining the most). This is “A” typical during a topping process. I maintain my personal short position.
  • Gold continues to be sold hard whenever it peaks at, or gets above, $1,265. I’ve noted this is the area it needs to clear before a far more significant run can occur. The good news is, the pullbacks from that area are weaker and less time in duration; thereby suggesting it’s getting close to being overcome. But with the holiday atmosphere near-term, I wouldn’t put too much into any move in any market next week.
  • I feel the proposed 5 for 1 rollback in Teranga Gold is a necessary evil. With close to 550 million shares outstanding, and trading under $1, the stock can’t attract the institutional interest a company doing as well as they’re because it’s considered a “penny stock”. It will be IMHO, far easier to go from $4 to $8 than from $.80 to $1.60, because after the rollback, there will likely be less than 70 million shares in the float (thanks to the major shareholder is a very unlikely seller). The CEO recently spoke here. I hold all my shares and also the same for Nevsun Resources.