Knowing the election will be the single biggest impact to most financial markets for the near-term, please let it be known if it was strictly up to me, I would wish “Granny” had her way (see here).
U.S. Stock Market – While this morning’s employment number is another in a series of “Ho-Hum” results (Given we added trillions to our national debt and all we got is meager growth and more people on some sort of government assistance than jobs created), it’s enough impetus to let the FED (who are badly behind the curve) save a little face and raise interest rates in December.
We just had more down days in a row since the last financial crisis in 2008. But rest assured, the “Don’t Worry, Be Happy” crowd on Wall Street will continue their happy tune (they’re a one song band). Remember, you can toss them all off the top of the Empire State building, and they all will say the same thing all the way down – “SO FAR SO GOOD!”
U.S. Bonds – Have begun pricing in an interest rate rise for weeks now, but need to go a very long way down in price and up in yield before they become attractive again. Their days as a lesser of two evils versus equities, are behind us. Both are equally evil (I’m referring to bonds, not Bill and Hillary Clinton).
U.S. Dollar – It remains the currency of choice only by default. If I was into currency speculation (I’m not), I would be eyeing the British Pound and the Canadian Dollar on any further real weakness.
Oil – I stated a few months ago that it appeared trapped between $40 – $50 and see no reason to change that “lucky guess”.
Gold – Love it! Any questions?
Base Metals – I’m treating this comment like “Old-Timers Day” from my three decades of publishing the Grandich Letter, where upon I spoke here, there, and around the world on metals and mining (and came so good at it I lost millions not once, but twice).
With China’s economy showing signs of some strength, copper appears to have put in a long-term bottom and zinc is especially strong. I could leave it at that and return to the peace and quiet that has surrounded me since leaving that arena, but since I’m a glutton for punishment, I will go back on my own word (sinner save by Grace – thank God) and mention the only two stocks I own:
Nevsun Resources (NSU $2.77 Yield 5.73%)
Teranga Gold (TGCDF $.76)
If you truly can afford to lose part or all of your capital and suffer the mental anguish that comes with such an event, than I would say gambling a few dollars on one or both of these from these price levels seem to offer high speculative reward/risk ratio. But keep in mind, I lost more money on mining shares than I ever imagine as a young man I could make in a lifetime (Not to mention I loaded up on Cleveland Browns 2016 Super Bowl Champions merchandise).
Special Note – While this commentary was a bit like the old days, I continue to work on refocusing my companies’ efforts to be more “Christ-center”.
Trust in the LORD with all your heart, on your own intelligence do not rely; In all your ways be mindful of him, and he will make straight your paths.” Proverbs 3:5-6