Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Recommended Posts

Dennis Gartman in his Wednesday letter said something that hit some buttons.


"In reality, all that this shall do is give Greece time and a sense of hope: time to grow the economy and hope that the economy will in fact grow. The harsher reality from our perspective is that extending the term structure of Greece’s debt will only serve to keep the patient on drugs that he cannot be weaned away from a bit longer and nothing more. Greece cannot pay its current debts, and certainly it cannot pay those same debts + several hundred billion more EURs unless something truly magical… truly unexpected… truly something historically improbable or utterly impossible were to come to pass… manger scenes, the ’69 Mets, and the US hockey victory over the Soviets notwithstanding.


We’ve absolutely no belief whatsoever that Greece can grow its economy. Corruption is too endemic; socialist thinking has become too pervasive; the work ethic has been lost entirely and the government seems intent upon moving farther and farther left-ward rather than facing the harsh realities of the current situation. So long as the Papandreou family remains involved in the Greek government, Greece shall remain moribund and socialist, and so long as it remains moribund and socialist any hopes to revive the economy there are doomed to failure."


Corruption is too endemic: socialist thinking has become too pervasive; the work ethic has been lost entirely and the government seems intent upon moving farther and farther left-ward rather than facing the harsh realities of the current situation. The words should ring a bell for us here in the USA. We are heading down this same path and if we are not careful we will find ourselves broke in a country that our fore father conquered. USA is still the greatest place to live and we need to keep it that way.


Greece is in trouble and needs to default on its debt. There I said! When we purchase a bond or a country’s debt we are not guaranteed anything. A country that can not pay its debts has to default and pay the consequences of their actions. There is always a consequence for our actions, sooner or later, we as a nation will have to pay the consequence of over consumptions and dependency on debt. Greece is not the only sick nation out there. We all have a debt problem. It is time we pay the reaper for our insanity. It will not be easy and many difficult years lie ahead, but it is a must. It is not fair for us to continue to kick the rock down the road and let our children pay for our sins. It will be ok and the quicker we turn and face the problems the quicker we get out of this mess and can return back to real prosperity, not this smoke and mirrors that we are currently living in. I apologize for the little rant now back to the markets.


Wilbur Ross made a great analogy of the markets. Yesterday, when asked what the near future held for the US economy, Mr. Ross said that he was not looking for the economy to “make a ‘V’ or a ‘W’ or an ‘L’ or any other kind of alphabetical formation, ‘but instead suggested that it shall be a “Morris Code” economy where it makes dots and dashes instead, going nowhere over time, but doing so in surprising fashion as it moves from strength to weakness to strength and to weakness again.


If that is the case will play the markets using “Morris Code” I would suggest everyone do the same. Meaning be caution and patient. We have to take one dash or dot at a time. There are far too many problems facing the economy right now. Here is a short list a just a few of them


Europe’s debt problems are incurable, the USA government can’t seem to stop spending, the US job markets has not improved despite what Obama tells you. Government all over the world are spending more then they are bringing in. Money is being printed night and day thus decreasing your assets values. Oil will continue to climb, Unaffordable health care will never be solved, Housing market continue to decline, the stock market is inflated by government money, wars and revolutions are sweeping the Middle East, and Japan is dealing with the damage caused by the tsunami. Has it ever been this bad? In the past, one of these problems would have been enough to cause some concern, but to have them all taking place at once is just ludicrous. In many ways, a “perfect storm” is developing and we ought to be extremely concerned about what lies in our future.


Lets be cautions! Cash is not a bad thing

Share this post

Link to post
Share on other sites

Gold and Silver are speculation and should be treated as such. I would agree that income producing assets are a good thing especially dividend paying stocks.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Topics

  • Posts

    • its a slow start for 2021, but BTC is having a blast, hitting the 40k mark, will it continue, though its back at 32k++right now
    • a fun perspective on MSM’s role in recent events https://www.hangthecensors.com/490535.html     plus more inauguration day / welcome to north venuazala tidbits ...  2,000 attendees at inauguration — and 25,000 military — just like ‘regimes’ in banana republics ... just sayin'  
    • This is precisely the way MSM would describe it... :snarc: https://internationalman.com/articles/the-coming-new-order/ https://mises.org/wire/what-bidenharris-will-do
    • Date : 23rd January 2021. FX Update – January 22 – USD Holds gains & PMI’s. GBPUSD, H1 The Dollar has firmed up on a safe haven bid with the reflation trade having come to a firm stop. The USDIndex lifted moderately to a 90.25 high after basing out at a nine-day low at 90.05. The US currency gained only marginally against the Euro and Yen, but racked up gains of around 0.4% to 0.5% against the Pound and dollar bloc currencies. EURUSD ebbed back from an eight-day high at 1.2178, before recovering to 1.2188 following Eurozone PMI data, while USDJPY lifted to a two-day high at 103.70. Global equity indices corrected from record highs in the cases of the main US indices and the MSCI Asia-Pacific Index. Base metals are also markedly lower. Lofty valuations and an increasing level of concern about the Covid situation have warranted increasing investor caution. Covid restrictions have been implemented across northern China, and the new highly transmittable variant of the SARS-Cov2 coronavirus — aka the British variant, where it was first detected — has shown up as far afield as Beijing and Australia. The EU looks set ban travel to the UK, while the UK has already imposed much tougher international travel restrictions. The rollout of the Covid vaccinations globally has also been proving to be bumpy. Elsewhere, cryptocurrencies dropped sharply again, which will only add to their reputation for being too volatile for serious institutional investors to touch. Reports that the Biden administration has tighter regulations for cryptocurrencies on its ‘to do’ list have been driving cryptos lower. Bitcoin was showing an 11% loss on the day, as of the early London morning, at $30,860 — which is nearly 26% below the record high seen earlier in the month. The virtual coin earlier traded below $29,000 for the first time since January 1. Eurozone Flash PMI readings declined as lockdowns were strengthened and/or extended. The last minute Brexit deal may have helped to prevent a worse number for the manufacturing sector at least, and the decline in the Eurozone manufacturing reading to 54.7 from 55.2 was actually less pronounced than feared with the number still pointing to a solid pace of expansion. Services meanwhile are clearly suffering. The Eurozone services PMI dropped back to 45.0 from 46.4, driven largely by a sharp deterioration in the French reading, which fell to 46.5 from 49.1. The German index held up better than feared and dipped only slightly – to 46.8 from 47.0. The overall composite for the Eurozone came in at 47.5, down from 49.1 at the end of last year and supporting expectations for a technical recession over the Q4 and Q1 period. Across the Channel UK PMI data showed a woeful record for Services and came in much weaker than expected. The headline composite PMI plunged to 40.6 from 50.4 in December. The median forecast had been for a 45.5 reading. Pronounced weakness in the service sector drove the composite lower, with services bearing the brunt of the lockdown across the UK nations, which has been the most severe since last year’s ‘mother’ lockdown. The prelim services PMI headline dove to 38.8 from 49.4. The prelim manufacturing PMI fell to a headline reading of 52.9 from 57.5, which was near the median forecast for 53.0. Much of the manufacturing sector remains open, despite the lockdown. The drop in the composite reading, while sharp, is still less much less severe than was seen during early spring last year. There are hopes that the UK’s world-leading vaccination programme will start to see restrictions lifted from as early as mid February, by which time all the most vulnerable groups should have been vaccinated. Cable trades down to test 1.3650, down from yesterday’s high at 1.3745 and today’s open at 1.3729. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Yes, its important to select a forex broker, start by looking for brokers that are regulated in your country. Next, read full length forex reviews to assess the trading costs, tools, research capabilities, customer service, and other features of each forex broker. Finally, compare your top two choices side-by-side to decide on a winner.
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.