Gold & Precious Metals
What rioting, what 40 million unemployed, what second wave? The MSCI All Country World Index has risen for 8 days in a row, a testament to the fact that not only retail investors but global markets now view stocks as a risk free asset, assuring that the next bursting of the bubble will be unforgettable, prompting even Bill Dudley to say on BBG TV that “some Fed intervention has created a bit of moral hazard.” That’s right Bill, and it may have something to do with the fact that overnight America burned for an 8th consecutive day in nationwide riots as tens of thousands of people defied U.S. curfews to take to the streets.
Anyway, until the next crash all one can do is buy, confident that central banks will always be there to step in and bail everyone out, and sure enough world shares hit three-month highs on Wednesday and the dollar fell for the sixth day on the usual narrative of “hope” and “optimism” for more monetary stimulus and the global economic reopening, while ignoring the worst civil unrest in the United States in 50 years as well as rising COVID-19 tolls. Read More
Value stocks have outperformed growth stocks as buying volume has rotated out of the best-performing stocks of the year and into some of the laggards, but LPL Research analyst Jeffrey Buchbinder said Monday there are several reasons why value stocks’ time in the sun may be short-lived.
5 Reasons Growth Stocks Are Still King
Buchbinder said the impressive breadth of the stock market’s rally off of March lows is encouraging for investors and suggests stocks are still a better bet than bonds overall for the remainder of 2020 and in the long-term. However, he listed at least five reasons it’s unlikely value stocks will continue to beat out growth stocks as the economy recovers:
An MIT spin-out company is planning to cross the commercial nuclear fusion finish line before anyone else, and big money is backing this game-changing tech that will dictate our energy future by promising unlimited zero-carbon energy–the holy grail. By 2025, Commonwealth Fusion Systems (CFS)–an MIT spin-out–plans to see is SPARC project become the first fusion reactor to show “net energy gain” by 2025. By 2030, it intends to make nuclear fusion a commercial reality, disrupting all those nuclear fusion experiments elsewhere in the world that have been working towards this a lot longer, and disrupting energy–forever.
Microsoft billionaire Bill Gates believes it. He was the first big backer of CFS. And now, Norway’s oil giant–Equinor–is throwing money behind it.
Last week, CFS–founded only in 2018–raised another $84 million from investors in Europe and Asia, bringing the total raised by the nuclear fusion startup to $200 million. Singapore’s Temasek Holding Pte was also among the key investors for this cash round… CLICK for complete article
The world is currently navigating through uncharted economic waters as the coronavirus lockdown has sent many economies globally into a significant recession. Historic monetary and fiscal policy has been deployed these last few months, which seems to be far from over.
Now many economies are beginning to consider negative interest rates due to the lack of options to combat a recession. Historically, Central Banks would have the option to dramatically cut rates to help stimulate the economy, but today throughout all major economies, interest rates are already at extreme lows. Read More
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