Feb 8th, 2013 8:30 est.
Jim Rogers Joins Bill Gross Warning on Treasuries – “I’m short long-term government bonds,” betting the securities will fall, Rogers, the author of the book “Street Smarts,” said yesterday on Bloomberg Radio. “I plan to short more. That bull market, that’s a bubble.”
Billionaires Dumping Stocks at Alarming Rates and Economist Knows Why – Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast. Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. Unfortunately Buffett isn’t alone. Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too… Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares. So why are these billionaires dumping their shares of U.S. companies?
Insiders Bailing on Dow 14,000 – Corporate Insiders Have One Word for Investors – SELL MORTIMER… SELL!
Some Trader Has Made A Very Big Bet That Something Very Bad Will Happen Within The Next 60 Days…. Stocks have been rallying relentlessly to post-crisis highs. Meanwhile, the volatility index (aka the “fear index”) is near historic lows. But according to UBS’s Art Cashin, some options trader has made an enormous $11.25 million bet that the VIX will explode higher very soon and a rally in the VIX is usually accompanied by a big drop in the stock markets.
CME Slashes Margin Requirements for Gold & Silver
The CME has just cut gold initial and maintenance margins from $6,600 & $6,000 to $5,940 & $5,400 respectively, and also slashed silver initial & maintenance margins from $12,100 & $11,000 to $10,400 & $9,500, a reduction of 10% in gold & 14% in silver! – With silver now in the low $30’s and sentiment now only slightly off historic lows, the CME Group appears to believe they have some room to breath by enticing a few more paper traders back in to the COMEX futures pits.
Silver at The Edge Of a Massive Breakout
In his latest market update, Greg Mannarino states that silver is at the edge of a massive breakout, and that the metal remains the most undervalued asset in the history of the world- but not for long. Mannarino states that we are standing at the precipice of a major upwards move in silver, and that the Fed will soon step in and increase the rate of quantitative easing and expand the scope of QE4, unleashing a flood of new counterfeited currency into the economy. Mannarino examines the cup and handle on silver’s weekly chart, and believes silver will run to $38 nearly immediately once silver’s current consolidation near $31.80 is able to take out $32 to the upside.
Inflation or Not, Gold Will Still Break $2,000 – “Everyone is always bearish at the lows, that’s the time to buy it, we’re going to get a good rally this year I think,” Harry Colvin director and senior economist at Longview Economics told CNBC Monday. Gold – considered a hedge against inflation – has rallied 400 percent over the last decade.
Jim Sinclair states that gold’s latest decline is similar to a the series of declines gold saw in the 70’s, just prior to it’s launch from $400 to $887.50 and that the current correction is the cartel shorts attempting to shake every last ounce of physical gold out of the public’s gold apple tree just prior to a historic vertical move in the metal. Sinclair states that this may be the last correction in gold and the last time gold investors will need to bite the emotional bullet and sit tight while enduring a major raid on the price of gold prior to the metal achieving $3,500/oz!
National Bank Financial economist sees “compelling” reasons for owning Gold Bullion. Gold may seem stuck below the US $1,700 per ounce mark, but U.S. data set to be released next week could provide bullion the lift investors have been waiting for. He estimates that upward revisions to employment levels, coupled with weak GDP growth, will drive 4th quarter unit labor cost inflation to 2.1% year-over-year, or 4% higher on a quarterly basis. This data is due to be released next Thursday. He also pointed out that the last time this happened, gold rose more than US $300 in the subsequent months.