Over the last six months silver has been forming a bullish cup and handle chart pattern. Combining this buy signal with the now dovish FED presents a fantastic opportunity. Not to mention we beneath $16/oz. and silver was almost $50/oz. three years ago. But how should one take advantage of the situation with silver?
Well, we ourselves have purchased shares of the Global X SIL ETF at $26.00 per share. This is an ETF that is comprised of 20 silver mining companies. The last period of bullish sentiment in silver was between Dec. 2015-Aug. 2016. Silver saw a price increase going from just beneath $15/oz. to just over $21/oz. This is a nice 27% increase in the metal price. However, the SIL ETF saw their holdings increase from $14/share to over $50/share. This is a 300% on a 27% move of the commodity that the ETF follows.
Good luck to all investors!
Whole Foods is now owned by Amazon if you’ve been kept in the dark. As you may know-Whole Foods does not disclose their “proprietary” method for selecting new locations. The reason why this has remained secret is due to what is known as the “Whole Foods” effect. Essentially, the Whole Foods effect is simply that whenever they enter a neighborhood-the real estate values go up. Of course Whole Foods would not want to disclose their method for real estate selection as this could drive prices up before they step in the door.
Some commonalities that have been noticed in Whole Foods selection process are they are often located on highways with direct access to a cities downtown. They have a heavy college graduate population. They are also taking an approach to be implemented in mixed use developments.
Now, Whole Foods currently being owned by Amazon and their CEO Jeff Bezos puts in interesting ingredient into their selection process. That interesting ingredient is Jeff Bezos and his political leanings swinging far left. Keep that in mind as you take a look at the next upcoming 55 cities Whole Foods plans on opening.
- Arizona – Tempe
- California – Long Beach
- California – Los Alamitos 365
- California – Malibu
- California – North Hollywood 365
- California – Porter Ranch
- California – Poway
- California – Redlands 365
- California – Sacramento
- California – San Diego
- California – San Francisco (Russian Hill) 365
- California – San Francisco (Stonestown)
- California – San Francisco (Trinity)
- California – Santa Monica
- California – Sherman Oaks
- California – South Lake Tahoe 365
- California – Sunnyvale
- California – Temescal 365
- District of Columbia – Washington (Florida Ave)
- Florida – Delray Beach
- Florida – Ft. Lauderdale
- Florida – Jacksonville Beach
- Florida – Miami
- Florida – Tampa
- Georgia – Atlanta (Midtown)
- Hawaii – Honolulu
- Illinois – Evergreen Park
- Indiana – Bloomington 365
- Maryland – Baltimore
- Maryland – Towson
- Massachusetts – Beverly
- New Hampshire – Portsmouth
- New Jersey – Jersey City
- New Jersey – Montgomery
- New Jersey – Parsippany
- New Jersey – Wayne
- New Jersey – Weehawken 365
- New York – Commack
- New York – Manhattan West
- New York – One Wall Street
- New York – Rochester
- New York – Westbury
- Ohio – Kenwood 365
- Ohio – Toledo 365
- Pennsylvania – Newtown Square
- Pennsylvania – Pittsburgh
- Tennessee – Nashville
- Texas – Frisco
- Texas – Houston (Midtown)
- Texas – Irving
- Utah – Draper
- Virginia – Fairfax 365
- Virginia – Greensboro (Tyson’s Corner)
- Virginia – Richmond (West Broad Street)
- Washington, West Seattle
Out of these 55 cities-51 of them are under democrat control. Collin and Irving counties in Texas are red but turning purple as of the last election. Jacksonville beach is still republican territory but also seeing a shift. Its safe to say if you are living in a heavily republican district don’t expect the Whole Foods effect to take place in your neighborhood in the coming future.
Oil hovered around $45 a barrel since we added it to our watch list of bullish commodities on December 29th. Today oil has increased approximately 10%. Bullish oil ETF’s that the individual investor has access to are up approximately 10%.
Oil ETF’s are a great play to take advantage of the drop in oil prices. Oil ETF’s provide a diversified exposure to the black commodity without having the worry of poor management from a single company. We have a 1-3 year timeline to see a 25-50% return on a well run bullish oil ETF.
Beaten down sectors like Gold, Silver, and Oil until 2020.
Candidate Donald Trump ridiculed the inconsistencies about US employment numbers and our bubble economy. AND HE WAS RIGHT!
President Donald Trump sings a different tune…
Isn’t it odd that President Trump rages on about bringing jobs back from over sees when we have an unemployment rate under 4%…? Who would fill these jobs?
Truth of the matter is that President Obama changed how unemployment statistics were calculated in 2009. Unemployment began counting any person that worked just a single hour as employed. Furthermore anyone that dropped out of the workforce was no longer counted as “unemployed”.
The mere notion that President Trump can say we have the best unemployment in US history is ridiculous. We have only been using the current employment calculation for the past ten years.
Candidate Trump was right about unemployment and the stock market in the video below. President Trump is carrying on the political charade when boasting about unemployment and the stock market.
US Dollar Index Since 1973
As seen from the chart above the US dollar index has been on a steady decline since 1973. In 2018 we failed to break through resistance at the 105 level and retracted to the mid 90’s. The fundamentals make this chart a more terrifying scenario.
FED Chairman Jerome Powell in mid 2018 stated that quantitative tightening and the raising of interest rates was going to be on autopilot. Essentially QT would extract US dollars from the market. The raising of interest rates would put a higher price tag on the USD. Both of these acts would raise USD value. The benefits being we as a nation could important more things-giving is more bang for our buck.
However, this scenario won’t play out because we as a nation can’t afford the rising interest rates. Our corporate debt and now $22T worth of federal debt can’t be serviced. We are at our peak capacity for interest rates. Any further rate hikes will strangle our economy and bring on a recession more quickly.
Housing, auto, and financials are all in bear markets. Manufacturing index hit an unexpected 54. Anything beneath a 50 is retraction.
Because we never de-levered corporate and federal debt- we don’t have tools left for the next recession. We are kicking the can down the road but found the wall. We can’t cut interest rates without going below zero. Well, we can, but the EU is seeing how that move has effected their economy. So what is the FED’s next move?
The next move from the FED is to sacrifice the dollar. We will quit Quantitative tightening. We could even see a rate cut in the FED funds rate. Last but not least we will resume Quantitative easing. Essentially printing more money to keep interest rates down in order to service or debt. We simply don’t have the option to pursue a stronger dollar. What should individual do?
Pursue US dollar sensitive commodities that are near a bottom such as gold, silver, and oil. Don’t buy the dip-buy the bottom.