August Volatility Continues as Gold Surpasses $1,500

Excerpt from Louis Navellier's Marketmail - 8/13/2019

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With over 85% of companies in the S&P 500 having announced their latest quarterly results, annual sales growth is running at a +5.2% annual pace, while 74% have beaten consensus earnings estimates.

Last week was certainty action-packed due to the escalating trade spat with China. I’ll have more to say about this later on, but here is a link to my podcast explaining the repercussions of this latest trade tiff.

Despite last week’s gyrations, the foundation under the stock market remains very strong, since the 10-year Treasury bond yield, at 1.734% (after an intraday low of 1.614%) remains substantially below the S&P 500’s annual dividend yield. As I have often said, when the S&P 500 yields more than the 10-year Treasury bond, which has only happened 8 times in the past decade, the stock market is a screaming buy!

In This Issue:

Bryan Perry explains how the competing currency devaluations in China, Europe, and the U.S. are pushing gold prices back to $1,500. Gary Alexander recounts the violent August market storms of recent pre-election years (2007, 2011 and 2015), with 2019 off to a similar start. Ivan Martchev is concerned about how long the “comrades” in Beijing can keep their economy afloat through artificial means, and what a big China collapse might mean to the global economy. Jason Bodner predicted this correction and now he is looking at sectors that might lead us back to new highs in the recovery. Then I’ll return to explain why I think China will blink first in this trade war, and why inflation remains no threat as interest rates decline.

Income Mail: What’s the Story Behind Gold’s Recent Rise?

By Bryan Perry

It May Not Be a “Fool’s Gold” Rally This Time Around

Growth Mail: Beware of August Markets in Pre-Election Years

By Gary Alexander

A Record “Low-Pressure System” Hit the Markets in August 2015

Global Mail: The Comrades’ Time is Running Out

By Ivan Martchev

Capitalist Economies Have Economic Cycles

Sector Spotlight: When Markets are Manic-Depressive, what is the Trend?

By Jason Bodner

Investors Want Out of Energy!

A Look Ahead: We Need Patience in the China Trade War, Since the U.S. Holds the Upper Hand

By Louis Navellier

Inflation is Down and Interest Rates are Falling Fast