pete11, you've been around these markets for a long time. With...

pete11, you've been around these markets for a long time. With the HUI down 4.78%, the GDX down 3.81%, the GDXJ down 3.52%, and US$ gold price down 2.42% what do you think the price of NST will open at on Monday? The trend for gold is down, the trend for bond yields is strongly up, risk assets are starting to be sold, so the USD dollar has caught a slight tailwind as people start looking for exits. As mentioned in my last post, US treasuries are not really any different to the US dollar. When people sell a US 10 year treasury note today (sending yields up) and exchange those treasuries for US dollars they are essentially saying that a US dollar today is worth more than the net present value of a US dollar in 10 years time, even after you factor in the yield. That means the bond market today has a negative out look for the USD over the next 10 years so the long/medium term expectation in the eyes of bond traders is for the USD to fall.

We now also have a situation again where the yield on the S&P 500 is less than the yield on US Treasuries. Now given this fact, what would the average investor rather rely on? The yields over the next 10 years promised by bubble stocks like Telsa, a car maker that in 2020 sold 499,550 cars out of global car sales of 56,000,700 (or <1% of global car sales) or the US government with the power to tax its citizens and with the largest military in the world. Elon Musk became the richest person in the world in January when his company made only $721 million in profit on revenue of $31.5 billion. That's a net profit margin of 2.28%. NST which I have called a bubble stock for a few years now claimed in its last quarterly a net profit margin of 16.6% (more than 7 times that of Telsa). If Tesla was a gold stock it would be treated as a pariah with margins like those. Tesla is a very low margin, very low volume car maker about to face mountains of worldwide competition but the US bubble markets have elevated it to the 7th most valuable US stock by market capitalisation.That should be enough to tell people everything they need to know about the strength of US markets and where they will be headed in the decade ahead. Unfortunately the market like many other facets of our societies at the moment can't handle the truth.Esh