Monday, August 14, 2017

Ray Dalio might be a bit late to the Gold party | Gold is in a Bull Market

"We have been in a bull market for almost two years, its just been so unrecognizable. I think Gold is about to break out on the upside strongly because of inflationary pressures.

One never knows when geopolitical risks will arise. One never knows when something untoward will happen economically. So yes, you should have some part of your portfolio in [gold]. I think you should have a tad bit more than 5 or 10% at this point. The stock market looks a little vulnerable. The geopolitical circumstances are getting worse and worse. So, I think that you probably need to bring that up to 10 to 15%, rather than 5 to 10.”

Wednesday, August 9, 2017

Iron and Steel could be a buy

"You had a bear market in Iron and the Steel market. But now, base metals across the board have turned to the better. I think that's from the better economic environment in the US and overseas in China.

I think you have to be impressed that Steel and Iron prices have been doing as well as they are. I would suspect that any sort of weakness, one should be a buyer. I think the trend in Steel, Iron Ore, and even shipping values are for the better."

Monday, August 7, 2017

Higher Crude Oil prices are coming

"Until about three weeks ago, I had been manifestly bearish of crude oil for a long period of time. Finally I have to tell myself, maybe higher prices lie ahead. Any weakness [should be bought].

OPEC is clearly worried about getting crude oil above $50 a barrel. They need to keep it above $50 and keep it there.

The big problem that OPEC is, Nigeria, Libya and Angola have been left out of the OPEC quota system. And both Nigeria and Libya have been extraordinary in increasing production to the dismay of the Emirates and Saudis. In their next meeting, they have to find some way to find Nigeria and Libya to be put back in the quota system. Whether Nigeria and Libya will allow themselves to be put back in the quota is another question. Can they do it? I don't know."

via bloomberg