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March 6, 2020 | Will Central Bank Rate Drop Stop Market Plunge?

Bob Hoye has been in investment business for some 50 years, making him one of the more experienced researchers. His historical work has been thorough providing the first recognition of the fascinating transition from speculation in commodities to speculation in financial assets. It was controversial when Bob observed that “No matter how much the Fed prints, stocks will outperform commodities”. In January 2000, the research team concluded that the Dot-Com Bubble would peak in March 2000. In early 2007, the team outlined that the credit markets would reverse in May-June 2007. They did and the stock market followed. The latest was the call in early October for the Bitcoin Bubble to complete in December. Bob’s essays and speeches on political change and on actual climate change have been widely circulated.

Listener questions about Gold and Treasury Bills answered

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Archives March 6th, 2020

Posted In: HoweStreet.com Radio

3 Comments

  • Avatar Mike from Burbank, Ca. says:

    A question fort Bob. Why is the US dollar being aggressively sold while at the same time there is a flight to safety into US treasuries? This seems counter-intuitive. Also, will we see the S&P at 2000 again? Judging from the rate of the current market decline, the S&P descending to 2000 seems like “just a stone’s throw away”.

  • Avatar Chris says:

    Hello Bob. Thank you for sharing all your work with us. Your depth of understanding is remarkable.

    My question relates to the current market climate. I’ve noticed that bond prices may have reached their bull market peak with a rare DSI of 98. Also, that liquidity must be extremely tight based on unbelievable repo activity. Seems to me that ALL bonds prices – even short term bond prices – have only one direction they can go, which is down. Are we on the cusp of the interest rate shock that you allude because of forced selling of highly liquid bonds ? Also, could a global bond revulsion actually cause a global capital flight to US dollar-based equities now the Mr Margin has wrung out some leverage in the last three weeks or is no place safe except cash, gold and eventually gold stocks ? Thanks you, Chris

  • Avatar cecil says:

    Question for Bob: With the GDX below 20, which is below its 200 day average, do you think a bottom is near in the mining stocks or is there a long way to go??

    Do you have any targets for the GDX and S&P long term bottom?

    Should people just step away from the markets for a few months?

    Thanks

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