2nd Quarter Equity Report

“Judge things by how statistically likely they are, not how they appear.” ~James Montier

By Catherine Austin Fitts

This week, I will be speaking with Chuck Gibson of Financial Perspectives.

First, we will review events and performance in the global equity markets for the second quarter. The strength of the equity markets into July has continued to surprise investors, even inspiring Fed Chairman Yellen to describe valuations in some market sectors as “substantially stretched.”

Then, Chuck has a technical analysis on “finding bottoms.” While US equities have been strong, other parts of the equity markets have been weaker and commodities have been in a consolidation pattern.  Buying equities at market highs has historically not been a strategy for attractive long term gains. When investors find themselves facing all time highs in one market, how do you identify when it is time to take advantage of markets that have been consolidating or are low? How do you identify a so-called market bottom? How do you know when to shift?

Chuck has prepared a presentation using precious metals as an his example. A discussion of relative values in the two markets will be good background for our discussion with Franklin Sanders on the Precious Metals Market Report in August – August and early September are a traditionally low season for gold.

In Let’s Go to the Movies, I will review George Clooney’s latest movie The Monuments Men and what it tells us about the spoils of war. Stories of war time looting, seizures and the various economic spoils of war are on our minds these days as a new round of economic sanctions trigger asset transfers and resulting winners and losers.

Talk to you Thursday!