Actionable Intelligence Alert with John Polomny

Kamala Harris issues her economic policy prescriptions: price controls, rent controls, and going after "price gouging" companies. How much can she implement? It's difficult to say as she will likely need congressional approval, and I am sure the courts will get involved. First, she needs to get elected.

Japan's central bank has informed the markets that it will not hike interest rates when the financial and capital markets are unstable. Japan needs to hike rates as the currency is weakening against the dollar.
However, if the carry trade is so big (estimated at $20 trillion) that a .25% rise in Japanese rates causes this much volatility, we potentially have major problems.
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The Japanese central bank raised interest rates for the second time this year. Markets tank as yen carry trade begins to unwind. The total value of the Yen carry trade could be as high as $20 trillion. I explain in basic terms what the carry trade is and the repercussions of it unwinding.

The overvaluation in US markets continues, yet there are excellent undervalued situations all over the world. I discuss some of these opportunities in this podcast.
 

Although gold stocks have lagged the recent move in the gold bullion price, primarily because the tech sector bubble is attracting all the attention, they are poised to play catchup. I explain why a $400 move in the gold price can translate into hundreds of millions of dollars of cash flow for a gold mining company.

With recent US employment data weakening and inflation continuing to moderate, the FED is poised to begin a rate-cutting cycle. During previous rate-cutting cycles, gold and gold mining stocks have moved materially higher. Gold is above $2400/oz and silver is above $30/oz. Smart money is positioning in these assets in anticipation of rate cuts.

Employment numbers continue to weaken as economic numbers soften. Is it time for the Fed to start its rate-cutting cycle? The FED is likely already behind the curve.

Resource markets are still massively undervalued compared to the general stock market and tech stocks in particular. The one caveat is that a general stock market downturn could be negative for even resource stocks. Let's be honest: 95% of stocks will go down in a stock market downturn. And resource stocks are still stocks. However, in the subsequent recovery, they will be first to recover and will likely outperform.

US Flash PMI came in positive this week. However, we also see the Citi economic surprise index weakening. This divergent economic news is likely going to cause the FED to pause and not cut rates. How can they cut rates with the market at near all-time highs, housing prices at all-time highs, and PMI's increasing?

In the last four years, we have seen eight double-digit declines in uranium (using URNM as a proxy). Yet overall the ETF has advanced multiples. How to use the inherent volatility of the resource markets to your advantage.