Update for Dec 14th 2019

Markets are either oblivious, or choose to ignore, the very short term debt markets crisis (Repo crisis) now developing. There is also little financial press coverage. This is a red flag, and indicates that a significant problem exists. Keep an eye on this developing train wreck in the short term debt markets. If short term interest rates start spiking higher, we know the central banks are in real trouble. Perhaps in January the fireworks start. If they cannot keep the interest rates down, they will have lost control, and then the whole debt edifice starts falling apart at the seams, as bonds drop … and the dominoes start to fall globally. Gold should benefit in this scenario. The big bond holders are the central banks themselves! Can a central bank become insolvent? If so, what happens to the value of the currency it issues?

Main theme: Global developed market equities, continue to trend bullish into the end of 2019. Commodities continue to trend down to sideways, and difficult to trade. So best avoid commodities generally. The exception is the precious metals sector, which are in a bull market, despite the popular narrative that they are not. The sector consolidation should complete with tax loss selling this month.

From the Matrix below, BEAR and BULL sectors as follows:

BEAR MARKETS (exit and avoid):

1. Uranium, energy, commodities
2. Currencies: Euro, Aussie and Bitcoin
3. Equities: India, Vietnam, UAE

BULL MARKETS:

1. Currencies: US Dollar, Canadian Dollar and Sterling
2. Precious metals and the PM miners
3. USA bond markets and equities
4. Non-USA, developed markets equities
5. Select emerging markets such as Russia and Brazil

As the precious metals sector is the strongest of all the sectors, and the best in relative value terms, the focus remains LONG exposure in the precious metals and its miners (98% long exposure to the sector with 2% as cash); across 20 individual miner positions. Currently, 95% or 19 of the 20 positions are in profit, with one holding a small loss. All positions are on long term BUY signals and their trends are UP.

Editors note:

This Portfolio has documented results of 20% increase per annum over the last 3 years.

Not wild assed speculation …just slow methodical profits from sectors identified as bona fide Bull markets

Good Go Spock !

PS…for those who like a little wild assed speculation Spock has a matrix for you as well

Its included in the Spock Global Service

The Spock Miner Matrix ( Spocks Rocks) is full of Rocks and they are starting to get interesting again.

https://spockg.com/