A Comment -- General Comments From an Expert (A Commentary)

Effect of cryptocurrencies on small businesses? They're way over-hyped. Huge speculative binge. Used by the black market. Blockchain technology behind it is, however, very interesting.

What will it take to stop the bleeding? So many things driving the market. Tech drove the US market more than Canada last year. This is the danger of momentum money. What's been working for the last 5 years could stop working if the quant machines start working against stocks. There are some great opportunities out there with hidden value, but you can't just look at a stock chart.

Market. Market volatility is here for a while. No amount of central bank easing is going to stop this. Wall street is used to the wall street cushion they call the 'Fed Put'. The big deal is how to deal with the economic shock from Corona Virus. To him, this is an end of cycle and the recession will play out. He thinks the path to Bernie Sanders being president is way more likely than the market is pricing in.

ETF for Global Market Giants. There is not exactly that but there is similar. TXF is probably not currency hedged but covers 25 of the TECH giants in the world, with a covered call overlay. You want to participate in large cap tech on a diversified basis. You could by QQQ-T to track the NASDAQ.

Educational Segment. The US Election – Bernie. Trump and Sanders are the same candidate to Larry. Trump went after the idea that it was the immigrants' fault and foreign trade. Sanders is saying that it's Wall Street's fault and corporate greed. They are both asking for the same vote.

Markets. [Brian Cook and Joe Mazumdar guests] They are seeing a lot more money coming into the mining sector but it is very selective. The juniors need a higher gold price. Less people are interested in the juniors right now. They are now seeing solid projects that are oversubscribed. ABX-T is promoting their working with juniors. Larger mining companies recognize that their own production profile is dropping off.

Silver. Silver is a gold bug on meth. Some companies with a high exposure to silver sometimes see a premium. 50% of the demand is industrial, rather than speculative.

Gold's sell-off Friday, why? Some players with margin debt were speculating in gold, or had gold among other assets in leveraged portfolios. When margins calls hit, the sell decision is often made by the credit officer or margin clerk, not the investor. Also, gold is EXTREMELY liquid. Together, this encourages selling. He expects gold to do well if volatility is high--people buy gold out of fear. Also, gold reacts to people's faith in the purchasing power of the US dollar as expressed in the US 10-year treasury which already returns less than inflation.

Market Outlook The market was getting frothy heading into the Coronavirus outbreak. At that time any negative news made the market ripe for correction as it was priced for perfection. As the virus continues to spread, it is creating an outlook the global economy may be shut down for 3-6 months. He can't see now how anyone would have a positive opinion on earnings this year, so this is not unexpected. The Fed Reserve eased three time last year and now a 50 point basis cut is expected by the market over the next couple of quarters. As painful as this feels this week, they have been preparing for pullback and now they are taking advantage of the oversold nature of the market and are back in buying. Gold is expected to pullback to $1580 and if it holds at this Fibonacci level, he thinks that will be bullish for the commodity. This is a great buying opportunity for gold right now.

Market in long term correction? This market move is very different in that a Tweet is not going to solve this. What gets hurt in the market first are the very expensive shares -- trading at high multiples. Going to bonds is not a great strategy right now as inflation outstrips the yields on long term bonds -- you would be guaranteed to lose money. Fixed income is now screaming at capitulation (more risk of falling than continuing to rise).

Real Estate? As interest rates are low, this is very positive for real estate. He thinks REITs are a good investment right now.

The market during the day saw lots of volatility, it went down in the morning. When the Fed's said it was stepping in, the markets recovered losses before the closing.

Looking at the 10 year yield, there is a possibility that yield can stay low. The bottom floor was busted, so there is more possible movement in that direction.

Market. Last week was surreal because we were not pricing in anything and it was surreal that we weren't pricing it in and now it seems it is way too much. You have to buy the dips and here we are. This will pass. The central banks have been very quiet here. They will want to see maximum pessimism and then there will be a coordinated move. 92% of people even if they get CO-Vid19 will be okay. Older people with respiratory issues are exceptions. He thinks CO-Vid-19 will result in clusters in the US. This is a very tradeable event. Buy half of your desired position and then laser buy the rest.

Which big oil do you like best? XOM-T is going to book value. He would buy some here. He thinks it will go to $47 and he would be a buyer here.