Today John Embry, who is Chief Investment Strategist of Sprott Asset Management, spoke with King World News about the shockingly tight physical gold market. He also discussed Europe, the United States, stocks and silver. Here is what he had to say:
“The US stock market has been levitating over 13,000 for a bit, and I was struck by an article in the NY Times which featured Jack Bogle, who started Vanguard Funds. Jack said, ‘It’s urgent that people wake up because this is the worst time for investors that he’s ever seen, and he’s been in the business for more than 60 years.”
“When you put what he said together with the fact that the VIX is at the lowest level since 2007, they contradict each other. But I would be inclined to go with Bogle. It’s my firm belief that the stock market is being supported by the PPT (Plunge Protection Team).
Right now I think the market is extraordinarily vulnerable to the realities of what’s going on in the world....
“Jack also pointed out you have to stick with your stocks because the alternatives are so bad in terms of the black swans. I totally agree with him on that.”
Embry had this to say regarding Europe: “Merkel is back from holiday and they are discussing whether Germany is going to back all of the necessary money for these Southern peripherals.
What’s fascinating is Italy’s debt load is moving to the front headlines because their debt is roughly $2 trillion. But what strikes me is the rapid acceleration that’s been going on in the Italian debt. In the last nine months, their debt has been growing at $10 billion per month. This is a dramatic acceleration in debt.
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Have a good one!
Regarding www.skoptionstrading.com. Yesterday we closed another profitable trade, a play that was a tad more sophisticated then our usual trading methodology as it was predicated on the reduction of volatility. Although the profit was small, 6.46%, we had allocated 15% of our funds to this trade which was three times higher than our more normal 5% allocation. The statistics will be updated shortly.
Our trading success rate is 91.00%
91 profitable trades out of 100.
Our model portfolio is up 455.14% since inception
An annualized return of 81.15%
Our annual performance figures are as follows:
2009 We made a profit of 23.89%
2010 We made a profit of 158.66%
2011 We made a profit of 40.95%
In 2011 we outperformed:
S&P by 42%
HUI by 53%
Gold by 31%
Silver by 41%
The 2011 Annual Report by be accessed via this link.
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