Tuesday Brief: Five Things Traders Need to Know for Today

Quote of the Day

“As Buffett has often observed, value investing is not a concept that can be learned and gradually applied over time. It is either absorbed and adopted at once, or it is never truly learned.”

– Seth Klarman

5 Things You Need to Know Today

Junk Bonds Are Getting Junkier. Credit spreads are widening. Investors’ belts-are-a-tightening. The correction could be frightening!

Gold Prices Are Enlightening. Given the Fed’s interest rate hike next week, Gold should be dropping. But gold is still popping (on some days). Rumor has it (Hello, Adele) that China’s been shopping (for the buttery metal).

A Huge Mining Company Slashes Its Workforce. Well, it’s not killing its workforce with knives and stuff. That would be gross. But Anglo-American laying off 85,000 people. The commodities crash is having huge worldwide repercussions. It’s hard to imagine a big recovery for gold, or any precious metal, until 2017 or later.

With So Much Uncertainty, You Need More Confidence. When times are tough, a lot of traders bail on their good positions way too early. They jump out of winners because they’re afraid. They walk away from great trades because they’re just not sure enough.

Will the Yen Be #1 in 2016? This is the time of year when investment banks make their ridiculous forecasts. Word on the Street is that the USD/JPY is going to drop. I couldn’t agree more, but I’ve got to see some downward action first.

Chart of the Day

I’m long SJB. This ETF goes up when junk bonds lose value. I really love this trade.

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