WEEKLY WRAP-UP: Economy & Markets

Economy & Markets Chris CimorelliBy Chris Cimorelli

It’s been a fun ride, but after this week I’m turnrning this dispatch over to the newest member of the Dent editorial team, Robert Johnson. I mentioned in my P.S. last week that I was flying to Baltimore to meet a new team member. Well, that was why.

Robert is our new Editorial Director at Dent Research. He comes to us with an MA in Journrnalism from NYU and a diverse background as a U.S. Army veteran… a former Editor at Business Insider… and most previously as a photojournrnalist & Senior Correspondent for Wall Street startup Pixable.com (if he’s nice, he might even share a few photos).

I’m not going anywhere, I’ll just be working in a different capacity in the editorial department. But you’re in good hands with Robert.

That said, if you’re ever in Delray Beach, pop into the office and say hello…

Ok… so did you see that email Harry sent on Tuesday? The one about the $250 million condo on Manhattan’s billionaire’s row?

Mind you, the condo is merely under application to go for that much… but is that crazy or what?

Several new tall, skinny towers will pop up along the southernrn side of Central Park over the next few years. They’re mostly residential buildings – as if Manhattan needed any more expensive condos – that will likely make the broader housing market there even pricier.

As of now, a 750 square-foot condo rents for about $3,000 a month!

But this one particular condo – the $250 million penthouse at 220 Central Park South – will span four stories, with 16 bedrooms, 17 bathrooms, and five balconies… all at 23,000 square feet.


Sounds like a bubble ready to pop…

Rodney’s email to you this week was just as shocking.

During the financial crisis, the University of Texas Investment Management Co (UTIMCO) built a huge gold position – 6,643 ounces.

But instead of holding their gold in New York like everyone else does, Texas officials took delivery of it. To store it, they’re in the process of building their own gold depository.

This is unprecedented… but it makes sense.

The idea behind holding physical gold is to have it on hand in case of financial calamity. That’s hard when your gold is 2,000 miles away in another state.

But here’s the really interesting part. As Rodney said: “The state legislature authorized a bullion depository that can receive and send fund transfers.” That makes the depository more like a bank… and not just any bank… one with deposits backed by gold.

Out of nowhere, Texas is setting up a high profile alternrnative to today’s banking system as we know it… the one in which money isn’t really backed by anything.

If I’ve learnrned anything this election cycle, it’s that Americans don’t really trust being in power.

So it’s no surprise that something like this is happening in Texas.

Speaking of the election… have you seen our latest infographic?

You might remember an email Harry sent a month or two ago, saying that the democrats are likely to retain control of the White House through about the year 2036. The economic cycles Harry uses to predict boom and bust patternrns favor the democrats winning.

That said, he had one important caveat to that equation.

If the economy gets worse into November, it would highly favor the outsider candidates that have hijacked their respective parties.

Remember that abysmal jobs report that happened a week ago? The one where the economy added just 38,000 jobs, the lowest in six years?

One bad report does not a recession make… but we should be very wary of any disappointing news. As Harry said, it will only feed into Trump’s message.

So, while economic forces largely favor a democrat winning the White House… this infographic lists seven reasons why Trump could become the next president.

Just think – the chances of the Fed hiking rates in a few days has dropped to 0% according to some sources. That means it doesn’t think the economy is strong enough to favor a rate hike. Lance covered this in Economy & Markets on Friday.

Lastly, another shout out to Adam. Recently he closed his highest winning trade ever in Cycle 9 Alert. Back in February he recommended buying call options on Pan American Silver Corp. (NYSE: PAAS), and after selling the first half for 75%… he closed out the second for 336%.

Then, this past week, he closed out another high-winning trade for 105%. On a net basis, that’s two triple-digit winners in a row! Click here to see how he does it.

Adam also delivered an important message in Monday’s 5 Day Forecast for Boom & Bust readers.

Last week, 340 stocks on the New York Stock Exchange made a new high. Perhaps this signals some last-minute investors buying at the top, or maybe it’s a catalyst for a new high in the overall market. But either way, in the near-term, this means momentum is on the side of bullish investors. Adam will alert you if that trend changes.

If you’d like to receive 5 Day Forecast – where Adam and Charles take a close look at what’s happened in the markets over the past week, offering unique insight based on their methodologies –

Hopefully I’ll see some of you at our Irrational Economic Summit in October. We just added a new speaker to the list of presenters. I don’t know if I’m supposed to mention this yet – it’s pretty recent – but his name is Dan Mitchell of the CATO Institute, and he’ll be sharing his thoughts on the election, and what it could mean for the economy and your portfolio. That’s in addition to some of the high-profile speakers already on the roster.

That’s all from me. You’ll hear from Robert next Saturday.


Chris Signature





Chris Cimorelli

Managing Editor, Dent Research