Kerry Lutz's--Financial Survival Network

It's no secret that stock markets are at already unsustainable levels and getting more so every day. This has led otherwise intelligent people to question whether standard security valuation tools are still relevant. When prices are rapidly increasing it's easy to believe that valuations don't matter. However, at such time when the market inevitably corrects, Danielle's belief (and mine too) is that valuations really do matter and in fact one many so-called investors are going to realize it as well. 

James Hirsen highlights Hollywood's sexual abuse problems in his recent column. James Franco has become the latest target of allegations from no fewer than five women. Worst of all he's in contention for an Oscar after receiving a Golden Globe Award. How will they handle it? It's a real dilemma for them. Add to that declining movie ticket sales and the implosion of the Brand after the Harvey Weinstein eruption and they've got a major mess on their hands. And according to James, Oprah has got a lot of issues of her own, so don't expect to see her on the presidential debate stage anytime soon. 

David Morgan, one of the thought leaders in our community, joined us for a look ahead at 2018 for precious metals. David's got a company that pulls precious metals out of scrap and is poised to cash in. There's more gold in a ton of scrap iPhones than you find in many mines. 2017 showed strength in gold, not so much in silver. David wouldn't be surprised to see a high of $21 or more for silver in 2018. Peak years coming in 2020. Palladium was a major hit for the year going up 55%. Copper was up 30 percent and other base metals went even higher. And we're probably just getting started in the next upswing. 

Somewhere out there is an event or major trend change that will take gold from 1300 to 10000. Then the COT (commitment of traders report) won't matter. You don't want to go all in on a minor technical move that causes you to miss the big move. If you miss it you'll feel stupid for the rest of your life. That's why it's so important to retain your physical holdings as an insurance policy for the inevitable move. 

During the election in 2015 Hillary Clinton wanted some insurance and so did Peter Strzok. The senior FBI figure, who had participated in the Hillary e-mail investigation, interviewed Flynn and had been part of Team Mueller, wasn't looking to State Farm for his insurance needs. Chatting with his mistress, an FBI lawyer who worked for Deputy FBI Director Andrew McCabe, Strzok worried that Trump might win. “I want to believe the path you threw out for consideration in Andy’s office - that there’s no way [Trump] gets elected - but I’m afraid we can’t take that risk,” he wrote. “It’s like an insurance policy in the unlikely event you die before you’re 40.” And thus the scheme was hatched. It went on after the election and its purpose was to undermine President Trump's presidency. 

The economy is starting to blaze. Christmas retail sales were way up, but that increase came from online, not same stores. Home oriented retailers and value based retailers are expanding rapidly. Discounters are crushing it. But there's a residue of many employees who will be phased out by automation. And 10's of thousands of stores that will be shuttered. The industry restructuring will proceed ahead for the next decade. We'll be left with just a portion of the labor market left in retailing. Retraining will only go so far. This is just the beginning. Household names will disappear. There will be a mass redeployment away from retailing and into more profitable and productive sectors of the economy. 

To Gordon T. Long it's a simple matter, things are changing quickly and there's a New New World Order emerging. With the rapid takeover of previously human based industry by artificial intelligence and robotics, how many of today's workers will be needed in the future? Where will the new jobs come from? These are issues that every government will have to deal with in the coming years. Change is coming quickly and the world will have to adapt, but how? 

Al Caceido is urging caution in investing for the year ahead. We just came off an incredible year with the DOW gaining 25%. 2018 could be a more challenging environment. Will the tax cut achieve its desired ends? Will there be currency and trade issues that work against our economy? There's a lot of unknowns that could cause substantial losses so it might not be a bad idea to take some profits now. 

Nick Santiago has had a remarkable 11 year run. He called the peak of the stock market in October 11, 2007, to the day. He wasn't quite so prescient on calling the start of the current bull market, he was five days off. But as Yogi Berra said, prediction is very difficult, especially when you're dealing with the future. Nick's had an amazing run and some of his calls for the coming year might surprise you. But he believes the next crash is still a ways off, so you can rest easy--at least for now. 

Jason joined us today. Just 2 days before the 2018 Meet the Masters of Income Property. Former Congressman Ron Paul will be leading an all star list of guests. Just click here to register now! You'll learn about Jason's latest predictions about the economy, demographics, real estate and much more. A prediction he made in 2011 has come alarmingly true. Jason said the number of renters would increase by 6 million. In fact, the number is far higher. He's now predicting that upper middle class professionals will be dumping their homes in high tax states and renting high end homes. Let's see what happens next. 

Three reasons why Gold will go up. 

1) Gold should have gone down in 2017. 

2) The everything bubble is coming to an end. 

3) The technical picture shows gold coiling for a big breakout!

Soaring stock markets, with all major US markets making numerous new highs throughout the year...

• Raging bitcoin and crypto prices, captivating investors worldwide and dominating headlines, with numerous stories of investors getting rich.

• Rising real estate values, with some areas reporting frothy prices.

• Rising US interest rates, with promises of more from the Fed.

• Higher GDP in the US and many other economies around the world.

• Falling unemployment in the US.

• Higher wages, with the passage of a tax bill that spurred many companies to offer bonuses and wage increases.

• And last, falling gold bullion sales, so soft they reached a 10-year low.

• The VIX (Volatility Index, a general measure of fear in the marketplace) has registered a reading below 10 a total of 54 days in the last 20 years—and 46 of those abnormally low readings have occurred just since last May! The reversal to the upside could be stunning—and push investors into gold.

• The CAPE (Cyclically Adjusted Price-Earnings) ratio has now matched its 1999 level, the second highest reading in over 100 years of data. And you remember what happened in the years following that bloated stock market level. The CAPE has now registered a higher reading only in 1929. Yikes.

When will gold begin its surge? 

It's impossible to pinpoint the day, but we know when:

 Gold will respond when uncertainty and fear creep back into the economy or markets.

Or any other surprise that catches investors off guard. The next event that causes financial instability will likely be the spark that pushes gold out of its current range and kick-starts the next surge. 

Chris is at heart a cycle guy. He sees a rally coming in the US Dollar for the next couple of months, along with a pause in precious metals. He believes that the second half will be the time that gold, etc., breaks out. Volatility is increasing in equities and commodities. Bigger up days and bigger down days until the momentum reverses in the various markets. We're coming to an end in the stock bull market, but they're still extremely strong. Stocks could have reversed in 2016, however, Trump literally saved the market from a major decline. Trumphoria is still alive and well. There's just no fear in the market. Such stages could extend much further than anyone believes possible. Chris believes the Utility Sector is oversold and out of favor right now. They could be a very good buy. 

Trevor Loudon says that if Hillary Clinton was elected there would be no freedom movement in Iran. While right now it appears that the movement has taken a rest, Trevor believes that it will be back before long, in spades. Trump has emboldened freedom warriors around the globe. Perhaps Venezuela and Cuba will be next. We can only hope!

Everything is going wrong in California. The once Golden State is now the Leaden State. It's a sanctuary state that welcomes aspiring gang members from all over the world. They love illegal aliens and can't get enough of them to help come in and loot the state. Add to that unfavorable business laws, crazy workers comp and some of the highest taxes on the books. 

With SCOTUS resuming session and the focus on Gorsuch, you may be interested to know that veteran biographer John Greenya has just released a new biography -- GORSUCH: THE JUDGE WHO SPEAKS FOR HIMSELF —the first-ever biography about Justice Neil Gorsuch, a man who remains a mystery to Democrats and Republicans alike.

Greenya knew Gorsuch's mother and in GORSUCH, he supplies a comprehensive and fascinating examination of the youngest judge to be nominated to the Supreme Court in twenty-five years, answering questions like:

· How does Gorsuch compare to his legendary predecessor, Justice Antonin Scalia?
· What are some unique characteristics or ideologies Gorsuch brings to the bench?
· What can we likely expect from Gorsuch in the years to come?
· Why did President Donald Trump choose Neil Gorsuch over all others considered?

According to John R we are in uncharted territory so far as the stock markets' valuations are concerned anyway. We've seen financial assets and real estate go way, way up. Now we are starting to see prices going up in energy and perhaps the rest of the commodity sector. This will invariably lead to higher consumer prices. And perhaps most importantly, interest rates are going up. We thought the yield curve would flatten, but now it seems to be steepening. Mortgage rates are back over 4%, first time in years. Rising rates mean more bank lending. Is this time going to follow the standard script? 

in 2017 new oil discoveries hit an all time low. Prices are up over $60 the barrel and they could go a lot higher. Chris believes that there's just not enough in the pipeline to satisfy world demand. Same with many other things that society demands. There are limits to our ability to produce in many areas. Challenges are ahead and if there's another crash, all bets are off. 

Harlan Ullman joined us again for a talk about what the US should be doing about Iran and North Korea. Harlan believes we need to keep hands off in Iran and let things unfold, hopefully for the better. With North Korea there appears to be an opening for diplomacy. The US has to give up the idea that they will abandon their nuclear program and hope for containment. Will it be enough? 

We checked in with the former congressman to get an update on 2017 and to get his outlook for 2018. Trump seems to be out of favor with the public, but his agenda seems to be highly favored by the public. The 2018 midterms are a wild card. Democrats seem more motivated than Republicans, but we'll have to see what happens. The Dems need 24 seats to take over. There's numerous Republican retirements. Let's see if the passion can bring them over the top. Maybe the tax bill will be the key. 

It's no secret that equities prices are off the chart. They appear to be at their second highest levels ever. How much longer can the madness go on for? Until it reverts back to mean. When that will happen is an open question. I guess we'll know it when we see it. But stocks have been going up for more than 9 years now. Is this time really going to be different? Danielle suspects not. 

Gold has broken the $1300 resistance point. How much higher will it go? We've been at this point several time, however, this could be the one that propels gold much higher. The cycles guys have been saying it for a while. But it might just be a seasonal bounce. The key is if it breaks last year's monthly high of $1350. In other news, debt continues to climb higher around the globe and military tensions are heating up. Need any more explanations?  

Look what's happening around the world. Iran and Venezuela look like they're getting ready to collapse. Can Cuba be far behind? North Korea could be approaching the end as well. 2018 looks like a great year economically speaking. Higher dollar as a result of increased overseas investment and interest rate hikes. It's very likely we'll see inflation begin to pick steam as well. You'll know at Thanksgiving.

Gold broke $1300 and silver broke $17. Now that's change we can all believe in. Bitcoin hit nearly $20k and pulled back. It's future is bright but that doesn't mean its not a bubble. People have got to get their dopamine from whatever source. What's better, narcotics or Bitcoin Bubbles? You decide. 

We're loving what's happening so far. Watch out for quakes and legal pot in Cali. Happy New Year to all!