Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

Part 2: The Inevitable Crash (by Wim Grommen)

By -

Here’s Part 1 from yesterday.

Splitting shares fuels price-earnings ratio

The increase in the price-earnings ratio is amplified because many companies decide to split their shares during the acceleration phase of their existence. A stock split is required if the market value of a share has grown too large, rendering the marketability insufficient. A split increases the value of the shares because there are more potential investors when they are cheaper. Between 1920 – 1930 and 1990 – 2000 there have been huge amount of stock splits that impacted the price-earnings ratio positively. (more…)

The Great Escape

By -

Given gold’s grinding bear market (September 6, 2011 through December 17, 2015, a period of over four years) , it’s not surprising that investors don’t trust the strength that gold found over the past couple of months. After all, there have been plenty of counter-trend rallies over that long, grinding drop.

My view, however, is that the February16th breakout above the channel I’ve drawn made a lasting directional change. The monster surge we saw last week had to be digested somewhat (such as yesterday), but I truly think we’re in a new bull market for gold, and the fake-out moves are going to be in the downward direction, as opposed to upward.

0217-gld