Gold and Silver gains since Dec. 1st 2018

Commodity Time…?

Australian stock market versus US stock market ratio…

Gold and now silver confirming…

CBDS Health and GrowBuddy – Cannabis Data Capture and Analytics from Seed to Pharmaceutical.

Nexvu Capital offers a new opportunity to invest in CBDS Health and GrowBuddy – an integrated Internet of Things (IoT) solution for cannabis data capture and analytics from seed to pharmaceutical.

CBDS Health and GrowBuddy offer an integrated Internet of Things (IoT) solution for cannabis data capture and analytics from seed to pharmaceutical.

Overview

 

 

 

 

 

 

 

 

 

 

 

 

 

Prime Meridian Resources Corp.

Nexvu Capital offers a new opportunity to invest in Prime Meridian Resources Corp. (PMR:TSXV) which is investing capital into production opportunities supported by good infrastructure in historical mining regions.

Overview of Prime Meridian Resources Corp.

PMR Overview

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Industrial Electricity Usage and Stock Returns

Tracking simple electricity usage is a helpful predictor in discerning broader market movements, according to a paper released this month by a team at the University of Notre Dame.

“Simple year-over-year industrial electricity usage growth rate has strong and significant predictive power for future stock market excess returns in horizons ranging from one month up to one year,” wrote the team led by Zhi Da and including Dayong Huang and Hayong Yun.

What they found specifically, when looking over data from 1956 to 2010 in the U.S., Japan and U.K., is that each 1 percent increase in electricity usage corresponds to a 0.92 percent decline across broad stock market measures over the next year.

Electricity usage predicts stock direction: Paper

Small Caps and Micro Caps

Further to our previous comments…the evidence…as the TSXV makes a run for a 4 month high and potential breakout from the bottom along with a new one-year high for the Russell 2000. The TSXV needs to tackle the old low resistance in the 750-825 range potentially falling back to what should be support at 700 if this takes longer to unfold. A break above 825 in the TSXV will be the beginning of the bull market in the Canadian Micro-caps. This will require out-performance by the Canadian dollar which looks to have bottomed v USD at the historic 10Yr support of $0.80. Firming energy prices (we are a petro-currency) are causing a breakout from the $0.80 range.

Market Psychology and the TSX Venture Exchange

We see some similarity in the following…and suggest we are moving from ‘Depression’ to ‘Disbelief’ on the TSX Venture Exchange Index.

5-Year TSX Venture Chart v. Psychology of a Market Cycle

OIL PRICE MOVEMENTS AND THE GLOBAL ECONOMY

We have attached two NBER papers that address the effects of oil price movements on the Global Economy:

THE EFFECTS OF OIL PRICE CHANGES ON THE INDUSTRY-LEVEL PRODUCTION

In this paper, we decompose oil price changes into their component parts following Kilian (2009) and estimate the dynamic effects of each component on industry-level production and prices in the U.S. and Japan using identified VAR models. The way oil price changes affect each industry depends on what kind of underlying shock drives oil price changes as well as on industry characteristics. Unexpected disruptions of oil supply act mainly as negative supply shocks for oil-intensive industries and act mainly as negative demand shocks for less oil-intensive industries. For most industries in the U.S., shocks to the global demand for all industrial commodities act mainly as positive demand shocks, and demand shocks that are specific to the global oil market act mainly as negative supply shocks. In Japan, the oil-specific demand shocks as well as the global demand shocks act mainly as positive demand shocks for many industries.

OIL PRICE MOVEMENTS AND THE GLOBAL ECONOMY

We develop a five-region version (Canada, a group of oil exporting countries, the United States, emerging Asia and Japan plus the euro area) of the Global Economy Model (GEM) encompassing production and trade of crude oil, and use it to study the international transmission mechanism of shocks that drive oil prices. In the presence of real adjustment costs that reduce the short- and medium-term responses of oil supply and demand, our simulations can account for large endogenous variations of oil prices with large effects on the terms of trade of oil-exporting versus oil-importing countries (in particular, emerging Asia), and result in significant wealth transfers between regions. This is especially true when we consider a sustained increase in productivity growth or a shift in production technology towards more capital- (and hence oil-) intensive goods in regions such as emerging Asia. In addition, we study the implications of higher taxes on gasoline that are used to reduce taxes on labor income, showing that such a policy could increase world productive capacity while being consistent with a reduction in oil consumption.

Source: NBER

Goldman Sachs Report on the Internet of Things

The Internet of Things: Making sense of the next mega-trend

The third wave of the Internet may be the biggest one yet!

Source: Goldman Sachs

Rotation within the Cycle continues as the Miners outperform

The Miner’s have outperformed in recent weeks as reflected in the performance of the Nasdaq 100 Index versus the Metals and Mining Index over that time period: