Buy Gold – Inflation is Coming Back

I’m sure the mere mention of inflation will draw a vitriol response from some econo-watchers, but believe it or not, early signs of a pickup in pricing are turning up. I first noted an uptick in inflation shown in the Core Consumer Price Index for February and talked about the benefit to gold in Gold - Hello Inflation My Old Friend. I said I would watch inflation for gold investors, and I have since seen two more early inflation signs. Inflation seems to be emerging and there should be serious benefit to gold if it does and as the market becomes aware of it. See the gold report here.

Precious Metals Securities	03-31-15 2:20 PM ET
SPDR Gold Trust (NYSE: GLD)	-0.2%
iShares Silver Trust (NYSE: SLV)	-0.3%
Market Vectors Gold Miners (NYSE: GDX)	-0.9%
Market Vectors Junior Gold Miners (NYSE: GDXJ)	-0.7%
Direxion Daily Gold Miners Bull 3X (NYSE: NUGT)	-4.0%
Direxion Daily Gold Miners Bear 3X (NYSE: DUST)	+2.4%
Goldcorp (NYSE: GG)	-0.7%
Newmont Mining (NYSE: NEM)	-0.9%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Bank of America (BAC) Q1 EPS Preview

Bank of America (NYSE: BAC) shares have languished since the Federal Reserve’s dovish monetary policy statement release, which was a letdown to banks hoping for near-term margin expansion. BAC didn’t perform all too well before that either, weighed down by the Fed’s stress test results, which produced a qualified approval for Bank of America’s capital plans. But I suspect something else has been burdening the shares more recently and could make BAC shares irresistible soon. Bank of America disappointed investors when it last reported earnings in January. As a result, there is likely fear afoot today about the upcoming Q1 results, which should be reported on or around April 15. But the risk seems to me to have been built into the shares at this point, considering the positives that lay ahead for BAC. There is also the potential for an upside surprise when the company reports its earnings, which has not been considered by BAC bidders yet. The stock is approaching irresistible value in my view and should be accumulated into and after the report, even if it declines further. See our BAC EPS report preview here.

BAC Peers	03-16-15 to 03-27-15
Bank of America (BAC)	-5.1%
SPDR S&P 500 (NYSE: SPY)	-0.9%
Financial Select Sector SPDR (NYSE: XLF)	-2.8%
Citigroup (NYSE: C)	-5.0%
J.P. Morgan Chase (NYSE: JPM)	-3.7%
Goldman Sachs (NYSE: GS)	-2.0%
Morgan Stanley (NYSE: MS)	-2.5%
Wells Fargo (NYSE: WFC)	-2.9%
U.S. Bancorp (NYSE: USB)	-4.2%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Real Estate Springs Green Sprouts

Pending Home Sales were reported Monday morning for the month of February. The data offered another green sprout, showing early signs that real estate activity is picking up. It was one of several recent indicators to do so. I see important reasons why real estate will see significant progress in 2015 and 2016 and recommend investment in real estate and in relative securities. See my report on real estate here.

Real Estate Relative Stocks	YTD	TTM
iShares US Real Estate (NYSE: IYR)	+3.6%	+22.4%
SPDR S&P Homebuilders (NYSE: XHB)	+9.1%	+13.9%
Bank of America (NYSE: BAC)	-13.0%	-8.9%
MGIC Investment (NYSE: MTG)	+4.1%	+14.3%
Market Vectors Mortgage REIT (NYSE: MORT)	+1.0%	+9.3%
Pultegroup (NYSE: PHM)	+5.9%	+18.4%
D.R. Horton (NYSE: DHI)	+12.5%	+30.6%
Apartment Investment & Mngmt. (NYSE: AIV)	+6.0%	+36.0%
Equity Residential (NYSE: EQR)	+8.2%	+40.2%
Prologis (NYSE: PLD)	+2.1%	+11.2%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

The Truth About Oil Inventory & Storage Capacity - Part I

We have seen historic builds to a historic level of oil inventory. The dramatic news has been more than enough to lead major media to warn us all of the great danger that threatens. What if crude oil inventory, which is approaching storage capacity limits, breaches capacity? If that dam were to break, the flood of oil suddenly for sale to the market could drive oil prices fast and furiously to significantly lower lows, and drive a capitulation moment for the prices of energy sector securities. But all might not be lost dear friends. Energy bulls are hopeful that an approaching seasonal shift, which will halt the building of oil inventory and begin the draws of oil from storage, might precede that nightmarish scenario. And there is also the prospect that OPEC might act soon enough and in an important enough way to impact supply. The fact is, though, that we are not yet close enough to storage limits to raise such alarm. This is just another case of the media sensationalizing a story that has the interest of a good many Americans and certainly investors. Let me tell you the truth about crude oil inventory and storage capacity. Article interests (NYSE: OIL), (NYSE: USO), (NYSE: XLE), (NYSE: XOP), (NYSE: XOM), (NYSE: CVX).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Gold Says Hello Inflation My Old Friend

Gold benefits from inflation because inflation erodes the value of the dollar, but inflation has been nowhere to be found for what seems like forever now. Yet, while examining the day’s market catalysts, I noted something unusual. It was a hint of inflation. Inflation doesn’t have many friends and is the enemy of the stock market, but it has a loyal friend in gold. See my full report on gold and inflation here.

Gold Relative Security	YTD	TTM
SPDR Gold Trust (NYSE: GLD)	+0.2%	-9.4%
iShares Silver Trust (NYSE: SLV)	+8.2%	-15.2%
Market Vectors Gold Miners (NYSE: GDX)	+7.5%	-18.3%
Market Vectors Junior Gold Miners (NYSE: GDXJ)	+3.6%	-9.4%
Direxion Daily Gold Miners Bull 3X (NYSE: NUGT)	-0.9%	-68.8%
Goldcorp (NYSE: GG)	+6.0%	-18.9%
Newmont Mining (NYSE: NEM)	+19.8%	-2.7%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Inflation Fear is Spooking Stocks

It was just a sniff, mind you, but it was of a foul odor. A whiff of inflation seen in the monthly Consumer Price Index data held back stocks Tuesday morning that I believe would have otherwise gained from the get-go. The SPDR S&P 500 (NYSE: SPY) later resurfaced, as it was but a hint of bad news. However, it issues investors a warning of the possibility of a really poor scenario for stocks longer term. See my full report here.

Sector Security	03-24-15 Thru Noon
Vanguard S&P 500 (NYSE: VOO)	+0.1%
iShares Dow Jones (NYSE: IYY)	-0.0%
Fidelity NASDAQ  ETF (Nasdaq: ONEQ)	+0.2%
ProShares Ultra Gold (NYSE: UGL)	-0.0%
ProShares Ultra Real Estate (NYSE: URE)	-0.9%
United States Oil (NYSE: USO)	+0.1%
WisdomTree US$  Bullish (NYSE: USDU)	+0.3%
iShares 20+ Yr. Treasury (NYSE: TLT)	+0.2%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Stocks Sing A Bohemian Rhapsody

If the market could sing a song today, it would be Bohemian Rhapsody by Queen. She would sing, “Nothing really matters to me.” Nothing matters to this market except the Federal Open Market Committee’s upcoming Monetary Policy Statement release due Wednesday afternoon. So for now, nothing really matters anymore. See my full report on the stock market here.

Market Sector Security	Tues Morning	Monday
SPDR S&P 500 (NYSE: SPY)	-0.5%	+1.3%
SPDR Dow Jones (NYSE: DIA)	-0.8%	+1.3%
PowerShares QQQ (Nasdaq: QQQ)	-0.3%	+1.3%
iShares Russell 2000 (NYSE: IWM)	-0.3%	+0.6%
Vanguard Total Stock Market (NYSE: VTI)	-0.4%	+1.3%
PowerShares DB US Dollar Bullish (NYSE: UUP)	-0.3%	-0.8%
iPath S&P GSCI Crude Oil (NYSE: OIL)	-2.8%	-3.3%
SPDR Gold Trust (NYSE: GLD)	+0.2%	-0.0%
PIMCO Total Return (NYSE: BOND)	+0.1%	-0.0%

DISCLOSURE: Kaminis is short UUP. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Bank of America (BAC) - 50% Upside to $24 Target

Bank of America (NYSE: BAC) shares have been ironically placed into a position to achieve superior appreciation over the next year. Fear of higher interest rates had stocks moving sharply lower recently, including BAC. But, ironically, Bank of America will benefit significantly from a higher interest rate environment. Then on Thursday, the bank was separated from its peers by the Fed’s second round of stress testing, keeping it from participating in the rally its peers enjoyed. However, ironically, the bank will still be allowed to return $4 billion in value to shareholders via its planned share repurchase program over the next 12 months. For this reason, BAC looks ironically misplaced to me, and given its valuation discount to peers, I expect superior appreciation for BAC over the next year amounting to at least 50% appreciation toward my target price of roughly $24 a share. See my full report on Bank of America (BAC) here.

Bank Stocks	03-12-15
SPDR S&P 500 (NYSE: SPY)	+1.3%
Bank of America (NYSE: BAC)	-0.1%
Citigroup (NYSE: C)	+3.3%
J.P. Morgan Chase (NYSE: JPM)	+1.9%
Wells Fargo (NYSE: WFC)	+3.5%
Goldman Sachs (NYSE: GS)	+3.1%
Morgan Stanley (NYSE: MS)	+6.1%

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Myopic Market Mania

The market is myopic this week and for good reason. Despite the usual busy week of economic reports and the corporate news that will surface, this week is all about the Federal Open Market Committee (FOMC) monetary policy statement release. One key word could dictate a significant one-day move, and also dictate direction for the rest of 2015. See my full stock market report here.

Market Sector Security	YTD
SPDR S&P 500 (NYSE: SPY)	+0.1%
SPDR Dow Jones (NYSE: DIA)	+0.2%
PowerShares QQQ (Nasdaq: QQQ)	+2.3%
iShares Russell 2000 (NYSE: IWM)	+3.1%
Vanguard Total Stock Market (NYSE: VTI)	+0.9%
SPDR Gold Trust (NYSE: GLD)	-2.8%
PIMCO Total Return (NYSE: BOND)	+1.7%
United States Oil (NYSE: USO)	-15.5%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Why a Stock Market Correction of 10% or More is Likely

A stock market correction is overdue and all the right triggers are cocked and ready to go. The U.S. Federal Reserve is preparing to remove key language from its monetary policy statement that will likely panic more than a few investors. If it keeps that language as is, stocks should rally back toward recent highs, but if not, this correction should reach its fruition. See our full report on the coming stock market correction here.

Security	Since 03-05-15	YTD	TTM
SPDR S&P 500 (NYSE: SPY)	-2.6%	-0.3%	+11.6%
SPDR Dow Jones (NYSE: DIA)	-2.5%	-0.3%	+10.5%
PowerShares QQQ (Nasdaq: QQQ)	-2.7%	+2.7%	+18.5%
iShares Russell 2000 (NYSE: IWM)	-2.0%	+1.2%	+3.2%
Vanguard Total Stock Market (NYSE: VTI)	+2.5%	+0.3%	+10.7%
iPath S&P VIX ST Futures (NYSE: VXX)	+6.1%	-8.0%	-35.7%
SPDR Barclays High Yield Bond (NYSE: JNK)	-0.9%	+2.0%	+0.7%
SPDR Gold Trust (NYSE: GLD)	-3.1%	-2.3%	-14.2%
iPath S&P GSCI Crude Oil (NYSE: OIL)	-4.9%	-11.6%	-54%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.