Currencies
China’s currency has also gained more than 6% against the dollar in 2020, boosting the dollar value of yuan-denominated shares. In my mind, I would need the total dollar amount of criticized loans to flatten out before getting excited about the bank. He is also Chairman of SchiffGold, his precious metals dealer, Euro Pacific Asset Management, and Euro Pacific Bank, his brokerage firm for international clients. For now, its huge onshore markets still punch below their weight relative to their dollar values.
He is also … more Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, an SEC-Registered Investment Adviser and a full service broker/dealer. A financial professional for more than twenty years, he joined Euro Pacific in 1996 and served as its President until December 2010, when he became CEO. less (Length 00:50:10) Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, an SEC-Registered Investment Adviser and a full service broker/dealer.
He is also … more Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, an SEC-Registered Investment Adviser and a full service broker/dealer. A financial professional for more than twenty years, he joined Euro Pacific in 1996 and served as its President until December 2010, when he became CEO. less (Length 00:50:10) Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, an SEC-Registered Investment Adviser and a full service broker/dealer.
Metals
(Source: Company Presentation) Pan American Silver released its Q3 results in early November and reported quarterly gold production of 4.09~ million ounces of silver and 116,900~ ounces of gold. The massive decrease in silver production was unfortunately due to several of Pan American’s mines being impacted by COVID-19 and its heavy reliance on silver production from South America. Silver production at the two mines came in at a combined 416,000 ounces, down 1.56 million ounces in the year-ago period.
This translated to a sharp decline for both metals in the quarter, with silver production hit the hardest, down 38% year-over-year (Q3 2019: 6.67 million ounces). However, given record gold prices and the new multi-year high for silver, operating cash flow surged in Q3, up 40% year-over-year. (Source: TC2000.com) Pan American Silver is the premier name in the silver space, and it’s quite rare that investors get a 25%-off sale for the stock. Fortunately, the near-record gold price and strength in the silver helped the company deliver a solid quarter operationally with free-cash-flow more than doubling year-over-year.
It also didn’t help that the company just came off another rough report in Q3, with silver production down materially due to COVID-19 related headwinds. Meanwhile, the company also raised its dividend, with the stock paying nearly 1% annually, one of the highest dividends among silver producers. Fortunately, an ebullient market for gold and silver helped to soften the blow.
This translated to a sharp decline for both metals in the quarter, with silver production hit the hardest, down 38% year-over-year (Q3 2019: 6.67 million ounces). However, given record gold prices and the new multi-year high for silver, operating cash flow surged in Q3, up 40% year-over-year. (Source: TC2000.com) Pan American Silver is the premier name in the silver space, and it’s quite rare that investors get a 25%-off sale for the stock. Fortunately, the near-record gold price and strength in the silver helped the company deliver a solid quarter operationally with free-cash-flow more than doubling year-over-year.
It also didn’t help that the company just came off another rough report in Q3, with silver production down materially due to COVID-19 related headwinds. Meanwhile, the company also raised its dividend, with the stock paying nearly 1% annually, one of the highest dividends among silver producers. Fortunately, an ebullient market for gold and silver helped to soften the blow.
Oil
After all, the oil market has recently turned to Backwardation – an indicator that market participants expect oil prices to remain around $50. OPEC+ production cuts may reduce the global oil storage glut; the impact on oil prices is likely to be limited and short-lived. They find that oil price recovery is mostly attributed to higher oil demand rather than production cuts. It comes down to the heterogeneity of oil and OPEC’s diminishing role in the global oil market.
The concerns of oil inventories overflowing have eased, especially considering the oil demand is still recovering. The COVID-19 shock on oil demand also reduced the oil output of non-OPEC producers. Even the December OPEC+ agreement may have helped keep oil prices rising as the market reacted favorably to this news. Nonetheless, for now, oil prices’ recovery may have reached an upbound of around $50 (WTI), as the market doesn’t expect much more gains in the near term. While this agreement helped reduce global inventories and may not have had much impact on oil prices.
Even if OPEC+ hadn’t reached an agreement back in April, other countries would still have slashed output, which helped stabilize the oil market.
The concerns of oil inventories overflowing have eased, especially considering the oil demand is still recovering. The COVID-19 shock on oil demand also reduced the oil output of non-OPEC producers. Even the December OPEC+ agreement may have helped keep oil prices rising as the market reacted favorably to this news. Nonetheless, for now, oil prices’ recovery may have reached an upbound of around $50 (WTI), as the market doesn’t expect much more gains in the near term. While this agreement helped reduce global inventories and may not have had much impact on oil prices.
Even if OPEC+ hadn’t reached an agreement back in April, other countries would still have slashed output, which helped stabilize the oil market.
United States
With support from major tech players that showed resilience to the pandemic, the Nasdaq composite has gained around 42% year to date. Globally, low interest rates and a financial system flush with funds have also fed investors’ enthusiasm for high-growth businesses that can flourish even in a pandemic. Elsewhere the Fed stresses the importance of longer-term inflation patterns, the likelihood of persistence, and the importance of “core” inflation (less food and energy).
The Dow 30 and S&P 500 did not perform as well as in 2019, but the Nasdaq 100 had a solid year driven by mega-cap tech stocks.
When looking back at my previously penned article on Chicago, Illinois-based First Midwest Bancorp (NASDAQ:FMBI), one can come away with two clear points to sum up the investment theses. In addition, Facebook (NASDAQ:FB) is one of a few stocks vying for potential inclusion in the next reconstitution. However, the recent December rebalance has seen the return of Big Tech with the inclusion of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and the increased weighting of Amazon (NASDAQ:AMZN).
Earnings of Ameris Bancorp (NASDAQ: ABCB) shot up this year mostly due to a remarkable surge in mortgage banking revenues. Not only is the company the largest operator of SNFs in the US, but its scale and operational excellence has allowed it to gain an investment grade credit rating. Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening.
0 The Dow 30 and S&P 500 did not perform as well as in 2019, but the Nasdaq 100 had a solid year driven by mega-cap tech stocks.
When looking back at my previously penned article on Chicago, Illinois-based First Midwest Bancorp (NASDAQ:FMBI), one can come away with two clear points to sum up the investment theses. In addition, Facebook (NASDAQ:FB) is one of a few stocks vying for potential inclusion in the next reconstitution. However, the recent December rebalance has seen the return of Big Tech with the inclusion of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and the increased weighting of Amazon (NASDAQ:AMZN).
Earnings of Ameris Bancorp (NASDAQ: ABCB) shot up this year mostly due to a remarkable surge in mortgage banking revenues. Not only is the company the largest operator of SNFs in the US, but its scale and operational excellence has allowed it to gain an investment grade credit rating. Since leaving Wall Street I’ve dedicated my financial career towards studying this situation and helping people understand what’s actually happening.
