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Sears is Now Banking on Bankruptcy Bailout

Gold last traded at $1,226 an ounce. Silver at $14.66 an ounce.

NEWS SUMMARY: Precious metal prices inched higher Wednesday despite a firmer dollar. U.S. stocks zig-zagged as gains in banks and Netflix offset corporate earning and housing market worries.

Why it's worth holding a bit of gold in your portfolio -Moneyweek
"We have interest rates going up at a clip that's much faster than certainly a lot of people, including myself, would have anticipated. I think the Fed is out of control. Central banks are independent, in theory. But that won't stop the president of the US from giving his full and frank opinion on their performance. Donald Trump reckons the Federal Reserve is to blame for the recent spasm of panic in markets....Meanwhile, gold - that much-detested haven for those still superstitious enough to fear that economists and central bankers haven't quite got all of this figured out yet - had a big bounce, all the way up to $1,220 an ounce. We don't know what the Fed will do. It's a difficult position for Jerome Powell to be placed in. If he looks as though he's caved to Trump, then his credibility is shot. Yet at the same time, the Fed has a history of responding to market falls with soothing words....I don't know what's going to happen. But to me, this is the point of owning a bit of gold in your portfolio. It's insurance. It's the asset that goes up when most things are going down. It benefits from two main things: currency debasement and panic."

stock market The stock market looks like it is due for more pain, even as it teases with comeback rallies -CNBC
"The market last week hurt investors coming and going. The 5.3 percent crunch in the S&P 500 on Wednesday and Thursday took the index back to early-July levels - inflicting buyer's remorse on anyone who bid into the late-summer rally - while punishing the most popular huge growth stocks of technology the hardest....Jeff deGraaf of Renaissance Macro Research has been respectful of the market uptrend but on alert for a defensive turn in what he sees as a late-cycle environment. On the path from here, with no clear capitulation but no obvious credit stress, 'it's a tough call,' he said. 'Currently, with credit sanguine, we're more confident in resumption of trend. Even if it is the beginning of the end, the playbook would be to see equities bounce further, challenge a new high (if not make one) before puking again.'"

The 'Uncivil' War - Ponte/WND
"'You cannot be civil with a political party that wants to destroy what you stand for, what you care about,' said Hillary Clinton days ago. What this means, she made clear, is that civility can only return when her Democratic Party again controls the government. If our nation does not elect her (or one of her progressive comrades) to rule, then those leftists will be justified in using resistance, undemocratic government power, intimidation and mob violence in a very uncivil war to ruin America....Clinton's party now schemes to replace American freedom with slavery and serfdom, free enterprise with socialism, individualism with collectivism, and independent nationhood with submission to a borderless authoritarian world government. This 'uncivil' war has already begun. The Democratic Party has for many years given aid and comfort to up to 22 million aliens who illegally invaded our country. Democrats assume that by giving such invaders the right to vote and then citizenship, this would provide their party a winning electoral margin for half a century or more....Today's uncivil Democrats show why the Framers of our Constitution feared the mob. As individuals, most of us are fair and practical; but in emotional groups, people can sometimes easily become a terrorist mob."

How will this rising "uncivil" war affect the outcome of the midterm elections just 21 days away? Read our FREE report, How The Midterm Elections Will Affect Your Bottom Line to find out what a 'blue wave' might do to your financial future.

Sears, a Onetime Retail Giant, Now Banks on Bankruptcy -Wall Street Journal
"Early Monday, Sears filed for bankruptcy protection after years of struggle and relentless losses. Sears said in court papers it faces catastrophic consequences if it can't repair its supply chain and keep merchandise flowing to the company's stores and warehouses. Some 200 vendors have stopped shipping goods to its stores in the past two weeks and it faces potential liens if it can't pay logistics companies owed millions of dollars over the coming weeks, Sears said in court papers....ESL Investments, is slated to provide a $300 million bankruptcy-financing package to help keep the retailer in business. ESL Investments also is in discussions to bid for about 400 of the most profitable Sears and Kmart stores, Sears said on Monday. At its peak, the company Mr. Lampert put together from the 2004 merger of Sears, the store 'where America shops' and big-box retailer Kmart, operated more than 2,300 stores. That number had dwindled to fewer than 700 by Sears's Monday filing. Sears said it would close 142 unprofitable stores near the end of the year, with liquidation sales expected to begin shortly. The closings are in addition to 46 stores that are expected to close by November."

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Latest Feature Commentary

Red October! Is This Wall Street's Big Correction?
By Craig R. Smith - Today the DJIA fell 831 points (3.1%), lead by the NASDAQ'S 400 point drop, as rising rate fears caused investors to quickly pivot out of technology stocks. CNBC reports, "Amazon stocks fell 6.2%, Netflix slid 8.4%, while Facebook and Apple also fell over 4% each - making this the worst day for tech since 2011." More...

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