Former NFL player Bill Murphy of GATA.org returns with commentary on the stunning advance in palladium. The former industrial metal has an inversion of the typical market dynamics, eclipsing the precious metals king. The host proposes a chief factor sending Palladium higher while gold and platinum remain relatively subdued. Unlike the former high fliers, palladium was not hoarded as a store of value, but instead consumed like silver by industries. The silver market could undergo an epic run to the three digit level in surprisingly fast order. For the first time in perhaps decades, central banks are now accumulating silver. President Putin directed the Moscow bank to fill the coffers with 72 pound silver bars. The new trend suggests the already inelastic market could soon stretch even more tightly for exceptional expected-returns.Dr. Burton Malkiel, returns to the show to discuss the 12th edition of A Random Walk Down Wall Street. For decades his magnum opus has guided millions of investors on the path to financial success through diversified index funds. While a small cadre of investors occasionally outperform the market return substantially it is rarely consistent. 90% of actively managed funds fail to meet the returns of basic index funds. Economics Nobel Laureate, Professor Paul Samuelson likened trading vs. investing as giving a potent potable to the addict. Our guest outlines research on financial market bubbles, such as the dot.com bubble, the Crash of 1929 and the Tulip Mania. Dr. Malkiel outlines key findings on ETF expense ratios, offering guidance on the best ETFs for optimal expected-returns. Dr. Malkiel prefers mutual fund investments over ETFs to avoid the hidden costs associated with the spread. The difference between the bid / ask, an expense levied on the ETF purchaser. Favorite ETF alternatives include Vanguard and Fidelity index funds. Dollar-cost-averaging (DCA) on a regular basis, i.e., adding funds to a portfolio of index funds is highly advisable. For example, the recent 20% decline in US equities offered significant discounts to investors who deployed the DCA investing methodology, essentially providing indirect market-timing success without forecasting or predictive modeling.
