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TSX Venture Exchange And Overall Markets

The Venture continues to consolidate and declined 13 points or 1.6% last week, its worst weekly performance since August 22–26.  However, investors may be surprised to know that for the month of September so far, the Venture leads all the broader markets with a gain of 1.7%.  The TSX is off 1% through the first half of this month, the Dow has fallen 1.5% while the NASDAQ is up just a fraction.

This continued outperformance by the Venture, against not only other equity markets but Gold and Oil as well, is a very positive sign (consistent with a Venture bull market) and confirms in our view that the Index is merely going through a temporary consolidation phase prior to another major push to the upside.

To the peddlers of fear, if stocks in general were about to “crash” there’s no way the Venture – the most speculative market in the world and a reliable leading indicator – would be outpacing the broader indices and even Gold at the moment.  Not a chance.

Keep in mind, in each and every bull market year going back to 2003, the Venture has climbed powerfully from its August close to year-end.  The average gain is nearly 30% which means it’s not unreasonable to expect the Venture to find its way to 1000 by the close of 2016.  That’s 25% higher than where it is now, and in that kind of environment there are countless stocks that will perform exceedingly well.

Don’t be fooled by Fed bafflegab or the mainstream media’s obsession with the possibility of the central bank hiking rates next week or later this year for just the 2nd time in more than a decade – not only is that possibility highly remote in our view, but there’s no need to even fear another hike in the context of the current cycle.  Remember, the initial one last December got this amazing Gold and Venture bull market started (Ma Yellen, please give us another hike as soon as possible!).

The coming week features central bank meetings in both the U.S. and Japan.  It’ll be “business as usual” at those gatherings, and you know what that means based on how markets have traded this year.

Click here to read the rest of today’s Week In Review And A Look Ahead, and learn more about where the Venture is headed in the coming weeks, with a risk-free Pro, Gold or Basic subscription featuring a 100% money-back guarantee, or login with your username and password.