I first spoke to Paul Kangas a week before the infamous Black Monday in October 1987 when I was so concerned about the market‘s risk, I decided to call Paul for his thoughts. He justified my fears and supported my views. He said to me that within days a major collapse would occur. He proved to be deadly accurate! I have kept in contact and seen Paul over the years and phoned him in Florida this week to find out what his views are at present.

As most of you in North America know, Paul retired from the Nightly Business Report three years ago but has continued his research on the world’s markets as he remains a full time investor. He zealously follows the stocks and commodities markets on a daily basis. He doesn’t miss much. He was quite aware of what we are thinking and hit me with his forecast. I asked him if he was still positive on gold mining stocks and he responded quite positively for gold and mining stocks. He said that he finds the “rare earth elements” stocks to be incredibly cheap at their present prices.

He emphasized that in his opinion, the hard assets are astoundingly undervalued in view of the “constant printing of money being done” today. He feels that if one is patient, one will be well rewarded. His opinions give us a real boost as he has been a superb analyst and forecaster over the years. Patience is his forte.

We will try to do an in-depth interview with Paul next week. We receive more inquiries asking about Paul and his outlook than for anyone else. His TV presence and market insight are missed. Our partner in Montreal told me that he stopped watching the Nightly Business Report almost immediately after Paul left. So many investors regularly ask us about him, he had a tremendous television following in Canada as well as in the US. Today obviously, Paul thinks that his daily tag line farewell “the best of good buys” are the mining stocks. We agree with that view-to say the least.

We also recently spoke to John Murphy, the dean of technical analysis and distinguished author on the subject. Coincidentally, John also happened to be one of Paul Kangas’s favorite guests for the NBR’s “Weekly Market Monitor” segment. John has recently completed his fourth book on technical analysis and we cannot say enough about it; so much so that I will review it more completely next week.

As you may know, John’s previous books have been printed in eight languages due to worldwide demand. Just as we have found with Paul, people ask us regularly about John’s views and why he is not on television as in the past. The fact is that John had appeared on TV for years and it’s a case of “been there, done that” and that was enough. He told us that appearing once a year is fine.

We asked John about the mining shares. His response is that in his opinion, they seem to be sold out and may merit investor attention. We will review his new book “Trading with Intermarket Analysis” next week. It is the best book on technical analysis that we have ever read. Yes, it’s that good. So more with Paul and John next week- a lot more; we promise that.