Is Slumping Crude Oil a Bad Sign?

Oil is hitting fresh 2017 lows in recent trade, and it is certainly having an impact on equities. “Black gold” traded below the $43 per barrel level today, and all signs appear to be currently pointing to ongoing downward pressure. Oil can potentially be a good barometer of overall economic activity, and the recent slide in prices to their lowest levels of the year cannot be ignored. Continuing worries over a global oversupply are preventing any significant rise in prices, and until that oversupply is... Continue Reading

Did the Fed Leave a Bad Taste in Some Mouths?

In our previous post, we discussed the potential implications of another rate hike from the Fed. The central bank’s decision to raise rates another 25 basis points seems to have left many wondering about the bank’s endgame-and some have even gone so far as to suggest that the Fed needs to unwind the current system of fiat currency. In a recent interview with Kitco.com, Ron Paul stated that Fed Chairwoman Janet Yellen should be working with the government to “unwind the system of fiat currency”... Continue Reading

Inflation Expectations Remain Subdued

This has been seen before and will likely be seen again. The Fed raised interest rates on Wednesday afternoon by 25 basis points in a move that was widely expected. The twist, however, may be in the differing outlook on inflation between the Fed and the markets. One need only look at the latest reading on the Consumer Price Index to see this. On Wednesday, the latest reading on CPI registered a figure of -.1%. Not only was the core reading a full tenth of... Continue Reading

So What if the Fed Hikes Again

The gold market may see some volatility ahead of this week’s FOMC meeting conclusion. The yellow metal is likely seeing some profit taking ahead of the central bank’s announcement, but that certainly does not mean that the market will not head higher in the coming weeks and months. The Fed may be forced to act this week in order to maintain credibility. The Fed has stuck to its guns in recent communications, and thus far appears to be remaining on track for another two rate... Continue Reading

Is Market Risk Highest Since 2008?

Stocks have been moving higher for years now, in fact it has been nearly a decade since the bull market got underway. Although it seems at times that nothing can stand in the way of higher equity prices, some investment professionals have been sounding the alarm bell. One such professional is Bill Gross, affectionately referred to as the “bond king” and manager of the Janus Henderson Global Unconstrained Bond Fund. And when Mr. Gross speaks-people listen. Mr. Gross seems to be of the opinion that... Continue Reading

Plenty of Reasons to Keep Gold in your Portfolio

With stocks making fresh all-time highs and economic optimism seeing a large increase in recent months, some investors may be questioning the value of hard assets like physical gold. But make no mistake, there are just as many reasons right now to hold gold as ever before. Despite the potential for further interest rate hikes from the Fed, gold has a number of issues that could not only keep it well-supported but could also potentially fuel a significant rally from current levels. Weak economic data... Continue Reading

Is Gold the Ultimate Wealth Attractor?

In a recent interview with Kitco.com, Rich Dad Poor Dad author Robert Kiyosaki suggested that if you want $100,000, you need to get gold. The world-renowned author stated “If I want $10,000 a month, I hold $10,000 in gold; gold is an attractor and people need to understand that if you buy more gold, your income goes up.” That is a pretty profound statement for sure. The law of attraction is very powerful-and what better way to build your wealth than starting with a solid... Continue Reading

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Is Gold Production Peaking Right Now?

Like any other commodity, the gold market ebbs and flows according to the laws of supply and demand. When supplies are tight and demand is strong, prices rise. When supplies are robust and demand is weak, prices fall. The gold market could be hitting its peak for the current production cycle right now, which could potentially fuel higher prices. In a recent Kitco.com article, analysts from Standard Chartered voiced their opinion on gold production. According to the bank, global growth output slowed down by .4%... Continue Reading

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Is Gold Setting up for a Significant Move Higher?

Although the gold market may be seeing some weakness to begin the new trading week, the yellow metal is likely just seeing some profit taking after prices hit a one month high. We have seen this song and dance before, where gold sees some moderate selling ahead of an interest rate hike only to move higher following the hike. We expect this time around to be no different, as the Fed appears ready to pull the trigger on another rate hike in mid-June. The gold... Continue Reading

Will the Consumer Sink the Ship?

It’s no secret that first quarter growth was lousy. Many analysts, however, see the economy bouncing back in the second quarter. If the Fed plans to stay on its current course of rate hikes (which it appears to be doing), the central bank must also assume that economic activity will be stronger in Q2. What if these assumptions prove to be false? Q1 GDP came in at a skinny rate of just .7%, and estimates appear to be looking for growth of around 2.5% in... Continue Reading