Another Explanation for the Rise in Gold

The recent rise in gold has been widely discussed in financial media. There have been numerous issues attributed to gold’s rise including the U.S./China trade war, an increasingly-dovish Fed, a slowing economy and a rising risk of recession. One issue-albeit one you probably have not heard about yet-is the increasing risk of stagflation. The phrase stagflation was first used in Great Britain and today is understood to mean a period in which prices rise without a corresponding increase in demand. During a period of stagflation,... Continue Reading

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A New Debt Milestone

The U.S. Government debt recently topped an astounding $22 trillion reaching a new debt milestone. The debt is composed of two components: debt held by the public and debt held by government agencies. The public debt is continuously marketed to investors all over the world. This debt is used to fund the deficit as well as to pay off maturing debt. Because investors demand a return on their investment, public debt is subject to interest charges, furthering the ongoing deficit. For a government to manage... Continue Reading

More Symptoms of Economic Trouble

Today, the Institute for Supply Management reported that its manufacturing purchasing managers index fell in February to the lowest level since November 2016. Not coincidentally, it is not the only economic indicator to decline to the lowest levels since that time. Could this mean more symptoms of economic trouble? Of course, November 2016 was when Donald J. Trump was elected President in a victory that caught many off-guard. Since he has been in office, Trump has enacted significant legislation. His administration has performed significant deregulation,... Continue Reading

How About 55% Declines for Stocks?

Love him or hate him, President Trump has accomplished a great deal in his first two years in office. Stocks are near record highs, unemployment is near a 50-year low and the economy is seeing real growth. Trump, who has never been one to shy away from voicing his opinions, and he recently tweeted: ‘Had the opposition party (no, not the Media) won the election, the Stock Market would be down at least 10,000 points by now. We are heading up, up, up!’ – President... Continue Reading

How to Make the Most of an Investment in Gold

When it comes to making the most of an investment in gold, there is really one simple rule of thumb to follow: Buy as much as you can. With a long-term view and long-term objectives, the more bullion you can acquire the better. Not only does this strategy on how to make the most of an investment in gold provide the most upside appreciation potential, but it comes with other potential benefits as well. Higher Prices: Simple math tells you that the more gold you... Continue Reading

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Don’t Say You Weren’t Warned

The last several weeks have seen developments on multiple fronts that could potentially shape the next major market meltdown. The Fed’s reluctance to continue shrinking its balance sheet must be at the top of the list. The writing on the wall has never been clearer: Stock markets cannot maintain current levels and wouldn’t have gotten here in the first place without the massive stimulus efforts of the Fed. In other words, stocks are currently trading at “artificial” levels. Stock valuations have not reached current levels... Continue Reading

Does the Fed Have Any Credibility Left?

The Federal Reserve has demonstrated that it is incapable of weaning the stock market off Fed-stimulus. This begs the question of whether the central bank has any credibility left as an inflation fighter and independent institution. The central bank began “treating” the market years ago. The Federal Reserve began with an initial round of QE, and when that didn’t work, it proceeded to provide additional injections in the form of QE2 and later QE3. Even that wasn’t enough, and the Fed was also forced to... Continue Reading

Significant Signs of Strength

There are significant signs of strength for gold showing lately. The gold market is higher today, gaining over $4.00/oz. Although that itself may not be noteworthy, it is interesting that gold is climbing today despite some serious headwinds that might normally weigh on the metal. The benchmark Dow Jones Industrial Average is up over 350 points in early action today. There has reportedly been some solid progress made in the U.S./China trade negotiations that took place in Beijing this week. Officials appear to have at... Continue Reading

Another Week Another Fed Meeting

Another Week Another Fed Meeting After finally breaking through key resistance around the $1,300 area last week, the gold market is taking a bit of a breather in early action today. The market appears poised for further upside, and a solid close above resistance or several consecutive closes above could add credibility to the recent breakout. The market will have numerous issues to contend with this week, including the end of the government shutdown, corporate earnings and the Fed meeting on Wednesday. Gold may see... Continue Reading

Leading Indicators Decline

According to a report by marketwatch.com, leading indicators declined by .1% in December in what may be viewed as another sign of a slowing U.S. economy. Of note is the fact that the index fell in two of the final three months of 2018, quite possibly due to the current slowdown gathering steam. The latest disappointing economic report is just another in what has seemingly become the trend of late. Several key components of the economy, especially in the manufacturing sector, have been showing weakness... Continue Reading