Tag Archive: government debt

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

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

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

There’s Still the Debt…

The rally in stocks and the dollar seen over the last six weeks since the U.S. Presidential election has been the center of financial media focus. Given the amount of ground these markets have covered in a relatively short period of time, you might be asking yourself just how much more room stocks and the greenback have to run to the upside. Although no one can say for sure, the answer is probably a lot. The rally may very well continue into the first several... Continue Reading

The Elephant in the Room

China’s currency reserves are not what they used to be. According to some estimates, the dollar’s share of China’s reserves has been slashed to a record low, as the world’s second largest economy looks to diversify away from the greenback. Not only that, but China has reportedly been selling U.S. securities. Thu far, this has not caused any type of panic and doesn’t even appear to be on the radar for most investors. You could certainly make the argument that a pullback in buying by... Continue Reading