Gold and Your Financial Future

It’s no secret that diversification is critical to a long-term investment strategy. And no, we don’t mean buying a few different stocks and then pouring a ton of cash into your company stock. Effective diversification includes different asset classes. These asset classes may include stocks, bonds, real estate, precious metals, and more. Unfortunately, many investors suffer a false sense of security as they are not aware of many of the options available to them and mistakenly believe they are well-diversified. To illustrate this point, the... Continue Reading

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Can Gold and Rates Rise Together?

Last week, the release of minutes from the latest Federal Open Market Committee (FOMC) meeting showed there is growing support for another rate hike to take place in June. This seems to be quite contrary to recent assessments by many analysts, who have cited several reasons that any further hikes would likely wouldn’t be seen until December, if at all in 2016. Perhaps this was another example of investor complacency. According to the minutes: “Some participants were concerned that market participants may not have properly assessed... Continue Reading

The Dollar Index Could Be at the Cliff’s Edge

The dollar index is a measure of the value of the U.S. Dollar versus a basket of other currencies. When the index is rising, the dollar is appreciating. When the index is declining, the dollar is depreciating. The dollar index is currently near a key previous low that, if breached, could potentially see a significant leg lower in the dollar’s value. That’s right. The greenback is precariously close to seeing what could be a significant decline against a basket of other currencies. And guess what.... Continue Reading

The Least Expensive Way to Begin Acquiring Silver

So you have decided to begin investing in silver. The question now is what types of silver products should you be buying. There are numerous choices available to investors when it comes to silver, and what you decide to invest in may be determined by your investment goals. We believe that various forms of coinage certainly have their place within your portfolio. We also believe, however, that the key to building a long-term financial fortress using precious metals is to buy and hold as much... Continue Reading

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What's Next From Central Banks?

Although the Federal Reserve has recently abandoned its policy of zero interest rates and has put an end to (at least for now) its quantitative easing program, the era of QE and ultralow interest rates around the globe may be far from over. This past week, the Fed announced it would hold interest rates at current levels although a hike or two still remains on the table for June and possibly December. In a surprising move, the Bank of Japan elected this week to do... Continue Reading

Today’s Jobs Report Another Sign of Underlying Weakness

It’s the first Friday of the month and today has brought one of the most key pieces of economic data released each month in the employment situation report. The U.S. Department of Labor reported the country added just 160,000 jobs in April as the unemployment rate ticked up to five percent. This jobs number was significantly less than the consensus estimate of 200,000 jobs created. What might this data tell us? Despite much of the positive talk and rhetoric currently being circulated, the economy may... Continue Reading

Is the Global Economy Entering a Period of Deflation?

Does debt work? This question already appears to have found an answer, and the coming years could reinforce the notion that the massive amounts of debt accumulated around the world are due at some point, and a price will have to be paid. That day could be closer than many realize… Take a look at how equity markets began 2016. The Dow Jones saw its worst start on record, the S&P 500 tumbled, and crude oil prices continued their slide to trade below $30 per... Continue Reading

3 Possible Catalysts for a Significant Rally in Gold This Year

The gold market has gotten 2016 off to a good start. Investors have been buying the yellow metal as uncertainty over global economies and equities intensified. The interest seen in gold at the beginning of the year could potentially be just a glimpse of things to come. Gold appears to have found a meaningful bottom, and the market may be poised to resume its longer-term uptrend. While the possible reasons for a rally in gold are numerous, here are three potential issues that could potentially... Continue Reading

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Gold and the Presidential Cycle

According to the theory of the Presidential election cycle, U.S. stocks experience weakness in the year after the election. The cycle then may revert back to stronger equities until it is time for the next election. What may drive initial weakness in equities followed by a rebound? The answer is reforms, new policies and a degree of uncertainty. Think about it this way: When a newly elected President takes office, he or she may look to deliver on plans discussed on the campaign trail, even... Continue Reading

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The Coming Bear Market in Stocks

In general, a bear market is a market that has declined twenty percent from its high. This drop becomes especially significant when multiple stock indexes are down twenty percent or more and when these declines have lasted for at least several weeks. Are U.S. stocks currently in a bear market? No. Are global equity markets in bear market statuses? Yes. Could U.S. stocks be headed for a bear market? Absolutely. While no one can see the future, the domestic stock market could potentially be at... Continue Reading