Tag Archive: deflation

3 Important Questions to Ask

There is without question a very strong case to be made about why you need to have physical gold as part of your portfolio. This asset class can not only potentially see significant appreciation in value, but may also provide an important hedge against numerous economic and geopolitical issues such as inflation, deflation, a weaker dollar and more. Perhaps the more important question to be asking is not if you should incorporate gold into your investment strategy, but rather how much gold should you buy... Continue Reading

Category |

Gold set to Continue Higher

Gold prices have slowed down a bit in recent action following strong gains seen in recent weeks. In fact, the yellow metal now looks poised for a run at the $1400 per ounce price level, and there really does not appear to be much standing in gold’s way. As we discussed previously, a pullback allowing some back and fill trade in gold is not only likely, but also a good thing. Markets rarely go straight up or straight down, and when they do such moves... Continue Reading

Where is the Inflation?

Inflation data released today showed the ongoing absence of price pressures that could force the Fed to be more aggressive when it comes to monetary policy. The U.S. Labor Department reported this morning that the U.S. Consumer Price Index was unchanged in June. Consensus estimates were looking for a rise of .1%. Year-over-year CPI was also below consensus estimates, with an annualized reading of 1.6%. All major components of the index showed broad-based weakness, with energy prices in particular showing a significant decline. Core inflation... Continue Reading

Don’t Be Fooled

Following what many considered to be a long-shot victory by Republican Presidential candidate Donald Trump, markets have been moving higher after some initial volatility. The dollar index is approaching 14 year highs, while the Dow Jones has been on a record-setting spree. Interest rates have been on the rise, as bonds and notes were sold heavily. Is this truly the beginning of a new era? In our view, the answer is perhaps yes, but probably no. While things may be looking better here in the... Continue Reading

Will the Fed Sink the Ship By Hiking?

The debate about the pace and timing of any further interest rate hikes by the Fed has been a primary focus of investors since the historic Brexit vote in late June. Although some data has looked promising, other key pieces of data have been an outright letdown. Due to some of the mixed signals being seen in the data stream, Fed Funds futures have seen frequent changes and markets are currently pricing in only a small chance of a September rate hike. These contracts are,... Continue Reading

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

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

Category | ,

3 Reasons You Should Consider Adding Gold to Your Portfolio Right Now

If you do not already have a significant allocation in physical gold, silver or other precious metals, right now may be the time to seriously consider starting one or adding. Here are three reasons why: Stocks are heading lower: The last several weeks have seen enormous volatility in global financial markets. After seeing a sizable decline in equities in late summer, investors are once again seeing strong selling pressure. These pressures are coming from multiple sources currently that include China, other emerging markets, weak commodity... Continue Reading

Category |

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

Why Are Nations Adding to Gold Reserves?

Governments and their central banks represent the largest players in modern financial markets. If these financial superpowers are acquiring and stockpiling more gold, maybe you should consider an allocation in gold as well. Gold’s importance to the global economy cannot be understated. The reality is that if gold were simply a relic of the past without true purpose or value, central banks would not buy and hoard the yellow metal. What do these central banks know that you don’t? Central banks began adding to gold... Continue Reading