Tag Archive: qe

It’ll Keep Going

Recent pieces of key economic data have not painted a rosy picture. ISM manufacturing and services data have both shown significant declines, and the global financial market is now getting increasingly worried about the prospects for a recession in the U.S. Markets are now pricing in another Fed rate cut this month, and the central bank could even allude to further cuts if the data does not rebound. Although the risks of recession do appear to be on the rise, the next major recession could... 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

Take Advantage Now

The gold market continues to remain on the defensive, as prices have not been able to distance themselves from 12-month lows. Weaker crude oil, a stronger dollar, rising yields and higher stocks have all taken a decidedly bearish toll in recent weeks. Selling pressure has seen the metal drop to 12-month lows, while also potentially threatening to take it down even further. Sentiment in the sector is bearish, and could arguably be seeing an extreme level that may not be sustainable. In other words, right... Continue Reading

Is the Economy Running on Borrowed Time?

Without question, the U.S. economy is currently on more solid footing than it was a few short years ago. The labor market is strong, with unemployment levels at the lowest levels in years, and recent growth figures have in some cases exceeded expectations. The Fed has even begun the process of monetary tightening, lifting interest rates off the ultra-low levels seen over most of the last decade. Recent tax cuts and massive government spending are certainly playing a role in the current economic expansion. Stocks... Continue Reading

Forget Price for a Moment

Although the potential for higher prices is certainly a reason to buy and hold gold, there are several other reasons, perhaps even more important reasons, to buy and keep the metal. While most investors have been fixated on the stock market for the last decade, the gold market potentially represents an excellent value at current price levels. Not only that, but the current state of the economy and geopolitical landscape may also warrant a significant allocation in gold. Below are three primary issues that should... Continue Reading

The Time to Prepare for the Next Recession is Now

The current economic expansion in the U.S. is the third longest recorded. And while the idea of a never-ending expansion is certainly appealing, it is also straight out of fantasyland. The economy will see another recession, and the next one could be closer than many have been anticipating. And it could be brutal… Whether its next year, two years from now or even early in the next decade, the next recession could have a significant impact on the economy. Only this time, the Fed may... Continue Reading

This Could Be It

Gold is moving higher again today, as the yellow metal continues to gain upside momentum. After declining to nearly the $1200 per ounce level earlier this month, gold has seen solid buying interest and has recouped almost $50 per ounce. Recent price action could potentially be indicative of a major reversal in gold, and an upside breakout could see prices move significantly higher. Although gold may have some bearish issues working against it, the metal also has a number of bullish factors that appear to... Continue Reading

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Look Out Below

The next major market downturn could make the market meltdown of 2008 and 2009 seem like a walk in the park. There are numerous potential issues that could fuel a major sell-off in stocks and risk assets, and declines well into the double digits are a distinct possibility. Gold is often referred to as a type of portfolio insurance, and now may be the ideal time to consider adding this key asset class to your portfolio. Before you shrug off the notion of owning hard... Continue Reading

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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