Tag Archive: stagflation

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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Markets Don’t Agree with the Fed

The Fed’s decision to hike rates again on Wednesday was met with displeasure from equity investors. Stocks saw sharp declines even as the Fed lowered its forecast for next year from three rate hikes to two. That displeasure was on full display on Thursday, as stocks once again got absolutely rocked. The tech-heavy Nasdaq was down 3% at the lows, putting it down over 20% from its August peak. Although the index recovered a bit, it still ended the session down just under 20% from... Continue Reading

Are You Really Diversified?

Diversification is word that is commonly used in investment circles but is also commonly misunderstood. The definition of diversification may mean something completely different from one investor to the next. What if we told you that some investors really believe that owning a bunch of stocks along with some bonds means they are well-diversified? What if we told you that an investor thinks he is well-diversified because he owns 10 or 15 different oil company stocks? How about owning 10 or 15 mining company stocks?... Continue Reading

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You Should Still Be Buying Gold-Here’s Why

Donald Trump will be the next President of the United States. With this surprising election comes a great deal of uncertainty. Markets showed just how nervous they can potentially get on election night as stock index futures tumbled, gold rallied and the dollar declined. Of course, all of these initial reactions to a Donald Trump Presidency later reversed course, with stock markets later moving higher, gold giving up its gains, interest rates rising and the dollar moving higher. What was seen on election night could... Continue Reading

3 Reasons Why You Cannot Afford to NOT Buy Gold Right Now

As major proponents of physical precious metals ownership, we often discuss reasons why we feel it is in your best interest to acquire and hold physical precious metals such as gold and silver. While we can list numerous reasons for our opinion on the matter, we also felt it might make sense to address why we believe you simply cannot afford not to own physical gold, silver or ideally both. The three reasons listed below are in our view very legitimate concerns. Ignore them at... Continue Reading

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GDP Outlook Slashed

Investors have been cautious this week ahead of Wednesday’s latest FOMC meeting announcement. With no major surprises, the central bank elected to hold rates steady-at least for now-and eluded to the possibility of another rate hike in September. Kind of like kicking the can down the road… The Fed discussed improving conditions in the labor market and stated “Near-term risks to the economic outlook have diminished.” In other words, markets have recovered from the post Brexit freak out-for now anyway. The Fed has left the... Continue Reading

A Lurking Danger

It seems that the pace and timing of additional interest rate hikes by the Federal Reserve has largely dominated financial headlines in recent months. While the general consensus seems to be that the pace of further hikes will be very slow and incremental, we’d like to present an alternative possibility that seemingly few investors are considering. What if inflation expectations were to pick up rapidly? What if in the coming quarters, inflation were to accelerate at a pace significantly faster than the Fed’s two percent... Continue Reading

Is Stagflation The Next Buzzword?

As the Federal Reserve gets ready to hike interest rates for the first time in years, there has been much discussion on inflation, deflation and the apparent lack of the former and possibility of the latter. Through all the measures taken by the Fed in recent years, including holding interest rates at zero and pumping the economy full of quantitative easing capital, inflationary pressures continue to remain subdued. In fact, some analysts remain more concerned about deflation in the current environment. What has not gotten... Continue Reading