At CMI Gold & Silver Inc. we believe that central bank activity is driving the markets — the metals and the stocks. Expectations of loose money mean higher metals prices (in anticipation of increased rates of inflation) and higher stock prices (in hopes that the stimulus will fillip the economy). As for the latter, there
From Dow Theory Letters, September 21, 2016: “Good news today from both the Fed and the Bank of Japan (BOJ). The Fed announced no rate increases for now, though hinted (or teased, to be honest) that one would come later in the year. In Japan, the BOJ said it would continue an easy monetary policy
Fed Chair Janet Yellen’s July proclamation that “the case for an increase in the federal funds rate has strengthened,” was nullified by a weaker than expected August jobs report. Only 151,000 jobs were added, short of the 180,000 forecast by economists and far short of the 275,000 added in July.
Fed Chair Janet Yellen said, in her prepared remarks at the Jackson Hole symposium, that “Indeed, in light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.” The markets did
Despite gold’s stellar performance so far this year, The Financial Times (August 24, 2016) chose to headline a front page article “Gold loses shine as Fed decision looms.” In the Commodities Section, a second piece was titled “Gold heads for monthly drop after investors turn anxious over rate rise and weaker demand.” Regardless gold’s performance,
As stock market indexes fail to punch out new highs, the bulls keep looking for positive developments so that they can keep investors buying stocks. Some stock bulls have noted that one of the bright spots in the US economy has been auto sales, forecast to hit 17.7 million vehicles this year and breaking last
Is the US economy slowing down, which will prompt more Fed stimulus, or is it “dramatically better” as NY Fed President William C. Dudley said in a recent New York Times interview, which will allow the Fed to raise the discount rate later this year? In the first quarter, US Gross Domestic Product rose only
Gold haters–think Paul Krugman–are fond of attacking gold and advocates of gold as money. They prefer digital monies that reside in computers. Nothing physical, such as coins that can jingle in your pockets, just a statement showing how many digital dollars you have “in the bank,” which is really not a bank but a computer.
And, the stock market — using the Dow Industrials — fails to make new highs. The U.S. economy grew at its slowest pace in two years the first quarter 2016, with GDP rising .5 percent, less than half the gain posted fourth quarter 2015. For some time, the U.S. was the shining star among world
As noted in G-20 talks up more deficit spending; Deutsche Bank recommends gold, there were loud cries at the Shanghai G-20 Summit for “a worldwide coordinated effort” to head off global recession. Here are a few more details about the G-20 discussions.
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