Recently a client wrote: “In 2004, I started buying gold and silver because of increasing US debt, thinking that inflation would come about and the dollar would suffer. Now David Stockman (former Budget Director under Ronald Reagan) forecasts imminent doom for the stock and the bond markets. And, I agree that it will most likely
Marc Faber, famed investment advisor, fund manager and publisher of The Gloom, Boom & Doom Report, noted in his October 2017 issue that the Fed’s announcement about implementing quantitative tightening has depressed precious metals and mining stocks. He then added, “I shall use the current weakness to increase my position in physical precious metals.”
Several renown investment advisors are calling a bubble in stocks. Yet few Americans seem to care what people with hugely successful track records are saying. Stocks are going up, why not get on board?
David Stockman, via his Contra Corner, for months has warned that by late September there would be a debt ceiling crisis and that the Treasury would run out of money, causing segments of government to shut down. He further proclaimed that a political storm in Congress would ensue and that the stock market would be
The North Koreans are now believed to have developed a hydrogen bomb, hundreds or even thousands of times more powerful than the atomic bombs dropped on Hiroshima and Nagasaki. Further, North Korea has exhibited the capability to launch intercontinental ballistic missiles, which could deliver their bombs.
Famed investor Jim Rogers recently granted a video interview to a Singapore gold dealer. The video, less than 15 minutes, is worth the time as Rogers is one of the few well-known billionaires who publicly advocates owning gold (although the number is increasing).
Fred Hickey, whose stock market and gold predictions I’ve written about before, sees the stock market on precarious ground. He reminds investors that the Fed kicked off this bull market in stocks and bonds eight years ago with a forecast that massive money creation would “lift asset prices and generate a wealth effect,” which then
There are many dangers–not to mention moral issues–of money created out of “thin air.” One of the dangers is that it distorts the markets and results in bad investments during “booms,” which inevitably turn to “busts.” During the busts, the bad investments wash out. Another is that it is easy to use. The economy slows,
Gold and silver prices were hammered this morning, gold down $20 at its low, silver down $.60. Both recovered only slightly. It is no coincidence that the metals dropped in what is one of the slowest commodities trading days of the year, tomorrow being the 4th of July with most bullion house traders in the
In Thursday’s post, I noted that central banks are adding approximately $2 trillion a year to the world’s money supply. Most of that freshly-created money goes into government bonds. However, some of it goes into equities. That’s right, stocks, like those traded on the NYSE and the NASDAQ. The Swiss National Bank and the Bank