The housing market is one of the leading indicators of economic activity, and the US market is suffering its longest slump in four years. Sales of previously owned homes fell 3.4% in September from August and were down 4.1% from last year, for the seventh straight month of declines.
Morgan Stanley, a longtime establishment investment house, recently released a report on gold that stated: “We rarely use gold in our asset allocation, but occasionally there are opportunities and currently we see one of them.” Morgan Stanley & Co.’s global commodity strategist has a $1,300 per ounce price target on gold by year end.
David Stockman, Budget Director (1977-1981) under Ronald Reagan, offers unique analyses on today’s economic and political developments. Unlike a lot of analysts, Stockman has a grasp of the economic situation and political developments. He is a bear on stocks and on the economy. Below are links to recent Bloomberg interviews with him.
The stock markets seem oblivious to the Fed’s stated objective of higher interest rates, with some major averages making new highs and other just shy of new highs. However, some segments of the economy are already being impacted by higher rates, namely the housing market. Across the nation, home sales have declined four months in
“The great financial crisis of 2007/08 will be eclipsed. In a nutshell, this time the quantity of new money required will likely lead to the destruction of the “full faith and credit” in the currencies themselves, which until now has been broadly unquestioned by ordinary members of the public.” — Alasdair Macleod
But, a repeal of Dodd-Frank is not without its downside risks and upside benefits for gold and silver investors. The 2010 enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) will be eviscerated when the House passes an amendment to the law. Because the Senate passed the amendment with a bipartisan vote, the House
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
One of the reasons that gold and silver are safe investments is that today central bank printing of paper money is widely accepted. Additionally, there are no limits on how much money central banks can create. The graph shows the balance sheets of the European Central Bank, the Fed and the Bank of Japan. Note