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
Just looking at the increased number of “HELP WANTED” signs hanging in business windows and the rising prices on restaurant menus, I suspected that inflationary pressures were building. Then I validated my suspicions by looking at Bureau of Labor Statistics data.
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