February 9, 2018 |

Pay Attention

stock-market-crash-crisis copy

The stock market has exhibited enormous volatility in the last several sessions. It started last Friday, with the Dow Jones Industrial Average dropping over 700 points. The sellers were far from finished, however, and the selling resumed full force on Monday. The opening session of the trading week saw the Dow decline by an astounding 1600 points at one point, before rebounding a bit to end down a whopping 1175 points-the largest point decline on record. Tuesday looked as if it might be another brutal... Continue Reading

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February 7, 2018 |

Are Higher Yields Starting to Take a Toll?

decline for stocks

The stock market saw major declines on Friday, as the Dow Jones Industrial Average shed over 700 points. Friday’s sell-off, and weekly performance for the indexes, was the worst in some time. Unfortunately, it could be just the opening salvo by stock market bears, and further declines could be ahead. The current risk-off mentality is likely being fueled by several factors, but rising interest rates are, without question, a major catalyst for declining stocks. On Friday, yields on the benchmark ten year note hit 2.85%,... Continue Reading

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February 2, 2018 |

Don’t Fear Higher Rates, Welcome Them

the stage is set

The U.S. Federal Reserve elected to hold rates steady at its latest policy meeting on Wednesday. This move came as no surprise. The Fed also discussed how it sees the need for gradual hikes going forward, which is also not very newsworthy. Many investors, however, seem to misinterpret what higher rates really mean for the markets. Gold is a common object of discussion when it comes to higher interest rates. The theory, among some investors and some financial “experts” goes something like this: Higher rates... Continue Reading

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January 31, 2018 |

Is FOMO Finally Here?

Stocks have seemingly climbed higher with little effort for some time now. In fact, the stock market has made it look easy. Ultra-low rates, previous QE, increasing corporate earnings-whatever the primary drivers of higher stocks may be, the bull market is not going to continue indefinitely. Stocks have recently been moving higher on the idea of lower corporate tax rates and higher profits, less regulation, the potential for higher wages and other factors. Also at work, however, is another catalyst. Only this catalyst can often... Continue Reading

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January 30, 2018 |

A Double Whammy of Rising Inflation and a Falling Dollar

major hurdles

Investors could potentially be in for a rough ride in 2018, as several key market dynamics are changing. The Fed has been slow to raise rates further-and with good reason- as inflation for some time lagged well-below the central bank’s desired target of 2% annually. The central bank seems to be thinking a bit differently at this point, however, as some key indicators of inflationary pressure have been ticking higher in recent months. The central bank has penciled in three rate hikes this year, but... Continue Reading

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January 26, 2018 |

The Dollar is Getting Weaker

race to the bottom

Gold is seeing prices pop on Wednesday, as the dollar index declines to a 4.5 month low. The dollar index appears to have put in a long-term top at this point, and looks both fundamentally and technically weak. This weakness could potentially send the greenback even lower-dramatically lower-from current levels. The buck is seeing selling pressure today as Treasury Secretary Steve Mnuchin talks about how a weaker dollar is beneficial for the U.S. economy. His comments were made in Davos, Switzerland, at the World Economic... Continue Reading

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January 24, 2018 |

Is the Dollar a Sinking Ship?

without a deal

The shutdown of the U.S. Government over the weekend is likely to dominate the headlines this week. Although it seemed late Friday that a deal could potentially be reached in time, Republicans and Democrats appear to be far from an agreement at this point. Stock investors didn’t seem to be fazed by the potential shutdown on Friday, but that could change in a hurry if both sides of the aisle are not able to make progress quickly. Although the shutdown is not likely to have... Continue Reading

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January 22, 2018 |

Another Reason to Own Gold Now

Weekly jobless claims were reported at 220,000 this week, the lowest reading in several decades. Other key areas of the economy, such as manufacturing and housing appear to be on solid footing while economic optimism remains extremely high. Through all of the recent data and market signals, one thing is clear: Despite still running below the Fed’s desired 2% target, inflation is picking up. Job creation, rising crude oil prices and rising yields seem to back up that notion. The benchmark 10 year note is... Continue Reading

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January 18, 2018 |

Could a Hard Landing be on the Horizon?

Gold stock

There is no doubt that the economy is on stronger footing than it was a decade ago. Whether or not the current path can be maintained, however, is another question entirely. With improvement in the labor market, a stable real estate market and economic optimism at its highest in some time, you have to wonder if the Fed may need to become more aggressive at some point. New York Fed President William Dudley recently commented on this very issue. In an article from Marketwatch.com, Mr.... Continue Reading

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January 15, 2018 |

A Different Perspective on Risk

Washington Gold Bar

Risk and control of it is perhaps the single most important theme for investment success. Without risk, there can be no reward. On the other hand, too much risk can easily wipe out any gains-and more-sending the investor back to square or worse. Like any other issue, risk should also be kept in the proper perspective. Given all of the recent coverage of rising interest rates, it seemed like a prudent time to talk a bit about rate risk as it pertains to gold. It... Continue Reading

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