January 12, 2018 |

Things Are About to get More Interesting

Polar Bear

As the stock market has continued its seemingly never-ending ascent, something else has been happening in the background, albeit more quietly: Yields have been rising. On Tuesday, famed bond guru Bill Gross of Janus Henderson and formerly of PIMCO suggested that the treasury market has officially entered bear market territory. With a current yield in the neighborhood of 2.55%, the ten year note yield has broken a 25 year trend line. Gross had suggested back in October that a sustained move past 2.40% on the... Continue Reading

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January 10, 2018 |

Current Signals

Gold Fine

The gold market is off to a great start in 2018, and the current rally in price could have room to run. Aside from watching the market move sharply higher in recent trade, there was another development that could be worth noting: The gold ETF, SPDR GLD, climbed for 11 consecutive sessions before finally seeing a down day last Wednesday. GLD is the largest gold-backed ETF. Why is this worth paying attention to? This would seemingly be indicative of significant inflows finding their way into... Continue Reading

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January 8, 2018 |

Could Inflation Be Lurking Around the Corner?

It’s no secret that inflation levels have been running well below the Fed’s desired target of two percent. Despite stubbornly low inflation levels, the central bank stands ready to hike rates further in 2018, perhaps as many as three times. Does the central bank know something the rest of us don’t? While the conspiracy theorists may be disappointed, the answer is probably not. Inflation has remained below desired levels, and it seems to be a thorn in the Fed’s side. Although inflation reports and other... Continue Reading

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January 4, 2018 |

The Beginning of Something Bigger?

to remain

The gold market is kicking the New Year off right, and the market is showing some very impressive signs of strength. The market has a number of issues that could potentially fuel higher prices in 2018, and outlined below are what could be the three primary drivers of higher gold as the New Year gets started. Dollar weakness: The dollar index just finished its worst year since 2003, declining by some 10 percent. This finish also was the first losing year for the currency since... Continue Reading

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January 2, 2018 |

Changing Geopolitical Dynamics

North korea missile

Recently, it was reported that China was still sending shipments of crude oil to North Korea. Although this may not be confirmed as of yet, it does underscore the potential for increasing geopolitical issues in the months and years ahead. Currently, economic sanctions against North Korea are designed to cut off about 90 percent of the nation’s oil supply. Needless to say, choking off access to energy can cripple a country’s economy, although it remains unclear if the measures will be enough to deter the... Continue Reading

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December 29, 2017 |

Gold Gearing Up For 2018

The gold market has been quietly continuing its recovery from the swing low seen a few weeks ago, and the metal is poised to get the New Year off to a great start. The market has an improving technical posture, and more investors appear to be taking notice. The New Year could be big for the gold market, as numerous market forces could potentially fuel a significant price rise. In fact, overall market volatility could make a dramatic return in 2018, and it seems that... Continue Reading

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December 27, 2017 |

Gold and Bitcoin?

The current Bitcoin and cryptocurrency craze has taken markets by storm. While gold remained relatively range-bound, Bitcoin was moving higher-a lot higher-until hitting the $20,000 market this week. The currency has since pulled back a bit, but it is likely not the end of the run higher. Without offering a guess as to just how high Bitcoin and cryptocurrencies could potentially go, perhaps the bigger question and issue at hand is why these instruments are garnering so much interest. The monetary system has been run... Continue Reading

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December 26, 2017 |

Now is the Time

Economic Indicators

As 2017 draws to a close, now is the time to take stock of your holdings and to plan ahead for the challenges of 2018. Constantly changing market dynamics as well as economic and geopolitical influences necessitate a proactive approach to investing, and there is no better time to get started than right now. The passage of the Trump administration’s tax overhaul could potentially fuel an economic boom, although its effects may take some time to trickle down. With or without increasing economic activity, there... Continue Reading

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December 21, 2017 |

Could a Tax Overhaul Doom Stocks?

Stock Market Panic

If you have ever invested in financial markets before, chances are good you have heard the phrase “Buy the rumor sell the fact.” This is an interesting market dynamic in which a market rallies based on a catalyst such as higher expected earnings, lower rates or new legislation, only to reverse course once that catalyst is actually implemented. Looking at the stock market and its string rise in recent months, you have to wonder if that dynamic will be seen again. Stock strength has come... Continue Reading

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December 19, 2017 |

Another Rate Hike and another Bounce Higher

Gold on the rise Crop

This past week, the Federal Reserve raised interest rates by 25 basis points in a move that was widely expected. The rate hike announcement did not have a significant impact on markets, and stocks actually moved higher despite it. The central bank also stuck to its previous forecast of another three rate hikes in 2018. Investors may not be buying it, however. Although the economy has shown major improvement in many areas, the sustainability of such improvements may be questionable. Then there is also the... Continue Reading

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