Posts On Economic and Geopolitical News

December 11, 2017 |

Will Added Debt Finally Become Too Much?

Regardless of what you may think about the Trump administration’s tax reforms, the current levels of U.S. debt are not sustainable. With over $20 trillion in debt already, the nation could potentially add to the deficit as it lowers tax revenues. The argument for such a move is that increased economic activity and production will pave the way for that deficit to be brought back under control. Even if that proves to be the case, the problem with debt is that not only does the... Continue Reading

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December 4, 2017 |

Just One Explanation for the Next Stock Market Crash

how quickly things can change

The stock market has been rallying for years now, and the bull market in equities is about a decade old at this point. In fact, the market has climbed some 250% since 2009, and as of right now there are no telltale signs of a downturn-yet. While investors may be offered numerous explanations for the heights currently being seen in the stock market, the many years of low interest rates along with massive QE have certainly played a role. Investors have seemingly turned their attention... Continue Reading

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November 29, 2017 |

Yield Curve Playing a Role

busy week

The gold market is seeing some strength to begin the new trading week following the Thanksgiving Holiday shortened week. Some of the primary factors for gold’s recent strength are at work today, including a weaker dollar index and flattening yield curve. The dollar is losing ground as investors deliberate the confirmation hearing for new Fed Chief Jerome Powell as well as the potential for a tax deal actually getting done. The dollar chart is not pretty at this point, and the currency could be eyeing... Continue Reading

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November 24, 2017 |

The Bubble is Getting Bigger

According to Investopedia, a bubble is “an economic cycle characterized by rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior. When no more investors are willing to buy at the elevated price, a massive selloff occurs, causing the bubble to deflate.” According to Wikipedia, a bubble is defined as “trade in an asset at a price or price range that strongly exceeds the... Continue Reading

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November 17, 2017 |

Why Now May be the Time to Exit Stocks

Herd Mentality

Stocks have had a great run, no doubt. Since bottoming out in the aftermath of the financial crises of 2008/2009, stocks have gained an enormous amount of value. In fact, recent months have seen not only increasing stock market exuberance, but also more and more cautionary tales. The herd mentality is alive and well in stocks, and with each fresh all-time high, more and more investors are getting sucked in-or sucked back in. Markets have an uncanny way of pulling in every last investor before... Continue Reading

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November 15, 2017 |

Put That Old 401k to Use

gold-egg-icon

The amount of people that leave an employer and simply let their employer sponsored 401k plan sit and rot is truly astounding. Once an old 401k plans begins to sit, it becomes susceptible to erosion from annual fees and a lack of diversification. Not to mention the fact that there is no longer funds flowing into the account on a regular basis. Leaving an old 401k to simply sit is a colossal waste of time, capital and resources. Not only may the account bleed money... Continue Reading

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November 13, 2017 |

Gold Could Shine Bright in 2018

The gold market has been relatively range bound for weeks now, could this sideways action simply be the calm before the storm? The market has been leaving some important clues that could point to higher prices. Any significant dips in the price of gold have been met by willing buyers. Despite stocks making fresh all-time highs, the gold market has not cracked, and the bears have been unable to overcome buying pressure. What could potentially lead to higher gold in the months ahead and in... Continue Reading

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November 1, 2017 |

Is Gold Sending a Key Signal?

just the beginning

The gold market has not given up much ground in recent days as the dollar index saw a significant bounce. In fact, the gold market has tested support levels in the mid $1260’s and has seen buying interest uptick and a bounce several dollars higher from that level. While this may, at a glance, appear to be nothing more than standard market “noise,” it could also be indicative of underlying strength in the gold market and perhaps even a split from the market’s correlation to... Continue Reading

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October 30, 2017 |

3 Reasons to Add Gold to Your Portfolio Right Now

Gold Stone

When many investors think of investments in gold, they think of higher gold prices. Investors have been thoroughly trained to think of investments in terms of if I buy XXX at $10 and sell it later at $20, I have made a 100% return. Now, let’s be clear. There is nothing wrong with buying low and selling high. And who wouldn’t want to make a profit on an investment. Gold, however, offers numerous intangible benefits in addition to the possibility of higher prices. Many of... Continue Reading

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October 26, 2017 |

Is Gold Waiting on the Fed?

Federal Reserve

Price action in gold recently has seen some significant whipsaws. Given the numerous bullish issues that could serve as the backdrop for a sustained rally higher, many investors may be wondering what might be driving the current selling pressure and volatile price action. Could it be the Fed? The Trump administration has been moving closer to a decision on who the next Fed Chair may be. Although current Chairwoman Janet Yellen may still be in the running, rumor has it that President Trump is leaning... Continue Reading

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