December 13, 2017 |

Be Ready for the Rebound

on the way

Gold has been on its heels in recent trade, as a number of factors have been working against the metal. Higher stocks, the possibility of a tax deal being made and a lack of any fresh bullish news have all likely played a role in the metal’s lackluster performance. The upcoming Fed meeting is also possibly taking a bite out of the market as well, as investors get ready for another 25 basis point hike from the central bank. A rate hike seems like a... Continue Reading

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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 7, 2017 |

Isn’t the Whole Idea to Buy Low and Sell High?

Gold Coin Plant

When it comes to the gold market, perhaps the old saying should be changed to “buy low and sell high-if ever.” That is likely the mentality behind gold investors at this point, as the yellow metal remains stuck in a trading range. The gold market has some issues working against it currently. Higher stocks, a stronger economy and overall robust appetite for risk are all playing a role in the market’s current lack of upside follow through. In the absence of any fresh, bullish catalyst,... 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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December 1, 2017 |

Don’t Be Fooled

It seems that everywhere you look these days, people are talking about how well the economy is doing. In fact, recent GDP data does point to further economic strength, and the Fed has even stated that it still plans on moving forward with additional rate hikes. Stocks continue to reach fresh all-time highs, and investor appetite for risk remains quite robust. There comes a time in every bull market, however, when investor complacency reaches levels that warrant a significant correction or even reversal in the... 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 27, 2017 |

Watch Rates for Higher Gold

Rally

When it comes to the notion of higher interest rates, most investors automatically, and mistakenly, assume that higher rates equates to lower gold prices. Given the past decade of ultra-low rates and QE, however, such a correlation could actually have the direct, opposite effect of what many assume. The benchmark 10 year note could possibly hold the keys to substantially higher gold prices in the months and years ahead. That’s right: A higher 10 year yield could actually boost gold rather than drag it down.... 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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