Nov 14, 2016

Stock Market, Gold & Bonds

The Dow Jones Industrials Average (DJIA) was up almost 1,000 points last week. The gold market was down 70 dollars on the week, a percentage decline of 7 percent or so. Silver was also down about 5 percent. Gold and silver stocks were down close to 20 percent.

The stock market had its best week since 2011 and the bond market had its worse week since 2013 and it looks like a lot more carnage can come if we really start to break down.

Nov 12, 2016

U.S. Economy: What Trump Is Planning To Do Is Impossible

Back in 1980, America was still the World's largest creditor nation so our bonds seemed like a good risk and they were paying a very high rate of interest to the people willing to loan us the money. Fast forward to 2016, if Donald Trump thinks he can pull a Ronald Reagan, if he thinks he can cut taxes and increase government spending and somehow finance that...that is impossible! And the bond market is just starting to show that. (iShares Barclays 20+ Year Treasury Bond ETF (TLT))

Nov 11, 2016

Bond Market: Explosive Move In Yields In Reaction To Trump

We had an explosive move in yields. Some people are saying, well maybe this is just the bond market reacting to the possibility of higher growth. No! This is the bond market reacting to the possibility of much bigger deficits, huge supply. What Donald Trump is promising to do is going to explode an already enormous budget deficit. (10- year U.S. Treasuries, iShares Barclays 20+ Year Treasury Bond ETF (TLT), 30-year U.S. Government Bonds)

Nov 10, 2016

Trump: The Bond Market Is Giving A Flashing Warning Signal

Donald Trump is intending to increase government spending in infrastructure to create jobs, on national defense to keep us safe, on taking care of the veterans, to build a wall...He is talking about massive increases in spending and at the same time he is talking about substantial cuts in taxes. He wants to cut the corporate tax rate, he wants to cut the individual tax rate. This is something we have not seen since Reagan. Donald Trump is going to run into a brick wall that did not exist at the time of Reagan and the bond market is really giving a big flashing warning signal.

Nov 4, 2016

The Only Way Central Banks Could Hurt Gold Prices

The only way to really hurt gold would be for Central Banks to become aggressive inflation fighters, to really get in front of the curve, to raise interest rates substantially. I do not see any of that happening! (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX))

Nov 2, 2016

Gold: A Down Payment On Much Larger Returns

I think this recent gold (SPDR Gold Trust ETF (GLD)) correction is just a down payment on much larger returns. When the year began everybody was bearish on gold because everybody expected the federal reserve to hike interest rates, not just hike once but begin the much hyped and anticipated normalization process. Because interest rates have been at zero for many, many years and the Federal reserve was beginning to normalize interest rates. What I said at the time was, (A) I did not believe it, even if the Federal Reserve raised interest rates it would not matter because they would never deliver the number of interest rate hikes that were anticipated by the markets.

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