I like to see that negativity out there. Gold has gone down quite a bit since the election but if you go back over the last 15 years, gold had a pretty good track record.
It is interesting that the reason that so many people have turned bearish on gold is because they believe there will be more inflation under Donald Trump, that we are going to have larger deficits as a result of the tax cuts, increased government spending and because of the higher inflation, the Federal Reserve is going to get more aggressive and raise interest rates and somehow that increase in interest rates is going to be bad for gold. It is ridiculous! Higher inflation is good for gold!
Inflation will rise much faster than interest rates, so real interest rates are going to fall and that is when gold shines brightest. (Newmont Mining (NEM), Eldorado Gold Corp (USA)(NYSE:EGO), Goldcorp (GG), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Barrick Gold (ABX)
Dec 19, 2016
Will Donald Trump Produce Any Economic Growth?
The Federal Reserve does not seem to believe that Donald Trump is going to do anything to produce economic growth because they were more optimistic last year when they knew that Obama was going to be the President than they are now, knowing that it is going to be Donald Trump.
Dec 16, 2016
The Housing Market Has Been Propped Up By The Fed, Not Ready To Stand Alone
Both the housing market and the auto market have been propped up by the Federal Reserve’s cheap money and artificially low interest rates. These markets may not be ready to stand alone. (Ford (F), General Motors (GM), Tesla Motors (TSLA), iShares Dow Jones US Real Estate (ETF) (IYR), Lennar Corporation (LEN), KB Home (KBH))
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