Eliminating The Debt Ceiling

Now they're talking about eliminating the debt ceiling.

Donald Trump has got some kind of gentlemen's agreement going on with the Democrats that, "Hey, let's just get rid of this debt ceiling so that we never have to deal with the fact that maybe it won't be lifted" because the politicians have succeeded in making irresponsibility look responsible because every time there's a threat not to raise the debt ceiling they label the people who don't want to raise it as reckless or irresponsible. They say,  "You have to raise it, America always pays its bills you can't play around with our faith and credit."

The irony of it is we never pay our bills. That's why we have all this debt, I we were paying our bills we wouldn't have to raise the debt ceiling.

Stock Market, Tax Reform

I think the catalyst for the rise in the stock market continues to be the enthusiasm that really started yesterday based on president Trump's announcement that he was close to a deal on tax cuts and that the deal is supposed to be announced sometime before the end of the month.

Now of course, I've seen this movie before. I mean Trump has come out and made a lot of statements about a deal being ready being on the table, gonna happen soon and of course so far every time he has touted this nothing has materialized. 

Yet the markets are not looking at the boy who cried wolf, now they actually believe the President, they think he's serious and one of the things that he's saying that maybe makes this more credible is that he's saying that he's working with the Democrats that if he can't get something done with the Republicans he's already working on a plan with the Democrats and so one way or another we're gonna get this major tax reform.

But of course it's not really going to be tax reform. It's going to be tax cuts based on what the President is saying. We're not going to reform the tax code, we're not going to have a major shift that is going to make the economy more productive. 

The  President has already said that the rich are not going to get a tax cut at all. They may even have a tax hike. So if you're not going to lower the top rate if you're not going to reduce the marginal rate of tax you're really not going to get any economic stimulus because that's where the growth comes from. Where you lower the marginal rate and you may have a situation where people actually work harder at lower tax rates and produce more taxable income.

Gold: Hurricane Related Sell-off Is A Buying Opportunity

The smart money is taking they the other side on this trade. They are buying the gold on this dip buying the gold stocks on this dip. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), Barrick Gold (ABX), Newmont Mining (NEM), Goldcorp (GG))

Foreign Stocks Are Outperforming US Stocks

At this point it's the people that are in the US market that are underperforming the people who are invested outside the US market. (iShares MSCI Emerging Markets Index ETF (EEM))

US Dollar: Worst Year Since 1985?

The US Dollar had a substantial rise based on the expectation that the Federal Reserve would be able to normalize interest rates and unwind its massive balance sheet plus a general belief that the Fed's experiment had actually succeeded and that the economy was in better shape as a result.

So the dollar kind of rode that rally and now I think it's starting to surrender those ill-gotten gains. The dollar is on pace for its worst year since 1985. We just finished the month of August, a down month for the US Dollar. It's been down six months in a row and so the weakness in the dollar is one of the reasons that the price of gold has 01:25 been rising.

The Gold Market Gold Continues to Move Higher

The gold market gold continues to move higher ever since breaking out about $1,300. The price of gold is now above $1340 so we've tacked out another 40 dollars. 

I don't think the shorts have covered yet. I think they're still holding and hoping I don't think we've had the long's getting too excited about this breakout above $1,300 it may need $1,400 we need to move up a whole new handle before we really get the big short covering. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ))

Gold: $1,300 Is Now Support

Gold to me still looks pretty strong. We broke out above $1,300, we didn't have a huge surge but we held 1,300 and we didn't go back below it. We've held here all week and to me 1,300 is now the support right what used to be resistance is now support. Where is the next resistance? I would guess up around 1375-ish which I think was about the high last summer. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), Barrick Gold (ABX), Newmont Mining (NEM))

Video: Gold Outlook

Peter Schiff talks gold and precious metals.

Gold & Gold Stocks (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX))

I think now that we have cleared out that $1,300 resistance there are a lot of people that thought there was no upside in gold, well they're about to find out just how much upside there was.  I think of course even bigger moves are coming in the gold stocks. (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX))

Gold Goes Through 1,300 USD

We've been flirting with that $1,300 level all year, I've been talking about all the resistance that was up there and every time the price of gold got near $1,300 it was met with tremendous amounts of selling. There was a lot of supply but as I've been saying the demand was building, this was a coiled spring we continued to see more and more buying beneath the market and the channel was narrowing the distance between the $1,300 resistance and the support kept getting narrower and narrower and I said I was looking at it and I thought it was only a matter of time before we exhausted all that supply and broke through that $1,300 level,  both a psychological level and a level with a tremendous amount of selling. We finally did it!

Foreign Stocks Are Very Cheap Relative to US Stocks

If you want to invest in stocks do what I'm doing. Invest internationally, invest in foreign stocks. The valuation gap is enormous you've never had foreign stocks so cheap relative to two US stocks. (iShares MSCI Emerging Markets Index ETF (EEM), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ))

Video: Copper versus Gold

Peter Schiff discusses investing in Copper versus investing in Gold.

The Big Story in the Market: Continued Weakness in the US Dollar

Let me get to what's been going on in in the market. The big story in the market is the continued weakness in the US dollar.

Remember the Dollar Index rose about 6% between the election of Donald Trump and the inauguration day. The reason for the rally was the optimism surrounding all the economic growth that we were going to get as a result of tax cuts, deregulation, all this stuff that was going to happen. 

 Of course all this was also going to result in a tighter Federal Reserve because we were now going to have fiscal stimulus and so we weren't going to need as much monetary stimulus. Now remember at the time I argued that that was nonsense and of course so far I'm being vindicated because here we are were six months into the Trump presidency and nothing has happened.

Video: An Interview With Peter Schiff

"When I started buying gold in 2001 it was under $300 an ounce, it rose as high as 1900 USD/ounce by 2011. I started buying oil when it was at $20 a barrel or less and went up to 150 dollars a barrel."

Gold: A Short Squeeze Is Coming

Given the weakness in the US Dollar and the weak economic data, Gold should be moving up a lot more than it is. I still think that there's still a lot of overhang there's still a lot of short selling going on but I smell the mother of all short squeezes coming. (SPDR Gold Trust ETF (GLD), Market Vectors Junior Gold Miners ETF (GDXJ), Market Vectors Gold Miners ETF (GDX))

Markets: Australian Dollar, Canadian Dollar, Foreign Stocks

The Australian dollar (AUD) is very close to a two-year high it's at more than a one-year high as is the Canadian dollar (CAD) which was very strong on the week on the back of a rate increase by the Bank of Canada but the US dollar fell across the board, obviously foreign stocks better than US stocks given the tailwind that they have from appreciating currencies.

Economic Data Continues To Come Out Weaker Than Expected

Economic data continues to come out on balance weaker-than-expected. The Atlanta Fed today notching down its estimate for the second quarter GDP to 2.6 percent. This is the lowest the Atlanta Fed has been since they've been making forecasts on the second quarter. I assume that they're going to continue to ratchet that bar lower and lower as more economic data comes out.

Some People Are Trying to Keep the Price of Gold From Rising

Every time gold is about to breakout someone comes in and sells a tremendous amount of it all at one time. So, obviuosly there are some headwinds, some people are trying to keep the price of gold from rising for whatever reason but they will not be successful long term. Gold are going to rise as the US Dollar weakens. (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG))

The Euro Is Not My Favorite Currency

 The Euro is not my favorite currency. I do think that there are other currencies that are ultimately going to enjoy even bigger gains against the US Dollar than the Euro which means those other currencies will also be gaining against the Euro but you have so much short interest in the Euro so many people betting on the demise of the eurozone and look I still believe that the euro zone is going to fall apart it's just not going to fall apart as soon as a lot of people thought. 

Euro Currency: This Move Is Just Beginning

The US dollar we're now trading just below 1.1450, remember wasn't too long ago the euro was down around 1.05 or so and everybody was talking parity with the dollar, all the traders were short the euro and I was saying that the euro was bottoming, that the euro is going to rise and the rise is just now beginning and I think there's a lot more to this move, of course other currencies are also following the euro's lead.

The Euro Is Surging Against The US Dollar

The US dollar continued its decline, the dollar index falling to a fresh eight-month low. The dollar is being led lower by a surging euro. The euro is actually at a 12-month high against the US dollar. 

Draghi Sends Euro Higher, US Dollar Lower

The US Dollar was down sharply and broadly led lower by a rally in the euro currency. The catalyst for the euro rise were some statements by Mario Draghi early in the morning basically where he said that he thought the downward pressures on inflation were transitory so a somewhat hawkish stance on inflation and the markets took that to mean that QE will come to an end sooner rather than later.

Gold: Putting In A Significant Bottom

I think the significant thing though for the US Dollar and gold is that the dollar is in the process of putting in a very significant top and the flip side of that is that gold is in the process of putting in a significant bottom. I think the catalysts for breakdowns in the dollar and breakouts in gold is going to be some realization, some capitulation on the part of the markets, the Federal Reserve to square perception with reality because you know the economic surprise index is at the lowest that span since 2011. People have been looking forward to good news and they've been disappointed constantly. (SPDR Gold Trust ETF (GLD), iShares Silver ETF (SLV), Market Vectors Gold Miners ETF (GDX))

Gold: The Opposite of a Bubble

Gold, I think is getting ready again for a move in the opposite direction (higher) but you have the opposite of a bubble in gold. Certainly if you look at the United States, Americans are buying less gold now than they've done you know since the bull market began in 1999-2000. (SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ))

When Markets Are As Extended, They Can Top On Anything

We had a bit of a turnaround Tuesday today all of the major US stock market averages were higher in the morning and we closed broadly lower on the day. In fact the Dow Jones Industrials Average (DJIA) did make a new all-time record high this morning before closing down about 60 points so though the decline in the Nasdaq was a little bit greater. We had a 0.82% decline in the Nasdaq, the Dow was only down by about 0.3%. The S&P 500 Index though had a bigger decline as it was down about 0.7%, so the broader averages took a bigger decline than did the Dow.

Now, I don't think the technical damage is extreme. Yes, we made new highs and close lower but it really wasn't an outside day, I mean we didn't close below Monday's lows for example which would have been an outside reversal but we'll see. You know, when markets are as extended as they are, of course, you know, they can top on anything.

Investing: How To Profit From The Trump Train Wreck

Peter Schiff speaks in Vancouver at the International Metal Writers Conference on how to profit from the Trump train wreck. (Market Vectors Gold Miners ETF (GDX), SPDR Gold Trust ETF (GLD))

Housing Starts Declining, Trouble Ahead?

We had an unexpected big drop in housing starts. This is the third month in a row that the starts are down but not only where housing starts way down but building permits were also way down so that means that this trend is likely to continue. The last time we had three consecutive monthly declines it was in 2009. What was going on in 2009? Oh, the greatest recession since the Great Depression! (KB Home (NYSE:KBH), Lennar Corporation (LEN), SPDR S&P Homebuilders (ETF) (XHB), D.R. Horton (DHI))

A Hawkish Federal Reserve

We actually got a hawkish hike not only did the Federal Reserve raise rates but they did nothing to dampen expectations for future interest rate hikes. In fact Janet Yellen in her prepared remarks and in the press conference that followed was very upbeat, very optimistic on the economy not worried about anything and no longer talking about the need for some kind of confirmation that prior economic weakness was transitory. She thinks that it's clear skies as far as the eye can see.

Big Reversal In Bitcoin

It wasn't just the stock market that had big reversals I guess it was the crypto currencies as well particularly Bitcoin. You know, I mentioned the last couple of times that I was talking about Bitcoin and the kryptos, the shrinking market share that Bitcoin had in the crypto world and that continues right now. The market cap of Bitcoin is now down to about 40 percent of the total market cap of all the crypto currencies.

Gold Stocks: Performing Much Better

Gold stocks continued to trade much better than they have been, I mentioned that on my last podcast even though gold was down 11 dollars on the day, gold stocks were down but not that much, down just a little bit. (Newmont Mining (NEM), Barrick Gold (ABX), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), Goldcorp (GG))

Market Vectors Junior Gold Miners ETF (GDXJ) Has Some Catching Up To Do

The smaller gold miners if you look at the  Market Vectors Junior Gold Miners ETF (GDXJ) which is an index of junior gold mining stocks,  I I think this thing still has to move up 30 percent or so to get back to where it was when gold was lower than it is right now earlier this year.

Gold Hits A New High For The Year

The price of gold has been creeping higher and higher ever since it had that correction and by the way I think I did a pretty good job of nailing the correction, the fact that I said it would be a very shallow correction and I'm pretty sure that I nailed the the bottom. I came on and I did a podcast when it looked to me like the gold stocks were confirming an end of the correction in gold and gold did rally and initially gold stocks rallied to but then the gold stocks came back down and almost retested their lows, didn't quite do it. But the price of gold never came back down, the price of gold kept rising and rising and now finally yesterday the price of gold hit a new high for the year. (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD))

Currency Markets: Monetary Policy Divergence (EUR/USD)

I think that even if the Federal Reserve hikes again in a couple of weeks they're nearing the end of their tightening cycle and you know even though the Federal Reserve claimed to be data dependent and they hike interest rates despite the fact that the data was much weaker than they thought, I think the markets are starting to look beyond the hikes to the cuts. I think we're getting ready to start a new easing cycle and on the other side of the Atlantic the ECB is getting ready to end their easing cycle and to begin tightening so I think the currency markets are more looking at that policy divergence than whether or not Trump is going to get any anything through Congress.

Gold & Gold Stocks Will Move Higher

When the Federal Reserve raises rates in June, if they raise rates in June, Gold is going to take off. If they don't raise interest rates in June then it's going to explode even higher and of course you know you're going to see an even bigger move in the gold stocks. (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD))

Bitcoin Is A Speculative Asset, A Bubble

I don't think something like Bitcoin is ever going to succeed at being money. It's not going to be used as a medium of exchange as a store of value but what it is now is a speculative asset. People are buying it, it's appreciating and the people that own it on paper are making money and some of them are actually cashing out and making real money but the majority of the paper wealth that's been accumulated is still sitting there. But you do have people that are coming in and buying at these high prices. Ultimately the bubble is going to pop and the things are going to come crashing down, the question is how much bigger is this bubble going to get? Have we already seen the peak or is this going to be the biggest bubble of all time?

The U.S. Dollar Index May Drop To 60

The U.S. Dollar Index closed at a new low for the year solidly below 97.00.  We closed at 96.67, I think the key level is 92 which is the low from May of last year but once we break through that and I think there'll be some support around that level, but once we break through 92 we're making room for 80 and that is a pretty big drop. I think that can happen in a short period of time. 

Probably, of course, 80.00 is not the bottom because 70 was the low in summer of 2008 but then you know the dollar got Saved by the Bell by the financial crisis. Ain't going to happen again the next crisis is the US Dollar so we're going to take out 70.00, we're going to go to 60.00 and then we are below 60.00 I think is when we're going to have a crisis. Now who knows where gold is going to be by then, I think gold (SPDR Gold Trust ETF (GLD)) is going to be much much higher.

The Trump Trade Unraveled A Bit

The Trump trade unraveled a bit. Remember early in the Trump trade you had a strong dollar the US Dollar has surrendered a hundred percent of its gains post Trump's election and so year-to-date even though the S&P 500 Index is up, priced in gold the S&P 500 Index is actually down. And if you compare the US stock market to other stock markets around the world the US stock market is one of the worst performing markets in the world so it doesn't sound like the Trump trade is working it sounds like the trades that are working are buying gold and buying foreign stocks. (SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index ETF (SPY), iShares MSCI Emerging Markets Index ETF (EEM))

Gold Stocks: Investors Are Not Believing In The Gold Rally

Gold (SPDR Gold Trust ETF (GLD)) continues to rise. It was up again today (yesterday). This is the highest gold has been since, I think, mid April we got above 1270.00 intraday, and we closed just a hair below it. 

But continuing the trend gold stocks were down. I think that Market Vectors Gold Miners ETF (GDX) was barely positive today (yesterday), the Market Vectors Junior Gold Miners ETF (GDXJ)  was down again. 

So gold stocks continued to trade weak in the face of rising gold prices and again what this has been telling me because this has been going on now for quite some time, is that the investors do not believe this rally because if they believed it they would be bidding up gold stocks.

We Have A Reverse Bubble In Gold

Big banks simply pursue their own self-interest and certainly Wall Street does not want the price of gold going up they want the price of stocks going up, they want the price of bonds going up that's where they generate all their fees so they have a vested interest in being negative gold. 

But it's also a kind of a self-perpetuating prophecy if they keep selling into the rallies and you have so much gold that trades in paper markets where it's not real, you have people buying gold from people who don't even have it and they're selling gold they don't own to people who don't want it but you have this huge paper market and there's a lot of selling pressure there. 

But I think ultimately the price of gold is going way up and the fact that maybe it's suppressed maybe it's intentional maybe it's just a result of people pursuing what they think is right but all bubbles are like that. You had bubbles in the dot-coms, you had bubbles in the housing market. 

This is almost like a reverse bubble in gold. We have a bubble in fiat currencies, we have a bubble in the US Dollar and when that bubble pops, those currencies are going to crash and you're going to see the collapse in the price of gold because the price of gold rising will be the collapse of the fiat currencies.

Trump: Tariffs On German Cars?

If they're going to slap tariffs on cars made by Germans it's because the government is trying to say we want a different outcome than the outcome that the free market is determining. In the free market Americans are choosing to buy these German cars, we don't want them to make that choice we want to alter the free market by artificially raising the cost of buying a German car relative to the cost of buying a different car. And now we have a different outcome not the outcome that would be determined by the free market but the outcome that is determined as a result of government intervention. (General Motors (GM), Ford (F), Tesla Motors (TSLA), BMW)

Markets: US Dollar, Gold and Interest Rates

If the Federal Reserve doesn't raise interest rates in June it is going to shock the markets. In fact I think the US Dollar is poised to decline even if the Federal Reserve raises interest rates. I think gold (SPDR Gold Trust ETF (GLD)) is poised to rise even if the Federal Reserve raises interest rates but if it doesn't obviously those moves will be even bigger because the markets are completely prepared for a another hike.

U.S. Economy: Recent Weakness Likely To Persist

The economic data that has come out recently including this week has been pretty bad on balance in fact the data that we're getting confirms to me that rather than being transitory the weakness in the first quarter is likely to continue.

Markets: Gold, Silver, US Stocks

So far in 2017 the S&P 500 Index (SPDR S&P 500 Index ETF (SPY)) is up just under 7 percent but the price of gold (SPDR Gold Trust ETF (GLD)) and silver (iShares Silver ETF (SLV)) are up about 7.5%

Now despite the fact that both precious metals and the US stock market have performed about the same thus far in 2017, Americans are rushing to buy US stocks yet they're completely ignoring precious metals. This despite the fact that the Dow Jones Industrials (DJIA) or the S&P 500 Index (SPDR S&P 500 Index ETF (SPY)) is at an all-time record high and the valuations are clearly in bubbled territory. Yet when it comes to gold and silver even though they're doing well this year, gold prices are about 30 percent below their peak price in 2011 and silver is better than 60 percent below its peak price. 

So despite the fact that gold and silver are outperforming the S&P 500 Index (SPDR S&P 500 Index ETF (SPY)) this year they have a much further way to go to get back to their highs.

US Dollar: The Decline Has Just Begun

The US Dollar continues its losing streak. The US Dollar Index was down for the 8th time in nine days. The US Dollar Index actually traded below 97 for the first time since Donald Trump was elected President, so we have wiped out 100 percent of the ill-gotten dollar gains that were racked up in the wake of that victory. and if you remember when the dollar was rallying as a result of the Trump victory I said it was a sucker's rally that it was a head-fake rally and sure enough that's exactly what it was but the US Dollar decline has only just begun.

SALT Conference: Gundlach on Stocks

His conclusion was that the US stocks are very expensive and that people should sell US stocks and invest in foreign stocks. In particular Gundlach likes the emerging markets. He was also very bearish on the dollar saying the same kind of stuff as me saying that the crowd is wrong, that this is a crowded trade (that the US Dollar is going to go up) because the Federal Reserve raising rates is wrong.

Markets: Trump Scandal, A Crash In Brazil

So this should rattle confidence as should the drop in the stock market if it continues. But despite that this drop is not very large, I mean look at what's happening in Brazil.  The Brazilian market is getting obliterated, it's crashed, I mean you got a lot of these Brazilian stocks today are down 10 to 20 percent based on a political scandal in Brazil where they they have a recording of the president of Brazil offering a bribe and they've got that on audio recording. 

The market is crashing because they're calling for resignation or impeachment there now of course it's the same problem here although I guess they've got a better case against the Brazilian president.

This shows you what can actually happen with a market that's smaller when everybody wants to get through the same door at the same time, the liquidity is not there and prices collapse.

The same thing could eventually happen to the United States but of course if we had a drop today like they're experiencing the Brazil the Federal Reserve would be out there, they would be cutting rates they would be telegraphic QE4 they would be doing whatever they could to try to reverse the decline in the market. (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ), iShares MSCI Brazil Index (ETF) (EWZ))

Video: Retail Stocks Bloodbath

The retail bloodbath. Retails stocks have been hit hard recently. (Kohl's Corp (NYSE:KSS), Nordstrom Inc. (NYSE:JWN), Macy's Inc (NYSE:M))

Stocks: The Retail Apocalypse (JCP, JWN, KSS, M)

Let me get into what I want to talk about. First of all it's the retail apocalypse which I have been talking about that from my perspective and not just my perspective, I think in reality the retail sector is in worse shape worse shape today than it was in 2008 during and immediately following the financial crisis.

And you know we got a lot of bad news from the retailers this week including J. C. Penney Inc (NYSE:JCP),  and Nordstrom, Inc. (NYSE:JWN) horrible sales from these companies and we had other retailers earlier in the week that came out with with bad news as Kohl's Corp (NYSE:KSS) department store.

If you look at some of the stocks like Kohl's Corp (NYSE:KSS),  trading at $36.50 - that stock was at $75-80 in the summer of 2015, so it's down 60 percent or so.

Dillard's which is at a 52 week low at just under $47 that was over a $120 more than a 50% decline.

Macy's Inc (NYSE:M) was down another 3 percent today, a new 52 week low. Macy's Inc (NYSE:M) is at 23.60 and Macy's Inc (NYSE:M) was like a $70 stock in the summer of 2015.

These are huge markdowns for these retailers.

Gold: Holding On To Some Key Support

The last time I was talking I thought gold looked really good short-term on the chart,  I thought it looked like it was going to go up to 1300. Instead it went the opposite way, it went down towards 1200. Well it didn't get that low, it's just below 1220.

But you know it shows you that you know technical analysis doesn't always work. You know you're not just going to automatically get rich because you're looking at a chart. I thought the weak economic data would be a catalyst for gold. We got the weak economic data but gold went down anyway.

Now, it still looks like it's holding on to some key support. Gold is still doing well this year it's still beating the US stock market considerably this year as is just about every other market in the world I mean the out performance that I've been talking about so far this year between foreign develop markets and especially emerging markets is widening continuing to gain on the US market. (Market Vectors Gold Miners ETF (GDX), SPDR Gold Trust ETF (GLD), Market Vectors Junior Gold Miners ETF (GDXJ), Newmont Mining (NEM), Barrick Gold (ABX))

The U.S. Economy Will Not Grow At 3% This Year.

Wilbur Ross came out this week and admitted that the US GDP is not going to grow at 3 percent this year I mean that's why they pay this guy the big bucks right I mean you don't need to have that much information you know to be that's smart to figure out something that's that obvious but they finally admitted that the economy is not going to grow by 3 percent this year in fact it may even be in a recession this year so it's not only not going to grow by 3 percent it may not grow at all.