The Wrong Road To Economic Recovery

The economy doesn't need more consumption, it needs more production. Productive employment will stimulate the economy. Printing money and distributing it to non-productive people will not. It will only result in larger trade deficits, a weaker dollar, and higher consumer prices.

The Reasons Behind The Gold Sell-Off

Gold is selling off because traders now believe the Federal Reserve will not be as easy as once expected. While Fed policy is more likely to be much easier than expected, if traders are correct this development would be far more bearish for the stock market than it is for the gold market.

The lack of conviction gold stock investors have in the trade really is amazing. Despite the most positive fundamentals ever for gold, fear is far more pervasive than greed. Imagine what the market will look like when larger gold stock investors actually turn bullish on gold. 

Related trading instruments: SPDR Gold Trust ETF (GLD),Market Vectors Gold Miners ETF (GDX)

Buying The Gold Dips

Today's stock market rout was likely triggered by disappointment that the Federal Reserve was not dovish enough. The Federal Reserve may not be dovish enough to support a stock market bubble, but it's more than dovish enough to support a much higher gold price. Buy the dip!

Supreme Court: The Last Firewall Against Socialism!

The reason Democrats are so worried about a Trump Supreme Court pick is that their entire agenda is unconstitutional. Even if their radical policies are enacted into law a just Supreme Court can strike them down. It's the last remaining firewall to protect America from socialism.

It's Never The Time To Worry About The Deficits

On CNBC, Steve Mnuchin said that given a Covid weakened economy now is not the time to worry about deficits. But before Covid when the economy was supposedly booming, he was not worried about the deficits either.

In other words, it's never the time to worry about the deficits.

Stock Market Correction

Those hoping that a normal stock market correction will create a buying opportunity don't understand the market. A normal correction is much too small to create any real value in stocks. The only opportunity is reckless Fed policy making over-priced stocks even more expensive.