The Debt Bomb is About to Explode in the U.S.

The debt bomb is going to explode in the United States. Artificially low interest rates helped keeping U.S. debt and interest payments contained but it cannot be contained for much longer because long term interest rates and inflation are rising and on such a scenario creditors will keep demanding higher premiums. (iShares Barclays 20+ Year Treasury Bond ETF (TLT), ProShares UltraShort Lehman 20+ Year ETF (TBT), 10- year U.S. Treasuries, 30-year U.S. Government Bonds)

Forex: Commodity Currencies (AUD, CAD)

The Australian Dollar (AUD) has been trading even firmer than the Canadian Dollar (CAD). The Australian Dollar (AUD) bottomed out in January 2016, so commodities (Gold, Crude Oil) bottomed and commodity currencies also bottomed.

Trump: Short Term Fix Will Not Result

If we are really going to make America great again, if we really are going to fix what is broken, we have to go through a restructuring of the economy. That in the short term is going to be painful. On the long run it will produce good results. Trump is promising a quick fix, that things are going to get better just because we have elected him. Unfortunately that cannot happen. (SPDR S&P 500 Index ETF (SPY), iShares FTSE/Xinhua China 25 Index (ETF)(NYSEARCA:FXI))

The Stock Market is Very Vulnerable Here

I think to the extent that we get some of these protectionist type measure it is negative for the U.S. Dollar. It is not going to be a positive like some people think and the stock market and the bond market are very, very vulnerable here. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

A Bull Run For Gold

Both the Federal Reserve and President Donald Trump want a weak currency, a weak U.S. Dollar. That almost always means a bull run for gold (SPDR Gold Trust ETF (GLD)).

Markets: Gold, Silver and Gold Stocks

Gold is up 6 percent so far year-to-date, Silver is up better than 7 percent. Gold stocks (Market Vectors Gold Miners ETF (GDX)) are up 12 percent so far this year. That means that gold stocks are by far the top performing sector in sector. They were also the best performing sector in 2016. (SPDR Gold Trust ETF (GLD), iShares Silver ETF (SLV))