The big story continues to be the bear
market rally that has been going on in
the US dollar the US Dollar Index today
closed above 93 the low this year was
just above 88 so we've risen about 5% so
far in the US Dollar Index from the lows.
Is Gold Being Manipulated?
May 11, 2018
May 10, 2018
Federal Reserve: Shrinking The Balance Will Have Consequences
When Alan Greenspan took over the Federal Reserve in 1987, its balance sheet was at about $200 billion. A few years ago, it reached $4.5 trillion. Shrinking it will have consequences.
Related trading instruments:
- SPDR S&P 500 Index ETF (SPY)
- SPDR Dow Jones Industrial Average ETF (DIA)
- iShares Russell 2000 Index ETF (IWM)
- Nasdaq 100 Index ETF (QQQ)
May 8, 2018
Inflation: The Danger To Bondholders
How comfortable
are bondholders going be when inflation
is above 2 percent when they're barely earning
2 percent on their bonds now?
I mean you're not
even getting 3 percent on a 10-year Treasury
right now, you're getting around 2.95.
Well, if
inflation is above, let's say
inflation is two and a half, well you're
getting two and a half percent inflation
if your yield is only 2.95 you're not even getting 50 basis
points. But of course after taxes you're
losing money because the Treasury bond yield
is not tax-free. The federal government
still taxes you on the money you earn on
Treasuries, so after taxes if you're
getting a two point nine five percent
coupon if there's two and a half percent
inflation you are losing money.
May 7, 2018
Federal Reserve: Willingness To Tolerate Higher Inflation
I want to talk about what happened with
the Federal Reserve this week because I think that
is the most significant news of the week. In fact, I think it's the Federal Reserve's statement
on Wednesday and the comments from today
that's the real reason we had the 300
plus point rally in the Dow Jones Industrials Average today that's
why we had the 400 plus point turnaround
in the Dow on Thursday. I think it's all
about the Fed and its willingness to
tolerate higher inflation.
May 4, 2018
Are Rising Rates Bullish For The US Dollar?
I know people say that rising
interest rates are good for the US Dollar.
That's rising short-term interest rates
which in theory are good for the dollar
not rising long-term interest rates.
Gold & Gold Stocks
Gold continues
to pullback. Remember we got above 1350
briefly and we couldn't break out and
now here we are going back down to 1300
but one
thing that looks good to me
are the gold stocks.
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