Monthly Archives - March 2019

A Perfect Storm Is Taking Shape in Financial Markets: Are Your Assets Safe?

The past week has brought something that investors everywhere had been fearing: an inversion of the yield curve. While the spread between 10-year Treasury bonds and 3-month Treasury bonds had been growing smaller and smaller every month, the yield on the 10-year remained higher. But last week the Fed’s decision to end its balance sheet tightening provided the impetus that markets needed to drive 10-year bond yields down below 3-month yields, and even below 1-month yields. As long as the [...]

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Gold price set to break out in April

Forbes: Gold Analysts Say Gold Price Set for Early April High

Original Forbes article published on March 24, 2019. If you’re looking at investing in gold to protect your retirement assets, you’re likely in it for the long haul. But that doesn’t mean that you’re oblivious to moves in the price of gold. After all, you want to buy when the gold price is as low as possible and sell (when you want or need to) when the gold price is as high as possible. While technical analysis of gold’s price movements [...]

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3-month vs. 10-year Treasury yield spread

Warning: New Data Indicates A Recession Is All But Certain

Market watchers have been looking for months for signs that a recession is on the horizon. Despite all the negative economic news, from a weak housing market to falling job growth to decreased international trade, stock markets still remain at historically high levels. But now investors have the indicator they need to know that a recession is only months away: an inverted yield curve. The yield curve is the curve that results when interest rates on various maturities of government [...]

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Google Pay to allow gold purchases and sales in India

Google Plan to Integrate Gold With Google Pay Could Lead to Gold Demand Surge

While millions of investors understand the importance of gold as the ultimate money, they also understand that governments everywhere make it difficult to use gold as money. Until restrictions are lifted gold will have difficulty in reclaiming its monetary role. But the future of gold as money will be digital, with consumers being able to use gold-backed digital currency to make purchases. That could be one step closer to reality now that Google is introducing an option for Google [...]

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More quantitative easing on the way

How Long Until QE4?

The Federal Open Market Committee’s (FOMC) meeting last week was nothing less than earth-shattering in terms of its ramifications for financial markets. While many analysts had thought that one rate hike this year might be within the realm of possibility, the Fed all but shut the door on that happening. More importantly, the Fed indicated that it not only would stop drawing down its balance sheet but would even start increasing it in the near future. Does that mean [...]

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Now Is the Time to Protect Your Retirement Portfolio Against Recession Risk

Have you ever had a nagging feeling that you need to do something, but you keep putting it off? And then by the time you get around to doing it, you’re too late and missed the opportunity? That’s how many investors felt during the 2008 financial crisis. Even if they understood that the housing bubble was bursting and that the economy was set to enter a tailspin, many waited until it was too late to do anything to protect [...]

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Gold price set to rise

CNBC: Low Gold Price Makes Buying Gold Right Now a Good Opportunity

Buy low and sell high is what most investors want to do. And right now may be the right time to buy gold before it starts to climb again. Last year provided a great opportunity for investors to add to their gold holdings, as the yellow metal dipped at one point below $1,200 per ounce. But a significant recovery late last year into the early part of this year saw gold climb towards $1,350 before retrenching. With $1,300 looking [...]

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Bad economic data continues to pour in

Economic Data Continues to Get Worse and Worse

Every week seems to bring more and more news that the economy, if it isn’t already in recession, is well on its way to recession. This time it’s bad news from the manufacturing sector, which like most other sectors of the economy underperformed versus economists’ expectations. Factory orders barely rose in January, up 0.1 percent versus the 0.3 percent that economists had predicted. And shipments fell for the fourth consecutive month, another indicator that manufacturing activity is slowing. Any effects [...]

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Gold forecast to cross 1400 level

Wall Street Analysts Increase Gold Price Forecasts; $1,400 Per Ounce by End of 2019

Most Wall Street analysts are a pretty conservative bunch when it comes to predicting the price of gold. Since Wall Street firms can’t make the same money from trading gold that they can from trading stocks, bonds, currencies, and other commodities, they tend to downplay the importance of gold in investment portfolios and predict prices for gold that are lower than they are likely to really be. Enter the analysts at Commerzbank, who earlier this year predicted that gold would [...]

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FOMC meeting this week

Investors Eagerly Awaiting Outcome of FOMC Meeting

This week’s Federal Open Market Committee meeting will be one of the most highly-observed in recent years, as markets look to discern whether or not the Fed will continue to raise interest rates this year. The FOMC statement is probably going to be of less importance this time around than the press conference and the summary of economic projections that will be released. Journalists will have a chance to press Fed Chairman Jay Powell on the direction of Fed [...]

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