Monthly Archives - October 2019

The Corporate Debt Bubble: Companies Spending More on Buybacks Than They’re Earning

The massive corporate debt bubble that exists in the United States today is perhaps one of the most under-reported pieces of financial news there is. Even when you do hear about it, it’s as though trillions of dollars of corporate debt is something ho-hum, so ordinary that it doesn’t deserve a second look. But the size of corporate debt levels today poses a serious and systemic threat to the US economy and to millions of investors who are betting [...]

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Dutch Central Bank Affirms the Importance of Gold

Most central banks will publicly denounce gold role in monetary affairs, claiming that it is an outdated relic of a bygone era. While central banks gave up on maintaining a constant gold price by the early 1970s, they still attempted to control gold’s price through coordinated sales through the late 20th and early 21st centuries. But every now and then a central bank allows the mask to slip, saying something that makes it clear that central banks understand perfectly [...]

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Piggy bank with 401k drawn on it, surrounded by coins

401(k) Contribution Limits: Everything You Need to Know

With the demise of pension plans, 401(k) plans have become the most popular employer-sponsored retirement plan in the United States. Employees in the United States have trillions of dollars saved up in 401(k) plans, helping them to get financially prepared for retirement. The major benefit of 401(k) investment plans is their tax-advantaged status. Employees can contribute to their 401(k) plan before taxes, allowing them to contribute more money than if they waited to invest after-tax dollars. Those contributions also deduct [...]

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The Advantages of a Gold IRA Over a Gold ETF

We’ve already gone over why investing in a gold ETF isn’t a great idea. But if you want to invest in gold and realize that an ETF has drawbacks, how do you invest in gold? Investing in gold through a gold IRA is the clear choice, as it offers numerous advantages over ETFs. 1. Tax Advantages The first advantage gold IRAs have is their tax-advantaged status. While it’s possible to invest in a gold ETF through an IRA or 401(k), many [...]

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More Than Half of All Banks Won’t Survive the Next Financial Crisis: Is Yours One of Them?

Over a decade removed from the financial crisis, you would think that banks and financial institutions had learned their lesson from the crisis. With the banking system supposedly on the verge of collapse in 2008, only an enormous government bailout and massive injections of liquidity from the Federal Reserve System staved off a complete collapse. But have banks learned anything from 2008, or are they still hoping for government bailouts in the event of another financial crisis? More and more [...]

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Stack of gold bars

Solved: Can I Buy Gold with My 401(k)?

There’s no better way to accumulate wealth than by saving and investing. Merely socking money away into a bank account won’t grow your wealth. That money that you save needs to be put to work for you gaining returns. But many diligent savers don’t know where to invest their money. While stocks and bonds have been traditional investment vehicles in the past, their recent performance has left something to be desired. Over the past two decades, bond yields have declined [...]

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The Rich Are Getting Richer – The Rest of Us Aren’t

If you feel like your cost of living is increasing but your salary isn’t keeping pace, you’re not alone. The median American household’s inflation-adjusted income hasn’t budged in 20 years. But life is getting more expensive, with food, education, and healthcare costs continuing to rise above the rate of inflation. And with Americans terrified of losing their money in yet another stock market crash, how can the average person get ahead? Most Americans think of investing as the best way [...]

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The Debt Bubble Is So Bad That Greece Is Now Issuing Negative Interest Rate Debt

One of the most confusing and frightening aspects of the current debt bubble is the fact that there is so much negative interest rate debt in the world today. From $12 trillion of negative debt earlier this summer, it peaked at over $17 trillion in late August. That means that investors around the world invested $17 trillion of their assets knowing full well that they would lose money on those investments. You might think that’s insane, but here’s something that’s [...]

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Gold ETF Holdings Hit All-Time High

While investing in gold exchange-traded funds (ETFs) may not be the best choice for most investors, there’s no doubt that they remain popular with many mainstream investors. And because data on private gold investment remains difficult to come by, investment in gold ETFs can be a useful proxy for overall private demand in the gold market. By that measure, gold demand continues to strengthen as more and more investors put their trust in the yellow metal to keep their [...]

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The Federal Reserve’s QE4 Will Wreck the Economy

If you thought that quantitative easing was a thing of the past, a response to the financial crisis that was dead and buried, think again. Not only is it not a relic, it is a policy response that has now become the Fed’s number one policy tool. Every time something potentially negative affects the economy, the Fed will now resort to quantitative easing. You could be forgiven for thinking that QE4 hadn’t gotten underway yet, as the Fed hasn’t made [...]

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