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Yearly Archives - 2019

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

Gold plays an important role in portfolio diversification

Portfolio Diversification Is Necessary to Keep Your Assets Safe Into Retirement

Read any articles about the financial well-being of American households and it’s clear that they don’t paint a pretty picture. Nearly 80% of households live paycheck to paycheck, with limited ability to save money for retirement or even for an emergency. Even though the average household has just under $9,000 in the bank, over 60% of households would have difficulty paying for an unexpected $1,000 expense. And although the average amount of money held in a 401(k) retirement account [...]

Central banks keep buying gold

Central Bank Gold Purchases Pushing Ever Higher

When it comes to assessing the actions of central banks, it’s important to pay more attention to what they’re doing rather than what they’re saying. When the Fed says that it’s going to stop running down its balance sheet, look at the H.4.1 release each week to see if that’s actually the case. And when central banks say that you can trust their currencies and that there’s no reason to invest in gold to protect against inflation, look at [...]

Many corporate bonds will become junk

Corporate Bonds Are About to See a Wave of Downgrades

There’s a crisis lurking in markets that many investors remain completely unaware of. While attention is focused on stock market levels, job hiring, and oil prices, one major market remains, as it often has been, overlooked by the majority of investors. And weakness in that market could set off a series of forced sales that could have a domino effect on markets and precipitate another financial crisis. That market is the bond market. The bond market is one to which [...]


Chinese Government Continues Its Gold-Buying Boom

After two years of keeping its gold reserves static, the Chinese government has begun ramping up its gold purchases in recent months. Its gold-buying binge has entered a third straight month, with another 10 tons of metal added in February to its official reserves. It’s worth noting, however, that it’s widely assumed that China under-reports its official reserves in order not to telegraph its actual position. The timing of this latest round of gold purchases couldn’t be more auspicious, coming [...]

Will job growth continue?

Do the Latest Job Numbers Point the Way Towards Recession?

After a January jobs report that saw over 300,000 jobs added to the economy, most economists expected a milder February, with consensus estimates expecting about 180,000 new jobs. It came as a huge shock, then, that only 20,000 new jobs were added in February. That was one of the worst numbers in years, and feeds into fears that the economy is on the edge of recession. Officials were quick to blame bad weather for much of the disappointing miss, as [...]