Monthly Archives - January 2020

Stocks vs. Gold: How Conventional Investing Wisdom Is Being Stood on Its Head

Conventional investing wisdom for the past several decades has posited that stocks are the best asset to invest in if you want to make the most investment gains; bonds are the best asset to diversify your portfolio, while still allowing for gains; and gold is the best asset for protecting wealth while avoiding losses and minimizing gains. But what if that conventional wisdom is wrong? The mainstream attitude towards investing is perhaps typified by Warren Buffett, who has long been [...]

Read more...

Even a Dovish Fed Can’t Buoy Markets Right Now

The Federal Open Market Committee (FOMC) held its first meeting of the year this week, and it was slightly more dovish than many people expected. Still, it wasn’t enough to keep stock markets from plummeting, as renewed fears of the Chinese coronavirus are weighing heavily on world markets. While markets had looked earlier in the week like they had gotten over their fears of the virus, increasing death tolls and the likelihood of a Chinese economic slowdown as a [...]

Read more...

Rising National Debt Will Weigh Heavily on the Economy and Your Investments

The Congressional Budget Office (CBO) just recently published its projections on US government spending over the next decade, and the document is a doozy. CBO expects the federal deficit to reach $1 trillion this year, and to average $1.3 trillion between now and 2030. The total debt held by the public is expected to reach $31.4 trillion by 2030, an increase of over 80% from today. That increase in debt issuance will wreak havoc on the economy and impoverish [...]

Read more...

What Effect Will a Global Health Pandemic Have on Your Investments?

Every year we’re warned to get our flu shots. We’re told that the flu kills tens of thousands of people each flu season, and we’re constantly being reminded of the potential dangers of the disease. And at the back of many people’s heads is the history of the Spanish flu, which killed between 20 and 50 million people worldwide in 1918. Public health authorities always like to point out the dangers of a pandemic disease of that sort, and it [...]

Read more...

“Cash Is Trash” Says Legendary Hedge Fund Investor; Here’s Why He Thinks You Need Gold

While much of the financial advice you hear in the media needs to be taken with a grain of salt, every now and then you hear a nugget of truth. In this case it’s coming from legendary hedge fund investor Ray Dalio, who was recently interviewed at the World Economic Forum in Davos, Switzerland about his views on the economy and investing. Like many people who are even just casually observing the behavior of stock markets, Dalio believes that stock [...]

Read more...

How Your Social Security May Change in 2020

Millions of American retirees receive Social Security payments each month. And while Social Security wasn’t intended to be the sole source of retirement income for retired Americans, many people rely on Social Security for some or even all of their income in retirement. That may be due to poor performance of their investments, losing their pension as their company declares bankruptcy, or for any number of other reasons. And for those who depend on Social Security, there are changes [...]

Read more...

Tesla Stock Price Demonstrates Just How Big the Stock Market Bubble Is

It seems as though South African inventor and billionaire Elon Musk has been the darling of Silicon Valley for years. His vision for the future has certainly helped drive the popularity of Tesla’s cars, and his ideas for solar panels and space travel certainly mark him in the minds of many as a visionary. But while Teslas may be popular, the company’s stock price is what has made Musk really popular. Stock funds that have invested in Tesla have [...]

Read more...

3 Reasons the Silver Price Will Explode

The stage has been set for 2020 to be the year for precious metals to make a big bull run. With the potential for conflict in the Middle East, jittery stock markets, and a Federal Reserve that’s engaging in more monetary easing, this year should see increased demand for gold and silver. Many investors remember the great precious metals bull run that ensued after the financial crisis, with gold pushing to $1,900 and silver pushing to nearly $50 an ounce. [...]

Read more...

Corporate Executives Think Stock Markets Are Overvalued… As They Continue Buying Back Stock

It’s no secret that corporate stock buybacks are one of the primary drivers behind high-flying stock markets in recent years. Over the past decade, corporations have been the largest net buyers of stock, continuing to buy back more and more stock and driving prices through the roof. And even though most corporate CFOs now think that stock markets are completely overvalued, they’re expected to continue the trend this year too. There are a number of reasons behind the corporate stock [...]

Read more...

Global Debt Continues to Soar: Is the End in Sight?

With interest rates having been held at near-zero for nearly a decade, and in Europe and Japan actually being forced into negative territory, it shouldn’t be any surprise that debt issuance around the world has exploded. Total global debt levels are set to hit an all-time high of over $257 trillion. That’s more than triple the world’s entire economic output, and more than $33,000 for every person on the planet. How long can this last? Debt in and of itself [...]

Read more...