Monthly Archives - February 2020

Americans Aren’t Saving Enough for Retirement

It’s no secret that the retirement outlook for most Americans is dire. While figures for the average amount of retirement savings get bandied about here and there in the media, the median amount of retirement savings in the US is zero. That’s right, more than half of Americans have no retirement savings whatsoever. Whether they’re planning on Social Security and government assistance bailing them out, relying on friends and family, or expecting never to be able to retire, it [...]

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Financial Media Trying to Push Narrative That Recession Odds Are Low

It’s funny sometimes how the mainstream financial media tries to push narratives that are completely at odds with reality. With business activity already slowing in the US, China, and elsewhere, and with the onset of the coronavirus seriously upsetting global supply chains, anyone could tell that 2020 is going to be a rough year for the economy. Yet the financial media as late as last week were still trying to push the narrative that the odds for a recession [...]

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Citi Analysts See Gold Over $2,000 Within 24 Months

It seems like just a couple weeks ago that analysts were predicting gold to end the year at $1,650. But gold was already pushing that level late last week, as fears about the coronavirus and slowing business activity drove a wave of safe haven buying. Now analysts are predicting gold to rise to $2,000 within the next 12 to 24 months. At this rate, $2,000 gold within two years could even be conservative, as it seems that gold is [...]

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Coronavirus Fears Hammering Stock Markets

After weeks of discounting the dangers of the coronavirus to the world economy, it seems that stock markets have finally gotten wise to the threat the virus plays to the global economy. The Dow Jones opened Monday down nearly 1,000 points as more negative news about the virus emerged. Numerous new cases were reported among health officials in Japan, and a new cluster of the virus in northern Italy has sparked panic in Europe. Coupled with a dramatic rise [...]

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Gold bars for investment

What the Price of Gold Is Trying to Tell Us

After reaching the $1,600 mark last week, gold began to really break out. While many market analysts had expected gold to see major resistance at $1,600, and perhaps some profit-taking, gold took on that barrier and continued to move up. That confounded many who still rely on outdated correlations and relationships to determine what’s going on in gold markets. Here’s what the price of gold is telling us. Gold vs. Stock Markets Conventional wisdom posits that gold and stocks generally move [...]

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How Much Will Your Retirement Account Pay You Monthly?

It can be tempting to look at your 401(k), IRA, TSP, or other retirement account and think that you’ve got it made. Maybe you have $100,000 in your account, or $250,000, or maybe you’re one of those lucky ones with over $1 million. But rather than thinking of the lump sum in your account, have you thought about how much that account will net you each month in retirement? If you have a traditional (non-Roth) IRA or 401(k) retirement account, [...]

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Is the Corporate Debt Bubble Finally Popping?

The story of stock markets over the past several years has been one of phenomenal growth. The bull market in stocks since 2016 finally gave many investors the feeling that the US economy had recovered from the financial crisis. From less than 16,000 points in early 2016, the Dow Jones Industrial Average has rocketed up to nearly 30,000 points. And it seems that markets continue ignoring all the bad news and potential headwinds in their search for new highs. But [...]

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Gold Surges Above $1,600 as Stocks Slide Amid Coronavirus Fears

Every week seems to bring more and more bad news about the Chinese coronavirus. While new cases and new deaths seem not to be accelerating, much of the country remains completely shut down. With about 30% of the US semiconductor sector dependent on products from China, that could put a major damper on US industry. Apple has already warned that its sales and revenues will likely be significantly affected by the continued shutdown in China. Foxconn, one of its major [...]

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US Household Debt Hits Record High, Over $14 Trillion

The decade of near-zero interest rates in the aftermath of the financial crisis has helped fuel the creation of one of the largest debt bubbles in history. But while the corporate debt bubble gets much of the attention, as well as the $23+ trillion national debt, household debt grows largely unnoticed. And that household debt has just set a new record, growing to over $14 trillion in the fourth quarter of 2019. The current level of $14.15 trillion is nearly [...]

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What Will the Timeline for the Market Crash Be?

Millions of investors realize that a market crash is coming, they just don’t know when. The “everything bubble” has been building up for years, with prices of assets throughout the economy losing touch with reality and underlying economic fundamentals. And despite more and more negative news coming out of China regarding the coronavirus, stocks remain near all-time highs. When will the bubble burst? There’s a good chance that the prices we’re seeing now are the peak for stock markets. While [...]

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