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Job Losses Pile Up as Economy Continues Spiraling Downward

As the US economy continues its self-inflicted contraction, job numbers continue to paint a picture of a severely damaged economy. Just about everywhere you turn, the numbers are going from bad to worse. And as long as millions of Americans remain under lockdown, those numbers won’t get better anytime soon. Last week saw two horrendous figures coming out. The first was for first-time unemployment applications. Analysts across the board figured that it would be somewhere in the range of 3 [...]

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Gold Continuing to Soar as Coronavirus Shows No Signs of Abating

With no real end in sight to the coronavirus crisis, and millions of Americans out of work for an indefinite period of time, the US economy is set to enter perhaps its worst financial crisis since the Great Depression. The effects of the current economic shutdown will be felt for years, if not decades, to come. Against that backdrop there is very little good news for investors, with one small exception. Gold and silver, as they have in previous crises, [...]

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Federal Reserve Blowing Bond Bubble Even Bigger

Whenever the Federal Reserve, or any government agency for that matter, intervenes in the economy, it is always going to end up picking winners and losers. Government intervention distorts economic activity, and very often in ways that are detrimental to the functioning of the economy. The Federal Reserve’s latest attempts at propping up the economy have led the Fed to intervening in corporate bond markets by purchasing corporate bonds through two different facilities, the Primary Market Corporate Credit Facility and [...]

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The Real Problem With Investing in Stocks and Bonds Right Now

Hope springs eternal in the minds of many investors, who are optimistic that stock markets will regain their former high levels. But with the Dow Jones now closer to 20,000 points than 30,000 points, that isn’t likely. Still, there are major reasons not to invest in stocks and corporate bonds right now aside from just the possibility of a stock market crash. Hyperinflation Wipes Out Owners Many investors treat stock ownership as a form of gambling rather than investment. They don’t [...]

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5 Investment Alternatives If You’re Worried About a Stock Market Crash

The first quarter of 2020 was one of the worst ever for the Dow Jones and the S&P 500. And the first trading day of the second quarter saw the worst ever start for both indices, worse even than the worst days of the Great Depression. With stock markets thousands of points below their recent highs, many investors fear that the worst is yet to come, and that markets could see a repeat of the 2008 financial crisis, during [...]

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Federal Reserve Balance Sheet Continues to Grow, Endangering Your Retirement

At this point everyone realizes that the Federal Reserve’s balance sheet is set to increase in a major way. The only question is when (or if) it will stop, and how quickly it will increase. Many analysts today believe that the Fed’s balance sheet may very well top $10 trillion by the end of the year, and that may not even be the end of it. Needless to say, that would be very damaging for the economy. As of March [...]

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How to Protect Yourself Against a Global Recession Sparked by the Coronavirus

With the spread of the COVID-19 coronavirus around the world, billions of people are taking steps to prevent themselves from succumbing to the virus. But their health isn’t the only thing at risk from COVID-19. Their investments are suffering as well. Stopping the spread of the virus has prompted governments around the world to stop all non-essential business activity. Bars, restaurants, gyms, and even factories are shutting down as people hunker down indoors and try to wait out this virus [...]

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What Could Possibly Go Wrong? Reserve Requirements Are Now Zero

With the flurry of actions the Fed undertook over the past few weeks to supposedly “stabilize” financial markets, one very important action has flown under the radar. And it’s one that could have a very debilitating effect on US banks and the entire financial system. One of the elements of monetary policy that central banks use to influence the amount of money created within the financial system is that of reserve requirements for banks. The current banking system is a [...]

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What Is the FOMC and How Does It Affect Your Investments?

Many investors have undoubtedly heard of the Federal Reserve System, even if they may not know exactly how it operates. But fewer have heard of the Federal Open Market Committee (FOMC), which actually makes the monetary policy decisions that the Fed carries out. The FOMC consists of the seven members of the Board of Governors of the Federal Reserve System, who are all appointed by the President, the President of the Federal Reserve Bank of New York, and four of [...]

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Some Silver Linings in the Midst of Crisis

With stock markets having been on a roller coaster over the past few weeks, and numerous investors undoubtedly watching their 401(k) balances in horror, financial markets haven’t been too kind to most people. Couple that with the prospect of GDP falling almost 25% as a result of business shutdowns due to coronavirus, plus an increasing number of coronavirus cases and fatalities, and it looks like there isn’t much to look forward to. But amidst all the negative news, there [...]

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