Combine record-high stock prices with weak corporate earnings, a too-strong dollar and rising turmoil in Europe, Asia and Latin America, and the result is a dangerously vulnerable market. Time to go “risk-off”, in other words. But keep stacking gold and silver.
Goldman, Morgan Stanley and IBM release numbers that look, well, depression-like. Housing starts plunge, gold and silver spike, China’s bond market seizes up, and Deutsche Bank prepares to name names in its gold manipulation scandal. And US stocks keep rising…what’s wrong with this picture?
Most US companies will report earnings this month, and most analysts think the results will be depressing. That’s bad news for stock prices and might add to the (already considerable) pressure on governments to step up their stimulus programs. Gold and silver, meanwhile, seem to like all this financial turmoil.
Between the “Panama papers” and the DC Madam’s customer list, we might be witnessing the end of personal (and corporate and government) privacy. The result? Less financial and geopolitical risk-taking and more gold buying. But don’t get burned by failing precious metal dealers. Here’s how to make sure you get what you pay for.
It’s just about official: With corporate sales and profits shrinking and consumer spending flatlining, the US economy will grow hardly at all this year while the rest of the world will probably drop back into recession. The result: Massive policy changes here and abroad, with major implications for stocks, bonds, precious metals and real estate.
If easy money has stopped working, then what’s left? Massive deficits, of course. Pressure is building on governments around the world to increase spending and pay for it with borrowed funds. Sound familiar? It should, since it’s what they’ve been doing on and off for decades. But this time, “fiscal stimulus” will, like QE and […]