Written by Bryan Lutz, Editor at Dollarcollapse.com:
Every Sunday morning I sit down to write a few thoughts.
Sometimes these thoughts end up being about life, other times they are on gold, geopolitical issues affecting the markets, or the economy.
Here are three thoughts for this morning:
1. Home Depot is raising a recession red flag.
There are a few items retail stores watch to predict future sales, even recessions.
Costco looks for increased demand of canned ham.
(You’ll see it at the end of the aisle.)
Wal-mart sees increased demand for tuna and spam.
(Also positioned at the end of the aisle.)
But, when you get to Home Depot, drops in revenue point to the whole store. Fewer people have disposable income and less have access to credit. For Home Depot, less interest in renovations, or upgrading the middle-class “asset,” indicates a recession is coming.
Now their stock is showing the same thing…
When the 50-Day Moving Average crosses over the 200-Day moving average the chart forms something called a death cross.
It is an extremely bearish sign. Especially coming into the new year. Home Depot is raising a recession red flag.
2. Is this one of the reasons more people don’t trust higher education?
Apparently, the more education you have, the more likely you are to rationalize violence as a means for social change.
A recent survey provided by the Skeptic Research Center Team shows that 40% of those with a graduate education agree. They, say, “violence is often necessary for social change.”
Shocking? Maybe, but not surprising.
The more interesting statistic is that those with just some college or an associate of arts degree agree the least.
These are hard-working people just trying to get by. Probably people who’ve already suffered enough. When you know suffering, you don’t want any more of that for yourself, or anyone else either.
But, if you’re smart you can come up with “really good” reasons why other people should suffer rather than yourself.
3. Add this to your “things you don’t want to see in a debt-based economy” list. Last year gold began outperforming US Treasury bonds. Here’s what gold is also outperforming.
Last year, gold broke past returns on US Treasury Bonds. It was one of the first signs the USD was collapsing, soon to be replaced with gold.
This year, gold is outperforming the S&P 500.
Gold’s time is already here.
Still running the old 60/40 portfolio?
It’s a pretty simple investment strategy…
Gold.