Investors commonly assume that rising interest rates adversely impact the gold price, and vise versa. They believe that a rising interest rate environment is indicative of a strong economy, which is supposed to drive investors out of gold and into the stock market. They further assume that investors will want to exchange their gold, which has no yield, for stocks and bonds, both of which have yields and generate income but this intuition is unfounded. Let me explain why that is the case ans why, as such, gold investors shouldn't fear rising interest rates.
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Today’s Financial Entertainment: “Cataclysmic Observations” Regarding Gold & Silver
Frankly, we cannot conceive of a more cataclysmic set of circumstances for both the global economy in general, and the gold Cartel specifically, than currently exist. Act now, before “traders” return from summer vacations next week or you may be locked out of the most important “protection trade” of all time!
Read More »What Affect Will Rising Interest Rates Have On Inflation & the Future Price of Gold?
Though the stock, bond and currency markets, at the moment, are preoccupied with the question of when the first interest-rate increase will happen, the real story lies in where interest rates are ultimately headed because that answer defines where stock, bond and currency prices are ultimately headed and the reality, dear reader, is that the Fed simply cannot — and will not — allow interest rates to crawl very high. Why is that you ask? Read on!
Read More »This is the Most “Stupid” USD Chart Around – Here’s Why (+2K Views)
You’ve almost certainly seen the chart below over the years – it shows the purchasing power of the US Dollar over time - and it looks terrifying. I call it the "stupid" chart, though, because it is a total misrepresentation of the facts because it isn't telling the full story. Here's why.
Read More »SELL! U.S. Stock Market Is An Investor’s Nightmare – Here’s Why (+2K Views)
The stock market is presently a roulette wheel with dimes on black and dynamite on red. We continue to have extreme concerns about the extent of potential market losses over the completion of the present market cycle.
Read More »Interest Rates Play A MAJOR Role In the Behavior Of the Stock Market – Here’s Why
To understand how the stock market behaves it is imperative to realize that the stock market is overwhelmingly influenced by interest rates. It’s difficult to overstate this key fact. Interest rates are the bone and marrow of the stock market. More specifically, the stock market is ruled by long-term and short-term interest rates creating an overriding framework for what drives the market in which different sectors do better or worse at different points in the economic cycle. This article explains the behavior more fully.
Read More »An Inside Look At the U.S. Dollar Printing Process (+2K Views)
Have you ever wondered how dollar bills are made, why currency is too hard to replicate? Check out the infographic below to learn about the process that goes into printing U.S. paper currency.
Read More »Harry Dent: Get Into Cash – Stock Market Will Crash to 5,500-6,000 By 2017! (+3K Views)
You have to get out of stocks. Stocks have bubbled again and when they go down they’re going to go down hard.
Read More »Are We In A Pre-crisis Period? A Look At 8 Possible Triggers
The frequency of financial crises and recessions is quite high: on average, there is one crisis every 58 months (using data from the US National Bureau of Economic Research). In other words, statistically speaking, we should expect the beginning of the next crisis in April 2015, which would end by March 2016. There are 8 possible scenarios that could cause the next crisis. Let's take a look at each.
Read More »A Financial Train Wreck IS Coming & That’s When All Hell Breaks Loose! Here’s Why
A financial train wreck is coming! When does it hit the wall? The answer to that question is it's not very far down the road, and I can promise you that is when all hell is going to break loose. [Let me explain why that is the case.]
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