Inflection Point (Part 6): What Precious Metals? So far, the Inflection Point Series appears to be largely unfolding along the lines that we laid out beginning in Part 1, which argued that the long run equity valuation cycle had more than run its course. The key factors which had propelled the Stock Markets to dizzying […]
Interest Rates Continue to Edge Higher. Interest rates peaked in early 1980 at 20% on the Federal Funds Rate, the key short-term borrowing rate set by the Federal Reserve. Known as the Prime Rate years ago, it reflects very short maturities. Longer term rates, such as Five, Ten, or Thirty Year Maturities are set in […]
Inflection Point (Part 2): Financial Assets Give Way to Hard Assets Recently, we outlined the case for why equity prices may be at an historical Inflection Point (https://markonomics101.com/2018/07/12/inflection-point-part-1-the-long-term-equity-valuation-cycle/). Both Price Earnings multiples (PEs) and Earnings themselves have very little apparent upside while being highly susceptible to a reversion to their long-run means. Such a […]
Charts courtesy of (http://www.stockcharts.com). Are Precious Metals Nearing Completion Of A Long Term Bullish Setup? “Dullsville” would be an apt description of the “action” or lack of volatility in the Precious Metals Sector over the last decade, and especially over the last 3 or 4 years. We last commented on the Precious Metals Sector in […]
Amid dire circumstances, Precious Metals, Gold and Silver, are set up perfectly for an explosive move higher. The coming explosion in the price of Gold and Silver has several fundamental factors supporting it, including: 1) the weak dollar policy of the Trump administration, 2) increased demand from Central Banks worldwide, 3) increased demand from buyers […]
