The Fed’s Functions Since it was established in 1913 to be the Central Bank of the United States, the objectives of the Federal Reserve have changed. Originally, the main job of the Fed was to enhance economic and price stability to lessen severe economic swings. Since then, its mission has been amended over the years, […]
Will This Time Be Different? Precious metals have disappointed their fans and enthusiasts for YEARS. After peaking at about $1900 per ounce in 2011, Gold is still 1/3 lower 8 years later. The 2011 runup was the result of inflation fears from Quantitative Easing (QE) by the Federal Reserve. QE was the program of massive […]
Crude Oil in Record Setting Plunge. Just two weeks ago, a barrel of West Texas Intermediate Crude Oil (WTIC) fetched $75, a new multi-year high. Today, that same barrel trades at just above $55, a loss of 27%. This price collapse in Oil was the largest in that short of a time period in […]
Signs of Inflation Rapidly Vanish. For the 12 months ended September, 2018, the Consumer Price Index (CPI) was reported to be increasing at an annual rate of 2.3% (https://www.bls.gov/cpi/). The CPI is the “official” measure of how much more it costs an individual each year to maintain a consistent standard of living. Unfortunately, the CPI […]
Are Precious Metals Finally Bottoming? Early this year, Gold and Silver looked like they were positioned in an outrageously bullish set up (https://markonomics101.com/2018/07/15/inflection-point-part-2-financial-assets-give-way-to-hard-assets/), but until about 3 weeks ago, they had instead, taken a huge nose dive to near multi-year lows. Recently, with the economic landscape having changed so much, the Precious Metals Sector is showing […]
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 […]
Inflection Point (Part 5): Interest Rates, Inflation, and Inflection. “Inflation” is the annual rate of price increase for a specific basket of goods or services a consumer buys and is directly tied to changes in “value” of the currency being used in the exchange of those goods and services. The government’s official gauge of inflation […]
Inflection Point (Part 3): The Ultimate Cryptocurrency Surprise It’s pretty tough to recall a historical example of an “asset class” that has generated as much controversy as Cryptocurrencies. On the one hand, established Wall Street veterans, such as J. P. Morgan Chase Bank CEO Jamie Dimon, have called Bitcoin a “fraud” (https://www.cnbc.com/2017/10/13/jamie-dimon-says-people-who-buy-bitcoin-are-stupid.html). Others, such as […]
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 […]
