Last month I wrote about how the Federal Reserve operates in an environment of cycles: Interfering in multiple markets which lead to creating a bubble. The Bubble then explodes and creates massive financial uncertainty. They then intervened with the creation of new money, followed up by more new money, which creates another bubble waiting to burst.
At the beginning of this month, Janet Yellen announced there would be a rate hike sometime during the month of March. During inter-day trading, Gold went up over $12 while the Dow went from green to red as Yellen made her announcement. Previously it was only a one in five chance that rates would go up in March, then it moved immediately to 75% and now 82% according to the CME’s tracking tool of Fed funds futures. The rate hike will happen more than likely on March 14-15th of the Fed Market Open Meeting, less than 48 hours before our country will have reached the looming Debt Ceiling. The Fed confirmed last December that there would be three hikes in 2017, and that was also confirmed in her speech at the beginning of this month. [Read more…]
Gold vs Stocks, Two Bull Markets You Don’t Want to Miss. [Read more…]
January 2017 Newsletter Setting The Record Straight
On Tuesday, November 8th, 2016 our country believed enough in the ideals of Donald Trump that he won the electoral vote and became President Elect Donald Trump. The markets reacted in the short term, similar to the Alan Greenspan coined the phrase, “irrational exuberance”. Pushing the dollar aggressively higher and raising the 10-year note rate, resulting in stocks moving beyond the economic and fundamental levels. Gold adjusted down as a result of this. All because of the ideology that soon to be President Trump will make America Great and fix all. I said this environment will not last.
There is the old adage that says “The Trend Is Your Friend”. Historically people that move against trends, for the most part, are the ones that incur financial loss. So it is imperative to understand and to be on the right side of a trend to benefit financially. I believe the world is moving into a new era, a shift on a large historical level towards De-Globalization. To understand De-Globalization, one must first understand that some of the stepping stones the world has established in creating a Global society, and the results showing that is what the world has evolved too. [Read more…]
An Update From David Fischer
There seems to be an underlying theme of two comments that are somewhat ongoing when talking about a Bail Out and a Bail in. As many of you know our government did a Bail Out for Fannie Mae, Freddie Mac, AIG, and GM in 2008 and 2009. This became so disturbing amongst Americans that many have said it will never happen again.
In talking about a Bail In that has already happened in 14 countries, in the last 5 years, people passionately say that if that was done in America there would be a revolt and rioting in the streets. In hearing these two comments from many walks of life, 100% of the time they haven’t done their homework on this subject. Therefore a belief or an opinion has been developed without knowing historical and factual events. [Read more…]