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…] about March Newsletter 2016

As I have said before and I will say once again, “when the Fed starts raising interest rates, markets in paper will start to go into turmoil, and gold will turn bullish on either the first or second rate hike.”

The Federal Reserve is Making Moves

The Federal Reserve has backed itself into a corner, they are darned if they do and darned if they don’t. In September 2015 Janet Yellen, Fed Chairman, talked about negative interest rates as an option to sustain and stimulate the economy. Can you imagine for a moment your bank charging you to hold your money? Would you do that? That is what a negative interest rate would do. In December 2015 the Fed raised interest rate was .25 percent to .5 percent of a percent.  This sent stocks down and gold prices up. Since then, stocks are off about 9 percent and gold rose over 16 percent. Last week Japan announced negative interest rates, being the fifth entity to join the ranks with Switzerland, Sweden, Denmark, and the Euro. This caused a one day rally since there was a large injection of capital from the Japanese sector and trickled over into our markets. The next day they wore off and we were back to the fundamentals, which the lack thereof caused the paper indexes to fall more and gold moved up. [Read more…] about February Newsletter: An Update From David Fischer