Archive for September 2019
You May Think I’m Crazy, But…..
For a long while now, I have been putting forth this long-term forecast. The Dow to Gold ratio will eventually fall to 1. If you’re not familiar with the Dow to Gold ratio, it is calculated by taking the value of the Dow Jones Industrial Average and dividing by the price of gold per ounce.…
Read MoreArtificially Low Interest Rates and More Unintended Consequences
As I have been predicting for several years, underfunded pensions are beginning to get attention. This is a topic that will continue to make more headlines as pension funding problems continue to get worse. An often-ignored fact relating to pension funding is that the funding problems facing pension plans have largely been brought about by…
Read MoreEconomic Red Flag: Private Sector Debt
Recently, I wrote about the fact that the wealthy were cutting back on spending and it seemed that the middle class was going into debt to fund some of its lifestyle. An article in “The Wall Street Journal” this week confirms this trend. (Source: https://www.wsj.com/articles/families-go-deep-in-debt-to-stay-in-the-middle-class-11564673734?mod=e2fb&fbclid=IwAR094GG5xSD2UFvfynEtOpd2et7Zh8L2zIgkhUs_7nIInez21d61-RTSIHg) The article points out that medical care, college, houses and…
Read MoreMy Interpretation of the Dow to Gold Ratio – Why Stocks Have More Downside and Why Gold Has More Upside
Stocks rebounded again last week as metals retreated slightly. The Dow to Gold ratio now stands at 17.78. For those of you unfamiliar with the Dow to Gold ratio indicator, it is calculated by taking the price of the Dow Jones Industrial Average and dividing by the price of gold per ounce. The Dow began…
Read More“Recession Looming?”
Stocks rebounded strongly last week with the Standard and Poor’s 500 rallying 2.79% and the Dow Jones Industrial Average advancing 3.02%. Gold took a breather after a strong move up; the yellow metal fell .52%. Silver advanced 5.37%, moving up nearly $1 per ounce. I believe this move in silver may be confirming my thought…
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