Archive for June 2020
Economic Fallout and a Desperate Fed
As I have been repeatedly forecasting, it is my belief tht the Dow to Gold ratio will eventually fall to two, or perhaps even one. This would potentially put the Dow at about 5,000 and gold at about $5,000 per ounce. That prediction seemed radical when I made it 5 years ago and while it…
Read MoreDow to Gold Forecast and the Continued Decline of the Dollar
Stocks and gold both advanced last week, leaving the Dow to Gold ratio unchanged at 14.83. As I stated last week, I continue to stand by my prediction of a Dow to Gold ratio of 2, perhaps even 1. That forecast which seemed radical when I made it, now seems more realistic. The Federal Reserve…
Read MoreParallels to 1929
After a big “up” week two weeks ago, stocks declined hard once again last week as the volatility in the stock market continues. As I have noted, I remain skeptical of the recent rally in stocks as valuations are now, once again at historical extremes. I continue to stand by our prediction of a Dow…
Read MoreInflation or Deflation? Sorting It Out
Stock market activity last week and the jobs report created positive economic and financial news last week. This activity seems to support the idea of a “V-shaped” recovery, something I said last week was unlikely. I still believe it is unlikely. On June 5, the Bureau of Labor Statistics reported that nonfarm payroll employment grew…
Read MoreEconomic Recovery and the Possible Future of Money
This past week, I had many conversations with clients and other financial professionals about where the economy goes from here. There is no shortage of strong opinions about the current economic environment brought about by the restraints placed on the economy with the stated goal of protecting public health. I’m sure you have your opinion…
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