Gold

The End of QE2

Today we say goodbye to QE2- a failed program that brought few desirable results. Unemployment is down marginally, but home prices double dipped and commodity prices surged, contributing to the inflation we see today. The dollar and bonds are down, which indicates that quantitative easing has adverse consequences for a country riddled with debt. Remember, there was a debt crisis in Europe led by Greece, so the dollar should have…

Gold’s Wall of Worry

The recent surge in stock and gold prices following the market pessimism of just a week ago indicates how volatile markets can be. Although many people, especially gold bugs, are predicting a second leg down in stocks worse than what we saw in 2008, I don’t think this is happening. I believe we are simply in the process of creating a short-term bottom in stocks, gold, and commodities. We are…

Economic Slowdown Underway

More good news on the economic front as American consumer spending dropped to¬†20 month lows. I believe the bulls on the economy are officially extinct. Perhaps it is time to listen to the bears who have been right about the economy? What we face now is far more serious than a simple double dip recession. Think about it: if we run $1.6 trillion deficits in a “recovery”, how large will…

The Economic Non-Recovery

I have been very consistent in saying that the programs enacted by our government would not solve our economic ills. For awhile, there was actually a debate as to the efficacy of the government’s programs; now there is none. It is becoming increasingly difficult to find permabulls on the economy because quite frankly, most have gone into hiding. They know they were wrong. Where is the 6.8% unemployment rate we…

Gold at Inflection Point

I am really enjoying the volatility in markets, which I believe will lead to a short-term bottom in gold, silver, and stocks, and a long term top in U.S. Treasuries. The great thing about markets is that you are constantly receiving information. Last week I put out a feeler bet in gold. What followed was a pretty decent rally that had gold testing its all-time highs. This morning we experienced…