American Consumers Turn Sour on Economic Outlook

December 7, 2012

Just in time for Christmas, consumer sentiment in America is taking a nosedive.

Americans are increasingly worried about the outlook for the economy, largely due to the fiscal cliff which is only about a month away.

This decline in morale has implications for the financial markets. It is difficult to see positive action in the stock market with Americans so worried about their futures.

In contrast, historically, hard assets, particularly gold investments, have appreciated during periods when Americans are worried, providing a degree of protection against bad times.

http://www.marketwatch.com/story/consumer-sentiment-nose-dives-in-december-2012-12-07

 

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APPLE STOCK FALLS MOST IN 4 YEARS

December 6, 2012

In another indication that the financial markets are resting on shifting sands, the tech world’s darling, Apple Computer, has now seen its stock fall precipitously, as we reported previously. Now, however, the stock has experienced its worst decline in 4 years.

Investors should take this as a warning that they need to diversify into investments that are not positively correlated with stocks. Gold investments, such as rare gold coins, have historically moved independently of the stock market, making them an ideal diversifier for a balanced investment portfolio…

http://www.reuters.com/article/2012/12/05/us-apple-shares-idUSBRE8B40VK20121205

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GALLUP: Unemployment rate at 8.3%…

December 6, 2012

The US economy is NOT getting better. This has serious implications for the US dollar and the financial markets. NOW is the time to stock up on hard assets as a form of financial insurance. Coin Trader can advise you on the best hard asset investments for your personal goals and needs.

U.S. Unadjusted Unemployment Shoots Back Up

U.S. unemployment, as measured by Gallup without seasonal adjustment, was 7.8% for the month of November, up significantly from 7.0% for October. Gallup’s seasonally adjusted unemployment rate is 8.3%, nearly a one-point increase over October’s rate.

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http://www.gallup.com/poll/159104/unadjusted-unemployment-shoots-back.aspx


Mitsui Precious Metals: Gold to Move Higher During 2013

December 4, 2012

Mitsui Precious Metals is one of the world’s largest and leading precious metals trading conglomerates. Their Strategic Analyst, David Jollie, sees the price of gold averaging $1,920 during 2013, which is more than 13% higher than its current level.

Note that Jollie says gold will average $1,920 during the year. This suggests the real possibility of sharply higher gold prices at the peak during the course of the year.

Jollie elaborates in an interview on Seeking Alpha…

http://seekingalpha.com/article/1035971-mitsui-precious-metals-jollie-gold-will-average-1920-in-2013

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What Goes Up, Must Come Down

November 16, 2012

Despite very questionable economic news, the stock market has appreciated in much of 2012. It was led principally by Apple Computer, the darling of the tech industry.

In case you haven’t noticed, Apple is in trouble now. It’s stock is down, way down from its highs. In fact, Apple shares have fallen 25% since late September. Yesterday the stock fell 2.4%.

Investors must consider whether or not Apple is the “canary in the mineshaft.”

How can a company whose shares investors chased up 74% in a year suddenly fall out of favor like it has?

Something is spooking investors. And we suggest that that something should not be viewed as exclusive to Apple. The stock market is vulnerable and investors should diversify into assets that are not closely correlated with stocks.

Rare gold coins are particularly useful in this regard.


Wealthy Investors Dumping Stocks, Real Estate and Businesses Ahead of Fiscal Cliff as Market Guru Warns of Market Collapse

November 13, 2012

 

As many readers already know, due to long-term irresponsible fiscal policies, the US government finds itself headed to the edge of a so-called “fiscal cliff.”

Policymakers in Washington are trying to strike a deal to head off the carnage, but their track record is awful on such deals. What we are soon to be faced with is a combination of large budget cuts and sizable tax increases, which will kick in if nothing is done.

Faced with the possibility of tax hikes, America’s wealthy investors are taking action ahead of time and it isn’t good news for the markets; wealthy investors are liquidating stocks, real estate and even whole businesses to avoid higher tax rates in the future. This is obviously terrible news for the stock market, the real estate market and the economy as a whole, creating the type of environment in which hard assets, such as gold coins, thrive.

http://www.cnbc.com/id/49792979

Meanwhile, long-time market analyst, Marc Faber of The Gloom Boom and Doom Report actually says that there will be no fiscal “cliff.” Nevertheless, he predicts that corporate profits are certain to disappoint, resulting in a stock market decline of 20% or more. Faber points to Apple Computer as a leading indicator; Apple’s stock has fallen 20% in recent months already.

http://www.cnbc.com/id/49802535

 

 


Unemployment: America in Denial

August 3, 2012

The US economy is in trouble, though many Americans, and much of the mainstream media are in denial.

The latest unemployment numbers are out and they show another slight increase, to 8.3%. The trend has been headed in the wrong direction for a few weeks now.

The economy is NOT improving and sooner or later this is bound to be reflected in the financial markets. There is just no scenario in which the stock market and real estate market can be healthy while the overall economy is sick.

Government statisticians tried to put a good face on the unemployment news by coupling it with the tid bit that the economy added 163,000 jobs in July, the highest number in some time. But that figure has to be taken with a grain of salt because in each and every month so far in 2012 that jobs report has had to be revised downward in the following month.

In other words, someone, somewhere in the halls of government has their finger on the scale. It is just not reasonable to believe that it is just a coincidence that the employment figures can possibly be wrong in the same direction 8 months in a row.

Yesterday CNBC ran a story that reinforces the contention that the US economy is actually already in a recession and we are just are in denial about it. The unemployment picture is actually much worse than it appears…

http://www.cnbc.com/id/48468748

Investors may be bewildered by this news, but they need to shake off the cobwebs and realize that this all adds up to eventual very bad news for the financial markets, the stock market in particular. Meanwhile, inflation is making a comeback. Fuel prices made a surprise jump in July and drought is putting upward pressure on food prices across America.

This is building a picture that looks very much like STAGFLATION. Wise investors need to protect themselves against stagflation and the way to do so is to look to history.

The last time stagflation was a serious issue in the US economy was back in the 1973-75 time period, when the stock market fell 45% and the price of gold tripled…