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.
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.
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.
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.
November 7, 2012
The US stock market appeared to have an allergic reaction to the results of yesterday’s presidential election, with the Dow falling some 313 points, or 2.36%, today. The S&P 500 slid 34 points, or 2.37% and the Nasdaq Composite fell 75 points, or 2.48%.
Actually, it wasn’t just the outcome of the election that stocks were reacting to, there were other factors in play.
Traders were very concerned about the approaching fiscal “cliff” and fear that the sharply divided government and country will be unable to come to terms to deal with it as 2012 winds down.
In addition, traders are once again worried about Europe. Greece is set to have another parliamentary vote on yet another austerity package designed to prevent a frightening default and there is a great deal of uncertainty surrounding whether that vote will produce a favorable outcome.
What all this indicates is that the US and Europe are both awash in debt and the financial world is skeptical that either will take meaningful steps to solve their problems. This is an environment fraught with risk and, in a risky environment, there is no better safe haven than gold.