Today’s frothy market is giving 60/40 investors a bitter taste of what is to come. Record-high stock valuations, exorbitant debt, high inflation, and rising interest rates are sowing the seeds for a radically different economic era.
Pressure is stacking up on technology companies, wiping out billions in market value. This volatility will likely contribute to a risk-off market attitude.
A stock market correction, a bond yield spike, a dash for gold – this week had it all. Will this be the exception or the rule for 2022?
2022 has humbled high-flying tech stocks, forcing investors into a risk-off attitude, and sending gold above $1,840/oz.
CPI reached the highest level since 1982. Policymakers are scrambling to assign blame and introduce solutions that won’t sacrifice the economy or the stock market.
The Fed plans to reduce bond holdings and increase interest rates in 2022. History tells us gold is one of the strongest assets in this environment.
The Fed’s response to the Great Financial Crisis changed the world of economics forever. We live in the age of free money, which tends to sacrifice long-term economic stability for short-term reward.
Once again, gold is stuck below $1,800/oz as the U.S. dollar index rises, the Fed takes a hawkish turn, and geopolitical pressures build across the Eurozone and Asia.
The Omicron variant poses a new challenge for a global economy already struggling to facilitate enough growth to outpace inflation.
Retail sales are up, consumer sentiment is plummeting, and gold is thriving on the uncertainty of a wonky, cash-rich environment.
Supply shortages, strong consumer demand, and government money printing pushed CPI to 6.2% in October, a three decade high that has investors pouring into gold.
The Fed has finally decided to tighten monetary policy. Let’s look at the historical relationship between monetary tightening and gold performance.
Gold is in a consolidation phase, waiting for the markets to change their tune and drive the price higher.
Gold mounted a comeback this week as investors turned their attention sharply toward inflation hedges and safe haven strategies.
Alternative measures of inflation from the Cleveland and Atlanta Fed point to underlying pressures that threaten the “transitory” nature of this inflationary episode.
The U.S. central bank tries to tame persistent inflation without sacrificing the rampaging and uniquely fragile stock market.