Gold: No Silver Lining

Gold is continuing its impressive 2016 rally into early February. But the recent surge may be coming to the end of the line, at least for the short term. Gold has not only reached overbought levels, but it is also missing an important silver lining of support behind its advance.

Please click on the link to read more of my article on Seeking Alpha.

Gold: Time To Get On Board?

Gold has gotten off to a rousing start in 2016. During the first month of the new trading year, the yellow metal has risen by more than +5% at a time when the stock market as measured by the S&P 500 Index has stumbled out of the gates by falling -5% over the same time period. This strong beginning to 2016 raises a key question. Is it finally time to get on board the gold trade following a more than four-year bear market to date in the precious metal?

Please click on the link to read more of my article on Seeking Alpha.

Friday’s Stock Sell-Off And The Fed’s Epic Fail

The U.S. Federal Reserve had four possible outcomes coming out of their latest FOMC meeting on Thursday. And it seems that the Fed may have ended up with the worst possible result.  Not only did the Fed potentially forgo their last reasonable opportunity to get off of the zero bound and squeeze in an interest rate increase for a future rainy economic day, but they may have also unwittingly sparked a new wave of downside stock market volatility that they have been so tediously careful to avoid over the last several years.  At least so far, the stock market has voted down the Fed’s latest decision. But now that the chatter and uncertainty about whether the Fed is going to raise interest rates is behind us at least for the next few weeks, what exactly can we reasonably expect from capital markets from here?

Please click on the link to read more of my article on Seeking Alpha.

Pangaean Rhapsody

Are investment markets living the real life today? Or is this just a fantasy? Financial markets nearly collapsed seven years ago, but here we are today with the crisis becoming an increasingly distant memory. Are we living the real life of a global economy that is truly on the mend with only a matter of time before the elusive phase of sustained economic growth finally sets in? Or has the recovery we have experienced since the crisis been nothing more than a fantasy conjured up by global policy makers and their unwavering commitment to inject stimulus no matter what the future costs? In the end, there will be no escape from reality. Global central banks are now essentially all in, and it is now only a matter of time before we begin to find out whether this has all been real or fantasy. Whether investors are eventually caught in a landslide remains to be seen, but now more than ever is the time to avoid complacency and to keep your eyes wide open when it comes to monitoring investment markets today.

Please click on the link to read more of my article on Seeking Alpha.

Lessons From The Golden Bear

Gold has been a dreadful performer in recent years. Since peaking at over $1900 per ounce in September 2011, the price has fallen by nearly -40% over the four years since. But after such a deep and prolonged price decline, and given concerns about the continued sustainability of the current bull market in stocks that is already the third longest in history at over six years, it is reasonable to consider whether it may be worth considering either a new or increased allocation to gold for portfolio diversification and risk control purposes. In working to draw any such conclusions, it is worthwhile to first evaluate whether it even makes fundamental sense from a supply and demand perspective to do so.

Please click on the link to read more of my article on Seeking Alpha.


Get every new post delivered to your Inbox.

Join 9,545 other followers