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moneymetals

Which Metal Has the Most Upside & How to Avoid Costly Mistakes

A few weeks ago we heard the first half of an interview Money Metals president Stefan Gleason did during a recent 360 Gold Summit. Today we’ll hear part two of that interview. Stefan gives some important warnings to precious metals investors, discusses why he favors one of the precious metals over the others and also talks about some really important things to consider when selecting a precious metals dealer. Don’t miss the eye-opening conclusion of Stefan’s interview, coming up after this week’s market update.

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Well, the big headline in markets this week – the S&P 500 pushed to a new all-time high in nominal terms.

But is it a new high in real terms? Most in the financial media don’t want to ask that question. They would rather join their Wall Street sponsors in celebrating a new official record.

President Donald Trump certainly didn’t miss the opportunity to boast about the stock market’s strength under his watch.

Donald Trump: The stock market and our country from an economic standpoint is doing the best probably it's ever done. We're hitting new highs again. We've hit new highs, I guess, close to or over 100 times since I'm president from the time of the election.

CNBC Reporter: You heard the President starting off there with the stock market, obviously he sees that as a piece of good news, and an overall barometer for the economy under his leadership. I asked the President how high he thinks the stock market can go, he didn't respond to that one.

The Trump tax cuts for corporations and his administration’s relative business-friendly approach to regulation have certainly given equity markets a boost. But stocks have also benefited from a general rising sea of liquidity thanks to the Federal Reserve.

Investors shouldn’t be fooled by records that get set because of artificial stimulus from central bankers. There has never been a clearer case of the Federal Reserve goosing the stock market than the current rally that began off last year’s pre-Christmas lows.

Under pressure from Wall Street and the White House Plunge Protection Team to back off on rate hikes, Fed Chairman Jerome Powell announced a pause. Earlier this spring he confirmed the pause would continue for the remainder of the year. For Wall Street, it has been perhaps the greatest pause of all time judging by the nominal gains registered over the past four months.

Despite the celebratory mood surrounding stocks, there is a striking number of what market technicians call “non-confirmations.” The transportation index hasn’t hit a new high. The small-cap Russell 2000 index is nowhere near a new high. And the S&P 500 itself is far short of a new high when measured against raw materials including crude oil and gold.

Check out the full podcast here: https://bit.ly/2ZQhTpd

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