With the long weekend for the U.S. markets we are opening up in China with the Nikkei with not much action as all await the Chinese GDP number. This should set the tone for the week.
Metals are opening slightly lower as all eyes once again are on oil. The metals are stuck in a range and when in this range we have to look at the dollar for clues. The dollar is north of 99 by 15 cents and seems poised to move higher on any negative news out of Europe. Greece wasn’t that long ago and I think the media will start to take a closer look at some European countries this year as the Euro heads to parity with the dollar.
We have to keep an eye on interest rates and we notice TLT is up with the 10 year yield falling. We even hit below 2% last week in the 10 year and I think we will again. Even 1% I don’t think is out of the equation before all is said and done this year, and possibly lower.
Fed interest rate hikes?
While CNBC and the Fed talk about raising rates 3 or 4 times this year one Fed member came out last week and threw caution to the wind. I think the market took the hint finally and is somewhat worried about what’s to come. If we are indeed heading towards deflation then that’s not good for most any asset and the move to cash by the smartest investors I think has begun.
Stay tuned in what I believe will be one of the most volatile years ever and we’re only in the third week!
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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