Current Thoughts for 7/26/2016

Dollar down, gold up. Any questions?

Today’s comment I made was to an article that was talking about how higher rates were coming because of an improving U.S. economy. You would think this was written by Janet Yellen herself, or someone else at the Fed.

Here was my reply;

You can’t have growth in the U.S. economy without production. Here’s a recent article from Christian Science Monitor; To solve our growth problem, we must first solve our productivity problem

Of course if productivity only comes from government entities that soak more from the tax base, that may not be a real recovery. Also, the article suggests robots take over the jobs of janitors, food servers, street cleaners and artificial intelligence replace insurance agents and accountants and driverless vehicles take over taxi drivers and truck drivers etc.

A jobless recovery? lol

The contraction that is coming is not just a U.S. issue. Worldwide we have seen a global decline in production. If you Google those words you’ll see for yourself (sometimes it pays to verify what us writers say). Typically I provide links, but I want readers to see what I see.

There is trouble brewing and I am not saying this to get investors to load up on gold. I do believe a dollar cost average approach to your allocation is still the best way to go and I do still see lower prices ahead. In the meantime, I’ll try and call the micro the best I can and for that I lean lower but the dollar will not just go straight up and will wreak havoc to micro calls, especially on the volatile Fed interest rate decision weeks.

We should have some fun beginning tomorrow. Fed should not be raising rates and personally, I don’t mind if they do and pretend everything is just peachy. It’s not. So an intelligent Fed will NOT raise rates tomorrow. They will more than likely still “talk the talk” of a September raise, or possibly December, “depending on data.”


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About Doug Eberhardt

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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