News — investing

Gold Surging on Financial Uncertainty, Stock Market Volatility

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By John McDonald  Unlike the stock market, which makes a certain subset of analysts and investors nervous when the numbers get too high, gold values are surging and few expect them to fall in the near future, if at all. Thanks to wide-ranging uncertainty about the United States’ trade policies, fear that the stock market is flying a little too close to the sun, and ongoing controversy over just what the Fed’s predicted July interest rate cut will really do for the national economy, gold’s “power as a safety trade is not waning, but could actually be set to spike,”...

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Investors Hoping for Bad News to Get Good Interest Rates are Making a Mistake

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By John McDonald As the U.S. economy continues to post lackluster metrics like relatively low jobs reports, investors and markets continue to cheer these reports. Why? Because the concept that “bad news is now good news” because weaker economic indicators might force the Federal Reserve to lower interest rates has fully seized the market mentality. However, not everyone is on board. “The expectation that easing central bank policy can offset weaker data is at odds with both a broad swath of historical data and basic monetary theory,” writes Andrew Sheets, global strategist at Morgan Stanley. Sheets began his arguments against...

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Next Financial Crisis Triggered by Global Market Shock

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By John McDonald With more and more economists speaking freely of the next recession not as a possible economic swing to be avoided but rather as something now unavoidable, it came as no surprise when market bear and NYU economics professor Nouriel Roubini warned there is a growing risk of a recession as soon as 2020. Roubini and colleague Brunello Rosa published a list of 10 potential downside risks that could trigger a U.S. and global recession. In his analysis last week, Roubini said bleakly, “Nine of them are still in play.” Roubini cited, “trade wars with China and other...

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How to Stay Ahead of Inflation When the Fed Is Fighting Your Every Move

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By John McDonald Words like “inflation” and “rising interest rates” make most investors feel a little nervous, but more and more financial analysts are concluding that a few interest-rate bumps could be a positive thing for many Americans. While rising interest rates could make it slightly more expensive to buy a home (although interest rates could rise several points before fully departing from the “historically low” category), analysts say that if interest rates do not rise soon, many investors who rely on low-risk investment vehicles like money market accounts, certificates of deposit (CDs), and savings accounts could suffer irreparable harm....

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