Yesterday, the government announced that real GDP — the measure of the value of goods and services produced in the economy — fell at a 5.5% annual rate in the quarter after plunging at a 6.3% pace in the fourth quarter of 2008. Yeah … real green shoots there.
Gold is rising again, but the dollar isn’t breaking down.
The last time we saw this happen was when investors were scared out of equities, but the Dow rallied over 170 points yesterday. I’m with Art Cashin, who said yesterday that “we’re at a very touchy area for the market.” He added: “This rally has been very difficult … This is a highly unusual formation and it’s defying the talents of a lot of people, including some of us with decades of experience.”
My research tells me that gold is going to rally hard over the coming months and into 2010. However, it could dip before that rally. I have some seasonal charts in my new gold report that show the potential of buying gold in July. It’s usually a good idea and the forces at work in the markets now could make it a GREAT idea.
But I still worry. I guess worrying is what makes us human.
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- Happy Friday — It’s Worse Than You Think (05/01/09)
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Yes, printing money and QE (#$&#**g!) aka forgery of money and passing the bill to us tax payers will cause gold to go higher … When Inflation does come around … You can have for one year a huge increase in the price of gold and then the next year you could have a huge increase in the price of real estate and the next you could have an increase in silver or agricultural commodities, and the next year in wages or stock prices.
You just don’t know exactly which one will do the best. It’s a very tricky environment, and it favors large speculators and the people who are close to the government. It shifts wealth from the middle class and workers to rich people, as has happened over the last 25 years …
But IMO ,,, sorry, we are still in a defaltionary spiral …. Trillions of dollars of bad assetts need to be re-priced so that the banks who caused the problem in the first place can buy these assetts in the cheap .. in the meantime, QE will keep them alive ….
Countering the current trend is the postive “real yield” in the T-Bill … which is a bearish force on Gold … from a trading perspective Gold, Oil and Commodities will be weak and/or bottom in early August … but not now ………