Article Category: Gold

Earn Income by Renting Out Your Stocks

Different market conditions require different strategies and tactics. A well rounded investor must have a playbook that allows him or her to make money in all types of markets.

In a rising bull market, making money is easy. In fact, there's a distinct trend in the investment advisory business in which subscriber growth tends to moderate during strong bull markets. Why? Because when the tide is rising, you can pretty much buy anything and it will go up.

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Posted in: Dividends Gold Options Volatility

Goldilocks and the Bear Market

Not too warm, not too cold, can describe many aspects of the U.S. economy. Take last week's jobs report as an example. According to estimates, 287,000 jobs were created, but this did little more than balance out the previous month's weak 11,000 figure.

Taken together, the two months put us near the 172,000 monthly jobs that the economy has averaged during 2016.

Wages fit into the same category, rising 2.6% in the 12 months through June 2016 (the highest during this recovery) but only up 1.3% in real terms during 2016.

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Posted in: Dow Theory Federal Reserve Gold Momentum Volatility

Bond Mechanics in a Negative Interest Rate World

We're going to talk about bonds today but before we get to that, I want to briefly point out why the Brexit event is impacting U.S. markets so heavily.

As we've discussed many times here at DTL, the strength of the U.S. dollar dictates the cost of U.S. goods to our trading partners. When the dollar goes down, our goods go on sale; when the dollar goes up, it's equivalent to a price hike across the board. And it goes without saying that higher pricesstifle demand, which means less revenue, profits, etc.

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Posted in: Bonds Federal Reserve Gold Inflation Interest Rates Psychology

Fed, Markets Align

Central banks are in the spotlight this week, with the Federal Reserve's statement yesterday, and the Bank of Japan's policy decision today. Arguably two of the world's most important central banks, let's dig a little deeper into their actions (or rather, lack thereof) and the reasons behind them. Today' we'll focus on the Federal Reserve, and we'll save the Bank of Japan for some other time.

Yesterday the Federal Reserve left interest rates unchanged, citing subpar performance in consumer spending, business investment and exports. They noted that growth in economic activity had slowed, and refrained from providing any details about the next possible rate hike.

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Posted in: Bonds Federal Reserve Gold Inflation Interest Rates

Promise Low Deliver High

Those words of advice were drilled into my head many years ago while working for a mortgage broker. As a loan officer, my job was to sell money. And I quickly found that exceeding expectations was the key to closing deals.

Tangential to that objective, and perhaps more critical for success, is managing expectations. Our perceptions of just about everything in this world are relative, not absolute. Is a 3% yield good? Compared to 1%, sure, compared to 10%, not so much.

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Posted in: Bonds Dollar Federal Reserve Gold Inflation Momentum

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