Despite signs of a slowing U.S. economy, stocks managed to perform admirably as Congress rushed to complete a draft of a spending bill that President Trump might actually sign. Perceived progress in the trade talks between the U.S. and China also added a lift to stocks, pushing them towards another weekly gain.
I believe it’s safe to say that most all of us sympathise with anyone who’s living in a condition of relative slavery and, if he has the courage to attempt to free himself, we root for him to succeed. Those of us who are the most compassionate would even offer him support in his quest, if we were called upon to do so.
It was another volatile week for stocks as negotiations got underway between the Democrat controlled House of Representatives, the President and the Republican controlled Senate over the spending bills that will allow the continued funding of the U.S. government.
President Trump conditionally reopened the U.S. government last week, telling democrats they had three weeks to come up with a plan for funding his border barrier between the U.S. and Mexico or the government would be forced to shut down again over the funding dispute.
The recently announced Goldcorp/Newmont and Barrick/Rangold mergers make sense from a variety of points of view. Continued low interest rates mean that it’s cheaper to buy your competition than it is to fight them.
Eighty-four percent of millennials admit that they don’t know how to change a lightbulb. When asked what they do if one goes out, most either said that they call the landlord to fix it, or just accept having less light in future.
The standoff over “the wall” continued this week as the partial shutdown of the U.S. government passed the one month mark – the longest such shutdown on record. The effects of the shutdown are now beginning to be visible within the American economy as furloughed workers have stopped spending money they no longer have.
Prudent investors have held precious metals in their portfolios for thousands of years. Since 1998, when precious metals first qualified to be held in IRAs, that trend has continued for the same reason – because precious metals are still the only form of money that is not simultaneously someone else’s liability.
We’re all familiar with the term, “quantitative easing.” It’s described as meaning, “A monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.”
Well, that sounds reasonable… even beneficial. But, unfortunately, that’s not really the whole story.
While a myriad of forces pushed the gold price around in 2018, it basically ended the year flat. This report recaps the year in gold, shows how it compared to other asset classes in both short and long timeframes, and explores the factors to watch in 2019.