A Good Time To Sell Gold

Gold has spiked due to the tensions between Russia and Ukraine.  With the current price around $1,350 per ounce, gold sits roughly $160 dollars above the recent low.  With the expectation that interest rates will be rising in the near future, I would expect commodities, including gold, to be pressured as well.  This is likely a good time to at least reduce exposure to gold, if not eliminate it from…

The Possible Negative Impact of Rising Rates on Investments – Published in Noozhawk on Monday July 22, 2013

With the threat of rising interest rates resulting from the Federal Reserve unwinding its bond-buying program —quantitative easing round 3 in which the Fed has been buying $85 billion in bonds each month since September — investment values that fluctuate as a result of changing rates are at risk of price declines. For those who own these investments, understanding the possible downside risk, given a specific increase in interest rates, can help provide…

Recent Sector Performance Provides Some Guidance For Investors

The recent roughly 6% pull-back in the Dow and 7.5% for the S&P 500 was a shock to some.  However, if we dig a little deeper, we find that several of the sectors within the market and economy have experienced much more sizable drops.  In the table below, we can see all 10 sectors representing the U.S. economy and stock market.  As can be seen, the utilities sector, one of…

Gold’s Death Cross Confirmed

The price of gold plummeted today with the rest of the precious metals and most commodities, confirming the death cross formation – the 50-day moving average moving down through the 200-day moving average.  I realize to some technical analysis seems like voodoo, but a large number of traders and some investors pay attention to this stuff, so it is worth watching and understanding.  We are at an interesting point on…

Gold Approaching “Death Cross;” Similar Fate To Apple

Gold in recent weeks has declines sharply, dropping from around $1,675 at the beginning of February to $1,579 today, or by almost $100 per ounce/almost 6%.  The chart for gold shows that the 50-day moving average is very close to crossing the 200-day moving average.  Should the 50-day cross down through the 200-day, this would be a “death cross,” which is very, very negative.  Apple formed a similar chart pattern…

Market Perspective: Long-term Outlook for Stocks Is Positive

As you know if you read my blog often, I am very cautious on the financial markets today.  I believe bonds are in a bubble and that stocks, which are at multi-year highs, are overvalued and due for a correction.  My concerns are further enhanced by the pending debate in Congress over the spending cuts, which they will attempt to address in February.  Keep in mind that the entire month…

Gold continues its slide

Gold is down another $50 or so an ounce, or about 2.8%, after the CME raised its margin requirements for the second time this month.  Gold lost $104 an ounce yesterday (Wednesday, August 24th), and has fallen almost $200 per ounce from its all-time high around $1,900, which it hit on Monday of this week, August 22nd.  As I have been writing, I believe gold to be in a massive…

Stocks rebound sharply

Stocks are rebounding nicely so far this morning, up over 2%, with the Dow up well over 200 points.  It is still early, and we could see more selling, but this does show that investors are willing to step in and risk cash.  Stocks should be bought and gold should be sold here.

Last hurrah for gold

I have already written about gold being in a bubble, as are all commodities, but this issue bears repeating – gold is grossly overpriced and will crash.  At $1,640 or so this morning, we are seeing the last push of the shinny metal before the realities of inflation taming actions by the Fed, slow growth, and a deal on the debt ceiling signal the start of spending cuts and higher…

Time to sell Gold!

Okay, I know there are a lot of “Gold Bugs” out there they say you should always have some gold in your portfolio.  Fair enough, but it’s the “some” that I would debate.  Gold closed at a record high today, pushed higher by almost $19 per ounce to $1,568 by the continued uncertainty surrounding the debt crisis in Europe.  To me, everything bad that could possibly happen that would push…