Gold is Looking Good in Economic Uncertainty

Gold is Looking Good in Economic Uncertainty

Gold is Looking Good in Economic Uncertainty

$DIA, $SPY, $QQQ, $VXX, $GLD

US manufacturing has been hurt by a strong USD and sluggish global demand, which have undercut US exports, as well as efforts by businesses to reduce an inventory overhang.

Citigroup’s chief economist Willem Buiter, known as a Gold skeptic, now says the precious Yellow metal is an appealing investment in times of uncertainty. And now saying Gold should be part of a diversified portfolio of currencies.

“I will never argue with a six thousand-year-old bubble. So Gold, in times of uncertainty and especially in days of uncertainty laced with negative rates, looks pretty good,” he said.

He said Gold “competes with other paper (fiat) currencies, the USD, the JPY, the EUR. And if these currencies now yield negative interest rates or are at risk of negative yields in the US and the United States, then the currency (Gold) that at least has a Zero interest rate, looks better.”

Jeffrey Gundlach, CEO of DoubleLine Capital, warned scared investors that they should consider capital preservation by putting their money in cash, Gold or US Treasuries, and to avoid  US stocks.

“You don’t have to be out there making speculative bets on Tesla all time, it’s OK to make money slowly,” Mr. Gundlach said “The markets take the stairs up and the elevator down. It’s important not to be in the elevator,” he said.

Thursday, the US major stock market indexes finished at: DJIA -79.24 at 18515.79, NAS Comp -16.03 at 5073.90, S&P 500-7.92 at 2165.10

Volume: Trade was light with about 803-M/shares exchanged on the NYSE

  • DJIA +6.3% YTD
  • Russell 2000 +6.0% YTD
  • S&P 500 +5.9% YTD
  • NAS Comp +1.3% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.27) Neutral (0.19) Bullish (0.38) Bullish (0.25)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.25) Bullish (0.25) Bullish (0.35) Neutral (0.14)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.35) Neutral (0.19) Very Bullish (0.56) Bullish (0.31)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.30) Bearish (-0.32) Bearish (-0.33) Bearish (-0.25)
HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Bullish (0.41) Bullish (0.33) Very Bullish (0.60) Bullish (0.29)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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