Investors Moving to “Larger” Holdings in Gold
Gold lost 15% of its value since last Summer as the USD gained on the outlook for higher interest rates and Republican Donald Trump won the presidency on a bro-business platform.
While most investors love stocks over the precious Yellow metal, it may pay to be contrarian as Trump’s campaign promises become reality
The Trump Rally has lifted the S&P 500 about 6% to record highs as stock market Bulls point to the possibility of tax cuts, billion-dollar infrastructure spending and scraping of anti-business government regulation.
US economy faces daunting obstacles to growth because of trillion-dollar public debts that will sap productivity as the Fed raises borrowing costs.
Note that increase of 100 basis points in rates boosts debt service by $470-B annually, that is 2.5% of GDP, money that cannot be spent growing the economy because it is paid to holders of US debt.
- Feb 2017 Gold ended Friday’s session down 10.40 (-0.9%) to 1173.20/oz
- Mar 2017 Silver closed Friday’s session 0.13 lower (-0.8%) to 16.51/oz
Savvy investors say the odds that Gold will shine brighter this year are growing, and that the commodity may be the hero investment of Y 2017. One said, “I have moved to a large holding in Gold.”
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Bearish (-0.31)||Bearish (-0.26)||Neutral (-0.21)||Bearish (-0.46)|
|HeffX-LTN Analysis for SLV:||Overall||Short||Intermediate||Long|
|Bearish (-0.32)||Neutral (-0.10)||Very Bearish (-0.56)||Bearish (-0.29)|
Have a terrific weekend.