Investors Moving to “Larger” Holdings in Gold
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.
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