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Weekend Update January 9
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
deviantinvestor.com / by Gary Christenson /
By Everett Millman, head content writer at Gainesville Coins, a leading gold and silver distributor.
ABSRACT: After the prolonged losing streak for U.S. stocks extended into this week, the equity markets turned around by midweek and wiped out their steep losses to begin 2015. The precious metals surged in response to stock market weakness on Monday and Tuesday, yet were steady even as paper assets recovered and Treasuries eased by week’s end.
GOVERNMENT & POLICY
Data-Driven? Another Broken Promise
On Wednesday, the minutes from December’s meeting of the Federal Reserve Open Market Committee (FOMC) had the rather predictable effect of bolstering the stock markets in the U.S., which had–equally predictably–plunged in back-to-back sessions leading up to the release of the meeting minutes. With a solid retail showing this holiday season and seemingly ever-improving economic conditions Stateside, it would appear the markets became antsy ahead of the FOMC transcript. Perhaps market participants expected the Fed to take its most hawkish position on monetary policy since the financial crisis. With the available data, you can’t blame them for thinking so.
But, of course, the meeting minutes revealed not a hawkish Fed, but one that doesn’t anticipate the first interest rate hike to come before April. The dovish tenor of this committee consensus aside–and Wall Street eats up anything remotely dovish–this flies in the face of Chair Yellen’s concern that the FOMC ought to be careful not to feed the markets calendar-based forward guidance. The last time the Fed raised rates, about a decade ago, it was very clear about the timing and nature of its incremental increases to the federal funds rate. Consequently, speculators were able to game the markets ahead of Fed announcements.
The post Weekend Update January 9 appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2015/01/10/weekend-update-january-9/
