Wednesday, May 18, 2016

In Our World Of Monetary Madness
The Backdrop For Gold & Silver Could Not Be More Powerful
Peter Boockvar: "The CRB food index is just off its highest level in 5 ½ months. I repeat my bullish stance on commodities and emerging markets by extension. Bear markets end when news gets less bad, not when the news gets good. For gold and silver, which are really currencies, the macro fundamentals couldn’t be better with the monetary madness going on, particularly with NIRP .. Mediocre global economic growth combined with a curl higher in the inflation stats in the 2nd half of 2016 will create the next conundrum for the Fed. As to the possibility of a June rate hike, the market is saying NO CHANCE just a week before the UK EU vote. The fed funds futures contract in July, capturing the June meeting, is pricing in 4% odds. As for John Williams and his Friday forecast for 2-3 hikes this year, the market is also saying NO CHANCE. Odds of one are at 56%. .. The Fed will have to respond with maybe one hike by yr end when headline inflation touches 2% and the U.S. economy and markets won’t like it?"
LINK HERE to the article

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