Quantitative Easing

Quantitative easing is a monetary policy tool used by a central bank to try and stimulate an economy when the economic cycle is far below optimum levels. Central banks increase the quantity of money in the financial system through quantitative easing by purchasing securities, such as treasury bonds, to increase the price of assets; this will lower prevailing yields and entice investors into other areas that might be more beneficial for an economic rebound. One worry with quantitative easing is that the increase in the supply of money might lead to inflation, or the overall increase in the price of goods.


Peter Prazic: “We Could See Oil Prices in the Low $30s”

By Tuesday, August 25, 2015
Peter Prazic Oil Prices ForecastCrude oil prices are currently trading at a six-year low and threatening to slide even lower as global financial markets are still trying to come to terms with Monday’s catastrophic dips. I sat down with our in-house energy specialist Peter Prazic to get the full story on how things are playing out for the oil patch. Iyer: Peter, the question.

Gold Investing: The Case for Higher Gold Prices in 3 Charts

By Monday, July 13, 2015
Gold InvestingDespite weak gold prices, excess money printed by the world’s central banks could ignite inflation, driving investors to safe haven assets. Policymakers have been using monetary policy as a form of stimulus in recent years, building a house of cards with nothing but paper money. If that paper house collapses, disaster would inevitably.

Money Supply Strongly Suggests Higher Inflation Ahead

By Friday, November 7, 2014
Money Supply Strongly Suggests Higher Inflation AheadAsk even an amateur economist, and they will tell you this: an increasing money supply eventually leads to inflation. It’s a simple concept; the more paper money there is in the system, the less it’s worth and the less it buys. And this is exactly what is happening in the U.S. economy. The money supply is growing at a fast rate when compared.

How Markets Will Handle End of Money Printing Era

By Wednesday, November 5, 2014
Markets Will Handle End of Money Printing EraIt’s finally over… The quantitative easing programs initially started by the Federal Reserve six years ago are (for now) history. In its statement on October 29, the Federal Reserve said, “Accordingly, the Committee decided to conclude its asset purchase program this month.” (Source: “FOMC Statement,” Federal Reserve,.

Why the Housing Market Points to Very Weak 2015 Economy

By Monday, November 3, 2014
Housing Market Points to Very Weak 2015 EconomyThe chart below shows us that between April and August of this year, home prices in the U.S. declined. The S&P Case-Shiller Home Price Index is only released 60 days after each month’s end, so while data for September and October are not yet available, based on what I’m about to tell you, five years after the Great Recession, the .

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From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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