inflation rate

Why Inflation More Likely Than Deflation in the U.S. Economy

By Monday, June 8, 2015
Deflation in U.S. EconomyIn the first four months of this year, January to April, prices in the U.S. declined by 0.2%. But this shouldn’t be a reason to jump to the conclusion that deflation will prevail for the U.S. economy. (Source: Bureau of Labor Statistics, last accessed May 31, 2015.) Probability of Deflation in the U.S.: Zero The Federal Reserve Bank of Atlanta calculates the probability of deflation by using the price of .

Eurozone Inflation Up to 0.3% in May

By Tuesday, June 2, 2015
Inflation Rises to 0.3 in EurozoneOn Tuesday June 2, 2015, Eurostat, the European Union’s statistics office, released the eurozone area’s inflation data for May, which is at an annualized rate of 0.3%. (Source: Eurostat, June 2, 2015.) All Components Increased Except for Energy The positive 0.3% inflation in May is an improvement from April’s zero percent. Among the components, services enjoyed the largest increase of 1.3%, compared to one percent in April. Food, alcohol, and .

The Era of Financial Insanity

By Wednesday, July 30, 2014
What Happens Next for the Stock MarketMy colleague Robert Appel (BA, BBL, LLB) issued a research paper to the subscribers of one of his financial advisories earlier this week. I thought it important that all my readers be aware of and understand the crux of what Robert is saying about our current economic situation and where it will eventually lead. Here it is: “The actions of the Federal Reserve (how far they went to ‘stabilize’ the .

Are We Really Headed for Deflation?

By Tuesday, March 25, 2014
Forget Deflation; Inflation Is Becoming a Big ProblemThe Bureau of Labor Statistics (BLS) reports inflation in the U.S. economy increased by 0.1% in February from the previous month. (Source: Bureau of Labor Statistics, March 18, 2014.) As usual, these numbers have again brought up the theory of deflation—a period when general prices decline. Reasons for the deflation fear? In 2013, inflation for the entire year was 1.5%. In 2012, it was 1.9%. Going back further, in 2011, .

Why You Shouldn’t Be Fooled by the Market

By Monday, August 20, 2012
Why You Shouldn’t Be Fooled by the MarketFollowing a weak second quarter, the Dow Jones Industrial and S&P 500 indices are now in positive territory for the first time since the end of the first quarter on the backs of a positive July and August. So far, August has proven strong for technology, growth, and small-cap stocks, with the NASDAQ and Russell 2000 up 4.2% and 3.4%, respectively, as of the close of Thursday. The S&P 500 .

Corporate Profits Meeting Expectations— Stock Market Action Positive

By Friday, July 20, 2012
Corporate Profits Meeting ExpectationsThe stock market is ticking higher in the face of continued weak economic news, and it’s mostly due to the good corporate profits we’re getting. For the most part, we’re so far seeing good corporate profits, because expectations were already reduced. Some companies are slightly reducing their outlooks for the rest of this year, but the declining visibility is modest. Corporations are being extremely conservative with their forecasts and rightly .

Dividends Income: From Bubbles to Crashes, It Always Wins in the End

By Thursday, June 28, 2012
Dividends IncomeIn recent history, without dividends, stock market investors would generally be losing money. And this doesn’t include losses relative to the inflation rate. It’s been such a difficult stock market for the last decade, and the extreme volatility serves to illustrate just how risky equity securities can be. In the 80s and the 90s, the best bet in town was the technology sector. The bull market was so strong that .

Stock Market Action Has Turned Positive and So Have the Prospects for Gold

By Wednesday, June 20, 2012
The stock market is behaving extremely well considering the huge amount of investment risk in the global marketplace. There is, however, no other place for investors to put their money and be able to generate income (dividends) that beats the inflation rate. All assets are risky: real estate, gold, the stock market and even cash. Investor sentiment is all over the map these days and it’s the new reality in .

You Know the Market’s Worried When Spot Gold Moves up with the U.S. Dollar

By Friday, June 15, 2012
dividend paying stocksInvestor sentiment continues to be best reflected in oil prices, which keep taking it on the chin. Certainly there’s an argument to be made that low oil prices are good for the economy and stimulative, but a WTI oil price below $85.00 a barrel reflects a global marketplace that’s very worried about the future. The worry is about slowing growth or lack of growth in the world’s most important economies. .

Why Getting the Business Cycle Right Is the Only Thing That Pays

By Wednesday, June 13, 2012
dividend paymentTwo decades ago, everyone was making money from the stock market. There was a boom, and some of the best stocks were in the technology sector, mostly due to the proliferation of the Internet. You didn’t even need to own the best stocks; just owning the index was a profitable investment strategy. Then, the best stocks and the rest of the market came apart, because valuations got too extreme for .

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

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