inflation

Core CPI Increased in April; More Inflation to Come?

By Friday, May 22, 2015

Core CPIOn Friday, May 22, 2015, the Bureau of Labor Statistics released its report on the consumer price index (CPI) for April. The CPI increased 0.1% month-over-month in April. (Source: Bureau of Labor Statistics, May 22, 2015.)Meanwhile, the core CPI, which excludes food and energy (two of the biggest expenses), gained 0.3% in April—the biggest gain in two years.Looking at CPI’s ComponentsThe food index did not change in. Read More

U.S. Economic Outlook for 2015: Economy Strong but Markets Unstable

By Tuesday, May 19, 2015

Economic Picture for 2015 Not RosyStrong Economic Data Points to Growth in 2015?As 2014 winds down, many investors are wondering what the economic outlook for 2015 will be. If you look at the U.S. economic data that’s been trickling in, 2015 looks like it could be a very strong year.The U.S. announced strong third-quarter gross domestic product (GDP) growth of 3.9%. This extends the recent trend of strong quarter-over-quarter GDP growth; in the. Read More

Inflation Expected to Remain Low: Why This Won’t Hold True

By Tuesday, May 12, 2015

Inflation Remain LowOn May 11, 2015, the Federal Reserve Bank of New York released its survey of consumer expectations. The results from about 1,200 respondents suggest that the expected inflation in the next few years will be soft. (Source: Federal Reserve Bank of New York, May 11, 2015.)According to the survey, the coming one-year expected inflation is 2.7%. This is the lowest level since the beginning of the rotating survey in. Read More

Higher Interest Rates: the Good, the Bad, and the Ugly

By Tuesday, May 5, 2015

Higher Interest RatesThe U.S. Federal Reserve has kept interest rates artificially low in order to stabilize the economy downturn of 2008 and 2009. Is it about time the Federal Reserve raises interest rates? Can our economy handle it?You see, under low interest rates, consumers and firms find it easier to borrow money to finance their spending, investment, and operations. Lower interest rates also make stocks and real estate more attractive because. Read More

How I Proved a Gold Bear Wrong About Gold Prices in 2015

By Thursday, March 19, 2015

Bullish gold outlookRecently, I had an interesting conversation with my friend about the current situation surrounding gold prices. He argued gold investments were a drain on your capital; I argued that gold is the next big trade.My Friend’s Bearish Gold Outlook“How can you be so bullish on gold?” asked a friend of mine I met with over the weekend. He argued, “There’s no inflation whatsoever, interest rates in the U.S.. Read More

Why Ugly Inflation Is Showing Up Everywhere Except in CPI Numbers

By Monday, March 9, 2015

Inflation is Showing Up EverywhereAccording to the U.S. Bureau of Labor Statistics (BLS), between February 2014 and January 2015, overall prices in the U.S. economy declined by 0.1%. (Source: Bureau of Labor Statistics, last accessed March 5, 2015.) In 2014, inflation ran at the slowest pace since 2008.When I look at these statistics, I can’t help but ask myself, how is this possible? Something seems very wrong. Aside from gas and housing, I. Read More

Survey Shows Real Inflation Running at About 5%

By Wednesday, December 3, 2014

Survey Shows Real InflationIf you listen to mainstream economists, they will have you convinced prices in the U.S. economy aren’t rising fast enough. Some say we are headed towards a period of deflation. But the reality of the matter is that inflation in this economy is running rampant.According to the Bureau of Labor Statistics, what you could buy for $1.00 in 2008 will cost you $1.08 in 2013. In other words, according. Read More

Two Major Concerns About Overvalued Stock Market Prices

By Monday, November 17, 2014

Stock Market 60 OvervaluedThe amount of money investors are borrowing to buy stocks is skyrocketing.In September of this year, margin debt on the New York Stock Exchange (NYSE) stood at $483.87 billion—a new record-high. When the stock market was forming a top in 2007, margin debt was at a “then” record-high of $329.51 billion. Margin debt on the NYSE is now 47% higher than just before the previous big market sell-off. (Source:. Read More

What Canada/China’s Yuan Trade Deal Means for U.S. Dollar

By Friday, November 14, 2014

How Long Will This U.S. Dollar Rally LastAs the chart below illustrates, since July of this year, the U.S. dollar has been rallying against other major world currencies.I, for one, do not expect to see the rally in the U.S. dollar sustained. I believe the U.S. dollar is currently rallying, because other parts in the global economy are doing worse than the U.S. While the U.S. dollar may rise in the short-term, because our central bank. Read More

Prices of Gold/Silver Companies to Double from Here?

By Monday, November 10, 2014

Prices of Gold and Silver Companies to DoubleSilver is down 70% from its high of $48.70 an ounce back in April of 2011. And the calls from the mainstream are for silver prices to fall farther, as the Federal Reserve has stopped printing paper money and inflation is nowhere in sight. I beg to differ.As the price of one ounce of silver reaches a four-year low, investors are running to buy the gray precious metal. To. Read More

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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