U.S. dollar

Federal Reserve, U.S. Dollar: 2 Factors Supporting Higher Gold Prices

By Thursday, March 26, 2015

Gold PricesI am looking at two factors to see where gold prices are headed next: the Federal Reserve’s actions and the U.S. dollar. They are unanimously pointing toward the upside.
Let me explain…
Price of Gold and Federal Reserve’s Interest Rates Decision… Read More
On March 18, the Federal Reserve provided guidance on what it will do regarding interest rates. It is adamant that interest rates will rise. Fourteen members of the Federal

U.S. Dollar Strength the Real Threat to Investors, Not Higher Interest Rates

By Friday, March 13, 2015

US Dollar strengthThere are issues brewing in the stock market with interest rates fears and the strengthening greenback that could drive the S&P 500 lower by five percent or more.
When Will the Fed Increase Interest Rates?
First, we have the fears surrounding rising interest rates after the strong improvement in the unemployment rate to a pre-recession low of 5.5%. This is well below the target, previously set by former Federal Reserve… Read More

Strong U.S. Dollar: How Much of a Stock Market Threat?

By Wednesday, March 11, 2015

U.S. Dollar StrengthImproving unemployment numbers added fuel to the rise in the U.S. dollar. While the U.S. dollar’s strength is likely to be a major issue this year, long-term investors shouldn’t worry.
Let me explain…
U.S. Dollar Gaining Strength
There is a glimmer of hope, as the U.S. dollar index (a measure of the U.S. dollar’s strength relative to a number of other currencies) hits multiyear highs. And that’s the fact that… Read More

Rising Debt, Soft Dollar; Gold the Only Protection for Investors

By Friday, December 19, 2014

Protection for InvestorsWe’re only into the second month of the U.S. government’s current fiscal year and we’ve already racked up a budget of $179 billion. (Source: U.S. Bureau of Fiscal Service, December 10, 2014.)… Read More

About the 40% Collapse in the Use of the Dollar

By Monday, December 8, 2014

U.S. Dollar at Accelerated PaceSince July of this year, the U.S. dollar is up about 10% against a basket of other industrialized world currencies. Some say the dollar is up because the Federal Reserve has stopped printing paper money (while other countries are still printing) and because the Fed has said it will raise interest rates in 2015 (while other countries are still lowering their rates).
To me, the dollar has gained against other… 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

National Debt Rising 2.3 Times Faster than Budget Deficit?

By Wednesday, October 29, 2014

National Debt Rising 2.3 Times Faster than Budget DeficitFor the U.S. government’s fiscal year ended September 30, 2014, the government registered a budget deficit of $483 billion—the lowest budget deficit since 2007. In fiscal 2013, the budget deficit was $680 billion. In each of the previous four fiscal years, it was more than $1.0 trillion per annum. (Source: U.S. Department of the Treasury, October 15, 2014.)
On the surface, this is great news.
And logically, one would think,… Read More

Gold Mining Companies Selling for Pennies on the Dollar

By Monday, October 13, 2014

Gold Stocks The Most Beaten-Up Sector of the Market Finally Bottomed OutThe fundamentals for higher gold bullion prices continue to impress. The table below illustrates the output from U.S. mines in the first six months of 2014 compared to the first six months of 2013.
In the below chart, we quickly see that since March of 2014, production of the precious metal has been quickly declining. Meanwhile, on the demand side of the equation, we see increased demand for gold bullion… Read More

Another Solid Earnings Season Ahead for Existing Winners?

By Friday, October 10, 2014

Solid Earnings SeasonOne large-cap that always reports early is Costco Wholesale Corporation (COST). The company’s numbers came in solid.
Costco hit a wall not too long ago and was hard pressed to produce growth. But the company’s latest quarter beat the Street with considerable sales strength in the month of September.
In its most recent quarter, there was considerable growth in the company’s cash position and shareholders’ equity improved significantly.
For the… Read More

The Biggest Risk This Coming Earnings Season

By Friday, October 3, 2014

Biggest Risk This Coming Earnings SeasonFinancial reporting is ramping up and what corporations actually say about their businesses is the best market intelligence available to investors.
Acuity Brands, Inc. (AYI) is in the business of making lights for indoor and outdoor applications. Based in Atlanta, it’s highly likely you’re already using this company’s products without even knowing it.
The business of manufacturing lighting is not front-page news, but that doesn’t matter because for this company,… Read More

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