Felix Zulauf Says Gold To Rally In 2016
from King World News On the heels of the Dow tumbling as gold and silver continue to move higher, Felix Zulauf Says Gold To Rally In 2016. Overnight markets were weaker, with Asia losing around 3% and Europe 1.5% to 2%., with the proximate cause being some combination of markets that were ready to decline and the potential consequences of the “Brexit” vote, with perhaps a smattering of angst over the terrorist attack in Orlando…
However, I am hesitant to attach much significance to the latter from a financial market perspective given that the modest overnight loss in the SPOOs was nearly completely eradicated in the early going, as American investors chose to ignore the weekend’s bad news, as they have with nearly anything of the sort for quite some time. In fact, after a couple of hours of trading, the S&P was down about 0.2%, the Dow about half of that, and the Nasdaq slightly more, even with the Microsoft acquisition of LinkedIn. After that jam job, however, the stock market slid for the rest of the day and closed on the lows, off about 0.75% (with the Nasdaq slightly worse). Away from stocks, colored paper was all over the place, with the green variety weaker on balance. Oil was a nonevent, fixed income saw the blow-off continue, and silver gained 0.5% to gold’s 1%. Urkel In the Eccles: Did We Do That? The race to zero in the worldwide fixed income market is proceeding apace, and so is the pressure on the world’s too-big-to-fail banks, as they march on plumbing new lows. Obviously, though the politicians and the public in general don’t like the banks because of what they helped precipitate in 2008, I’m sure central bankers are not happy to see the banks splattered, especially as a direct result of their manipulation of interest rates. Just as too much money printing perversely caused the oil price to collapse via junk bonds and fracking, zero-percent interest rates across the curve make it rather difficult for large, leveraged banking behemoths to do well, as central banks persist in warping everything. Included below are three questions and answers from the Q&A’s with Bill Fleckenstein
Bonus Q&A Question: Fleck, The absolute strangest analysis of our current situation is that the Yen is getting stronger as a “Risk Off” trade – its a safe place to park your money?!!! I know the Yen has been getting stronger, but surely no one in the right mind can believe its because its “safe”?!!