Billionaire Ray Dalio has made the case for investing in gold as interest rates continue to fall and central banks print more money, resulting in devalued currencies. In a recent LinkedIn post, the founder of Bridgewater Associates wrote about monetary policy and the markets over the last 50 years.  He said investors have been over-investing in stocks and other equity-like assets that will most likely see diminishing returns. "The world is leveraged long, holding assets that have low real and nominal expected returns that are also providing historically low returns relative to cash returns. I think these are unlikely to… Read More

Over the last few weeks, bond price have spiked even as yields have plunged. Investors are waking up to a coming recession. Their knee-jerk reaction has been to pour their money into safe haven Treasuries, thinking this will save them. The 10 year Treasury yield dropped to 2.26 percent last week on May 29th. This graph reveals the trend: [caption id="attachment_14802" align="aligncenter" width="700"] Chart appears courtesy of CNBC.com[/caption] This has led to a yield curve inversion, which has historically (and very accurately) indicated a recession looming on the horizon. Economist Peter Schiff has been warning about the end of the… Read More

Lately it seems the economic news only continues to get worse. In the last few weeks, consumer credit has reached all- time highs and auto delinquencies have neared those not seen since the worst point of the Great Recession. This past week, lenders had still more negative news to digest. The subprime category of credit card charge offs are still at record levels not seen since the Global Financial Crisis. Consider the first quarter of the year 2019. In all excluding the biggest 100 banks in the U.S., the rates for credit card charge offs have now been over seven… Read More

The most recent data out of the New York Fed is ominous. The current auto loans that are in serious delinquency (meaning that they are over 90 days past due) has jumped to a percentage of 4.69 percent for first quarter 2019. In the darkest days of the Great Recession, they only peaked a bit higher at 5.27 percent. These car loan delinquencies have now stretched up to their greatest amount dating back to 2011 and are nearing those scary Great Recession peaks. In actual dollars, the debt of delinquent auto accounts is already massively higher than witnessed in the… Read More

This past week, the Federal Reserve released their most recent report on consumer debt. It did not paint a pretty picture. Overall consumer debt increased by a sobering $10.3 billion for March. This brought it up to an all time high of over $4 trillion ($4.05 trillion to be exact). The chart below shows the year long trend in consumer debt: This means that through the conclusion of the first quarter in 2019, the total American consumer indebtedness rose at a yearly rate of 4.25 percent. Yet March's increase was a mere 3.1 percent. This March total actually came in… Read More

This site uses anonymous cookies to function properly. By proceeding you agree to our Cookie and Privacy Policies.
Save Settings & Continue