Wednesday, October 12, 2016

Peter Grandich & Chris Waltzek - Oct. 12, 2016.

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Peter Grandich & Chris Waltzek - Oct. 12, 2016.
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Highlights
  • The nascent precious metals bull market remains intact, according to Peter Grandich of Peter Grandich and Company.
  • Although policymakers could hike rates to 0.75-1.00%, the affect will be minimal.
  • The big economic wild card remains loose monetary policy, which includes negative interest rates, forcing investors to chase stock / bond market yield.
  • Years of positive equities returns camoflages the risks to typical investors. 5 US money center banks account for nearly $250 trillion in derivatives.
  • The enormous leverage could expose the US financial sector to another 2008-2009 like credit fiasco.
  • The recent selloff appears to be the result of forced paper liquidation, which could ignite a launch to $1,400 gold before year-end.
  • Unfortunately, a key impetus sending the sector higher could be societal fallout following the November elections in 2017.
The nascent precious metals bull market remains intact, according to Peter Grandich of Peter Grandich and Company. Although policymakers could hike rates to 0.75-1.00%, the affect will be minimal. The big economic wild card remains loose monetary policy, which includes negative interest rates, forcing investors to chase yield in the stock / bond markets. Nevertheless, years of positive equities returns camoflages the risks to typical investors. 5 US money center banks account for nearly $250 trillion in derivatives. The enormous leverage could expose the US financial sector to another 2008-2009 like credit fiasco. The recent selloff appears to be the result of forced paper liquidation, which could ignite a launch to $1,400 gold before year-end. If so, once above that level the sky is the limit. Unfortunately, a key impetus sending the sector higher could be societal fallout following the November elections in 2017.
 
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