Gold Up $175 From a Year Ago!
Yes, gold is in a very strong bull market and will continue to be for some time. There will always be sandy spots along the way. For example: Gold was down $8.70 to 732.80 yesterday. "No worry, Mate!" It is at 735.40 as I begin to write today. Gold reaching $800 seems to be in the near future. It is not as unreasonable goal as one was led to believe earlier in the year. After all, gold was at only 648.75 three months ago. Keep the longer trend in mind.
The dollar was stronger yesterday and overnight. The Euro was down to $1.4043 from $1.4137. By the way, how unreasonable does a $1.45 Euro look today? Certainly, a possibility. It is likely to be a certainty if the Fed lowers interest rates again.
Crude oil was down $2.20 to $79.02 per barrel yesterday. Sounds encouraging, but don't believe it will stay down forever. If we were using Euros, the cost would be $56.27 per barrel. Wow! That is why the Europeans see bargains all over America. Their currency rocks!
A fall out benefit of the lower value of the dollar is the attractiveness of our products, services, and tourist attractions to foreigners with higher value currencies. Have you noticed the increased number of tourists from Asian nations? They see bargains all over America.
China continues to court Africa with multiple investments in natural resources and infrastructure. This is not wasted effort. As the standard of living increases in nations all over Africa, there will be markets for Chinese goods. China continues to court Europe and Canada to establish more Walmarts, oops, that is, "China Malls" in other countries. These efforts are tending to reduce the Chinese dependence upon the American market. We should also focus on the vast increase in consumerism in China, itself. After all, there are a few Chinese people there. Remember our population is measured in millions, theirs in billions. Additionally, the same demand for products is growing in India. The Chinese business men are not stupid.
America's business is still war, so we should be investing in defense and aerospace stocks which will benefit from rebuilding and upgrading our military. Also, gold and silver will be needed to offset the loss in purchasing power of the dollar. Additionally, mining stocks will bust upward as we enter the third phase (blow off) of these markets. The DJI seems destined to continue upward toward its third phase, as well.
We need to hang tough with our investments and keep funds available to take advantage of corrections along the way for additional purchases.
All is in the hands of our Great Heavenly Father and Sovereign, King Jesus. Study His word, apply it in all of life, and rest comfortably in the assurance of His promises to His people. Seek Him in His word and you will find Him.
Best to each, Doug
The dollar was stronger yesterday and overnight. The Euro was down to $1.4043 from $1.4137. By the way, how unreasonable does a $1.45 Euro look today? Certainly, a possibility. It is likely to be a certainty if the Fed lowers interest rates again.
Crude oil was down $2.20 to $79.02 per barrel yesterday. Sounds encouraging, but don't believe it will stay down forever. If we were using Euros, the cost would be $56.27 per barrel. Wow! That is why the Europeans see bargains all over America. Their currency rocks!
A fall out benefit of the lower value of the dollar is the attractiveness of our products, services, and tourist attractions to foreigners with higher value currencies. Have you noticed the increased number of tourists from Asian nations? They see bargains all over America.
China continues to court Africa with multiple investments in natural resources and infrastructure. This is not wasted effort. As the standard of living increases in nations all over Africa, there will be markets for Chinese goods. China continues to court Europe and Canada to establish more Walmarts, oops, that is, "China Malls" in other countries. These efforts are tending to reduce the Chinese dependence upon the American market. We should also focus on the vast increase in consumerism in China, itself. After all, there are a few Chinese people there. Remember our population is measured in millions, theirs in billions. Additionally, the same demand for products is growing in India. The Chinese business men are not stupid.
America's business is still war, so we should be investing in defense and aerospace stocks which will benefit from rebuilding and upgrading our military. Also, gold and silver will be needed to offset the loss in purchasing power of the dollar. Additionally, mining stocks will bust upward as we enter the third phase (blow off) of these markets. The DJI seems destined to continue upward toward its third phase, as well.
We need to hang tough with our investments and keep funds available to take advantage of corrections along the way for additional purchases.
All is in the hands of our Great Heavenly Father and Sovereign, King Jesus. Study His word, apply it in all of life, and rest comfortably in the assurance of His promises to His people. Seek Him in His word and you will find Him.
Best to each, Doug
posted by Doug @ 9:01 AM
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