Everything is fine, it really is!

Investment Analysis Clubs Macro Economic Trends and Risks
1

Wells Fargo’s CEO says there is ‘no question’ that the US is heading into a downturn, and it will be hard to avoid recession

https://finance.yahoo.com/news/wells-fargos-ceo-says-no-1055…

There’s no recession in the building industry:

In November 2021, Javadi signed a contract with Drees Custom Homes for $1.2 million.

“We knew that this home, this design, was the home that we wanted,” Javadi said.

But two months later, Javadi discovered just how much that dream would cost her — emotionally and financially.

Between January 2022 and the end of March, Javadi said the builder hit her with several price increases. The first was for $40,000. The second was between $90,000 and $100,000. Javadi said the third increase was an adjustment to the $100,000 hike.

“… $140,000 for [an] increase in lumber and other building materials and slab,” Javadi said.

The fourth increase was also an adjustment, from $140,000 to $192,000.

“Their reason was that the base price of the home had gone up, which boggles my mind,” Javadi said.

https://concellocospeito.com/new-austin-home-construction-bo…

The Federal Reserve is now indicating that it could pause interest rate rises in three months or so:

https://dailyfinancetimes.com/news/federal-reserve-in-septem…

I’m buy some more gold next week!

1 Like
2

I read your linked article. The operative word is “could,” meaning that the author doesn’t know any more than we do and is indulging in wishful thinking.

Meanwhile:
https://www.nytimes.com/2022/06/02/business/economy/brainard…

**The Fed’s vice chair says a coming pause in rate increases is unlikely.**

**Lael Brainard, the vice chair of the Federal Reserve, said another big rate increase in September might be appropriate if inflation did not moderate.**

**By Jeanna Smialek, The New York Times, June 2, 2022**

**Lael Brainard, the Federal Reserve’s vice chair, suggested on Thursday that the central bank might make another large rate increase into September and threw cold water on the idea that policymakers might pause rate moves after the summer — signaling instead that they are intently focused on controlling too-high inflation.** [end quote]

<I’m buy some more gold next week! >

Gold has its uses. But history has shown that gold is not a good inflation hedge. And gold has disadvantages: it does not produce interest or dividends, it costs both when you buy and when you sell, and it must be stored.

Wendy

So…who are you going to believe? An unknown blogger on the internet or the Fed’s vice chair?

The Fed has already predicted raises of 0.5% in each of June and July. If inflation doesn’t significantly drop they will continue.

6 Likes
3

So…who are you going to believe? An unknown blogger on the internet or the Fed’s vice chair?

I think that it was Atlanta Fed chairman Raphael Bostic who suggested a ‘pause’ in interest rate hikes in September

Gold has its uses. But history has shown that gold is not a good inflation hedge. And gold has disadvantages: it does not produce interest or dividends, it costs both when you buy and when you sell, and it must be stored.

It was $35 an ounce when the US defaulted on The Bretton Woods agreement in 1971. It’s currently around $1,850.

Since Biden torpedoed the petro-dollar he many be pushing the world to a gold backed currency since it has become obvious that the USA has ‘weaponized’ the US dollar.

I’m with J P Morgan on gold:

“Gold Is Money, Everything Else Is Credit”

But don’t worry Wendy, everything is fine. Yellen has now seen the light:

Treasury Secretary Janet Yellen finally admits she was ‘wrong’ about inflation

https://nypost.com/2022/06/01/janet-yellen-admits-she-was-wr…

4

gold is going to drift downward.

Believing in things is for religion not the markets.

The USD is appreciating and will appreciate a great deal more. All commodities are going to drift downward nominally in USD.

5

gold is going to drift downward.

Have you some evidence or do you just believe it, like some religious view?

Actually, thinking about it, I hope gold drifts downwards. If this happens then the rest of my widley spread portfolio should be heading the other way.

No one ever got poor by having some precious metals.

1 Like
6

Thank you for recommending this post to our Best of feature.
You will be able to recommend 8 more posts today. (explain this)

No one ever got poor by having some precious metals.

Tru dat!

100 years ago you could buy a new Colt revolver with a one ounce gold coin - you still can today*!*
https://www.bing.com/search?q=one+ounce+gold+coin&qs=AS&…

Desert (Fiat paper money: legal tender or fire tinder?) Dave