LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Time for Investors to Reset Their Portfolios for Inflation


 -- Published: Tuesday, 5 November 2019 | Print  | Disqus 

 - Stefan Gleason

As investors reset their clocks to accord with the end of Daylight Savings Time, they may also need to reset their expectations for future returns. 

A strong body of research suggests that artificially changing the time twice a year – forward, then backward an hour – does more harm than good.  It leads to sleep disruptions, heightened stress, missed appointments, wasted time (ironically), and a diminishment of productivity around these biannual time changes. 

As reported in HeadlineHealth, “Circadian biologists believe ill health effects from daylight saving time result from a mismatch among the sun ‘clock,’ our social clock – work and school schedules – and the body’s internal 24-hour body clock.”

That mismatch can have dire consequences: “At least one study found an increase in people seeking help for depression after turning the clocks back to standard time in November.”

And “research shows the springtime start of Daylight Savings Time may be more harmful, linking it with more car accidents, heart attacks in vulnerable people and other health problems that may persist throughout the time change.”

Of course, no time is ever actually gained or loss – only redistributed from one part of the calendar to another.  But meaningless manipulation is supposed to be beneficial, somehow, as compared to following a consistent 24-hour time cycle throughout the year.

Similarly, no national wealth is gained overall through the artificial interjection of monetary inflation by the Federal Reserve.  But the central bank’s interventions do have the effect of transferring wealth – often from wage earners and savers to speculators and leveraged financial institutions. 

The Fed’s recent stimulus campaigns and pronouncements on inflation may be setting up investors who buy into conventional asset markets for failure.  Last week, Fed chair Jerome Powell reiterated his goal of achieving a 2% inflation objective.

Put another way, the Fed aims to destroy 100% of the real value of any bond or bank certificate of deposit that yields 2%.  Since most savings and money market accounts yield less than that, the Fed aims to ensure they deliver negative real returns.

As we’ve seen in other parts of the world, it is possible for cash to carry a negative nominal yield as well.  But it is generally easier to get depositors and bondholders to accept negative real returns disguised with positive nominal yields.

A positive inflation rate also makes it easier for Wall Street to boost the stock market in nominal terms.  That, in turn, gets investors excited and drives further gains.

It’s a virtuous circle… until it turns vicious.  Just as booms can be artificially amplified and extended by monetary inflation, the resulting busts can be extreme as well (especially in real terms).

According to asset manager Michael Pento, “When this thing implodes, we are all screwed. On a global scale, we have never before created such a magnificent bubble”

He added, “The plunge in the stock market would be huge and from a much higher level… That’s why the Fed’s panicking.”

We wouldn’t rule out central bankers being able to prolong and extend the bubble for a while longer before it implodes.  But in the process, there could be an inflation-fueled explosion to the upside in hard asset markets including gold and silver. 

Stefan Gleason is President of Money Metals Exchange, a precious metals dealer recently named "Best in the USA" by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC and in hundreds of publications such as the Wall Street Journal, The Street, and Seeking Alpha.


| Digg This Article
 -- Published: Tuesday, 5 November 2019 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.