Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

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

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

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 17 2017
By: Ira Epstein

Next-Generation Crazy: The Fed Plans For The Coming Recession
By: John Rubino

COT Gold, Silver and US Dollar Index Report - November 17, 2017
By: GoldSeek.com

Gold Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

 
Search

GoldSeek Web

 
Strong Dollar Augurs Even Lower Rates

By: Rick Ackerman, Rick's Picks

 -- Published: Tuesday, 16 September 2014 | Print  | Disqus 

Although T-Bond prices have tracked the dollar’s ups and downs most of the time, the chart shows that they have occasionally gone their separate ways, at least for a while. One implication is that the dollar’s powerful rally since early July is not likely to continue for much longer without eventually exerting an upward pull on T-Bonds. And this is what we expect, since our current rally target for the Dollar Index at 87.98 leaves running room that is almost equal to the impressive rally that has occurred over the summer. Since T-Bond prices move inversely to yields, that would augur lower long-term rates in the future.  Our curiosity about this dynamic is more than merely academic, since we have been recommending a bullish T-Bond play using equity options for leverage.

As to why a strong dollar has not sucked more money into U.S. Bonds, it could be because speculative money is being deployed directly in currency bets rather than in such dollar proxies as T-bonds. Whatever the case, our outlook is for much lower long-term rates, notwithstanding all of the fear and anxiety that has come to attend every utterance from the Fed. It is one thing for Yellen & Co. to pretend the economic recovery is strong enough to threaten us with inflation. But that is just the central bank talking its book — ‘managing expectations’, as it were. In reality, and as is plainly obvious, the recovery is so weak that even a small upward shift in rates would put the U.S. on the same recessionary track as Europe. In no event should we expect an ‘outbreak’ of inflation, and even less the kind of economic recovery that might strain the supply of dollars. With a free trial subscription, you can join us at ringside in the Rick’s Picks chat room if you think you might enjoy the thrill of stalking The Top.


| Digg This Article
 -- Published: Tuesday, 16 September 2014 | 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 - 2017



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

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com 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, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.