IT NEVER ENDS
Boston Fed President Eric Rosengren a voting member said today that he backed gradual interest rate hikes. He indicated that waiting too long risks some asset markets like commercial real estate “becoming too ebullient.”
He said, “My personal view, based on the data that we have received to date, is that a
reasonable case can be made for continuing to pursue a gradual normalization of monetary
So for all who hold equity positions you can thank Mr. Rosengren for a 270 pt. decline in the Dow so far today.
The price of gold and silver under pressure also after his comments holding right at the support levels I indicated this morning. My fear is, if the dollar strengthens further this afternoon, I believe both gold and silver support levels will be violated bringing more momentum to the down side.
My advice is watch the horizon. In other words keep a close eye on the markets this afternoon.
Have a nice weekend.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.