First, a look at our market this morning. A Wall Street Gold trader I spoke with said, “I can’t get too excited with Gold at these levels so I guess I’ll just stick with trading currencies for the time being.”
A stronger dollar and higher Treasury yields are hurting the price of gold as the Dollar Index is over the 94 level again after trading overnight down to 93.64, just short of the 93.50 level some traders were looking for.
Strong outflows in both the Gold and Silver ETFs overnight are not helping the longs at all. Matter of fact, it seems to becoming a trend as the outflows in the Gold seem to be picking up momentum.
On the second day of a Fed meeting we would normally say, “all eyes on the Fed.” It seems not to be the case for this meeting, as no real news is expected. The CME Fed Watch Tool gives the odds of a rate hike at this meeting at only 3.1 percent.
As always, at every meeting we wait to hear any indication of a change in Fed policy. So at 2pm, we will be waiting to hear what they have to say. No one expects any comments to move any markets today.
It’s All Equities
Recently 73 percent of the companies reporting earnings have beat the Street’s estimates. So it’s not a surprise that the Financial Advisors I speak with claim equities are the only game in town. Tech companies have had a great run since the election, and with the economy doing pretty well, investors are happy where they stand at the moment.
Washington politics and the Trump agenda seem to have no effect on the equity markets, and in the event that something good comes out of all these negotiations, it can only be seen as a plus to equity market valuations.
Do you know what is one of the most demanding and intense jobs on the planet right now?
It’s the lobbyist for the health insurance companies.
With nobody really knowing what direction this Health Care Bill is headed, healthcare lobbyists will stop at nothing to get their firms positioned on the right side of the upcoming Bill.
You can talk about tax reform and an infrastructure bill, but there is nothing more important than the future of health care facing our nation.
Because of the enormity of the amount of money at stake here, it scares me to think that with all this pressure being put on our representatives that they won’t, “cow down,” to the insurers and forget who elected them in the first place.
Last year, insurers spent almost 147 million dollars and paid out almost 79 million in political contributions and now they are looking for a return on their investments.
Whatever bill congressman put their signatures on, one can expect diminished coverage, higher premiums and probably future tax increases because our representatives will find it extremely difficult to take away
something the less fortunate already have…some kind of coverage.
A follow up to Monday’s comment of “The Gage”
Where else but in Texas would we hear from a Congressman calling for stricter “Cryptocurrency” Regulations?
You think he read Monday’s comment of the Gage and acted? (Just kidding.)
The excitement continues over the evolution of Cryptocurrencies. So much so that it has caught the attention of Texas Congressman Roger Williams. He is calling for Cryptocurrency start-ups to be subject to anti-money laundering and “know your customer” regulations.
The congressman said, he believes that cryptocurrencies are restructuring international finance and are increasingly offering a wide range of unprecedented opportunities that need to be monitored.
The Congressman goes on to say that since cryptocurrencies are run over the internet, it makes the platforms vulnerable to being used by anti-state elements, terrorists and criminals.
I expect monitoring these groups will require a lot of manpower from our government and governments around the globe as these financial instruments are not just based here in the States, but are global in nature.
Digital currency operators and users are already pushing back today saying that for these products to operate efficiently, government intervention is not necessary and by the way not welcomed.
Let the battle begin…….
Have a wonderful Wednesday.
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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.