The Chinese back from their holiday last week were seen buying gold overnight, that along with a weaker dollar has given the yellow metal a boost.
Controversies and rhetoric out of Washington continue to give everyone a migraine.
President Trump’s comments to the media after meeting with his Generals only adds fuel to the fire globally. The soon to be retired Senator Bob Corker, head of the Senate Foreign Relations Committee, said the President’s reckless threats toward other countries could set our nation on the path to World War III.
Wall Street traders not interested in getting involved in the Gold market at this time continue to be active in the currency market for some action.
The activity in the U.S. Dollar seems to be the barometer for the direction in the price of gold and should be watched closely.
Sounding Off
On this latest stock market rally over 5.12 trillion dollars of wealth has been added to investors pocket.
Most economists are indicating that the 4.2 percent unemployment rate is to be considered “full employment.”
So the question that comes to mind is, with an economy operating on all cylinders and a stock market breaking records every day, why in the world do we need a tax cut? Just look at the cost of the hurricanes that is exponentially increasing the country’s budget and the cost of healthcare and infrastructure not even counted yet. Why explode the country’s debt by adding a tax cut when it’s totally unnecessary?
The answer is “Corporate Greed.” The average American will only see a reduction of $1,000
per year in the proposed tax reform. Big Deal! Just look at the powers that be in Washington. In my opinion, Gary Cohen and Steven Mnunchin, both former Wall Street executives, couldn’t care less about getting middle class Americans a tax cut. Their agenda is all based on giving Wall Street and its executives a huge tax cut and pay raise so that they can go down in history as being the “The Heroes of Wall Street.”
Let’s hope not everyone on Capitol Hill is buying into this…story. I was tempted to use another phrase, but thought better of it even though it might have been more appropriate.
On Fox Business Friday Gary Cohen said, “We are committed to helping middle Americans live better lives.” Really Gary? You must be kidding? Also two weeks ago, I heard you say that with this tax cut Americans can now go out and buy new cars. Some might buy that line, but my hope is that when the smoke clears Americans will realize you are just attempting to fill the pockets of your buddies.
Or possibly after your tenure is up in Washington, both you and Steve can head back to your old firm, sit back and enjoy the rest of your corporate lives.
Their tax plan will only help widen the difference from the haves and the have nots. Washington needs to address the needs of the less fortunate in this country…not those who don’t think twice about spending thousands of dollars at a Manhattan steak house on their corporate account.
The cost of Social Security, Medicare and Medicaid will explode in the years to come and the folks who rely on these entitlements to survive will be left out on the streets. Mr. President, will this tax plan really make America great again or just make Wall Street great again? Oh by the way Mr. President, I hear you are re-writing a lot of Wall Street regulations that were imposed after the Financial crisis to keep the traders on Wall Street in check. Seeing it firsthand Mr. President I can guarantee you that with the proposed corporate tax cut and softening of Wall Street regulations the “Wild West” will once again emerge and that 5.12 trillion dollars that was gained in the first ten months of your Presidency will go right out the window as it did over 10 years ago.
Who said Atlantic city is dead, they just moved the casinos to Wall Street.
Have a wonderful Monday.
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.