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Why Wall St. Seasoned Pros Are Jumping Ship

Gold last traded at $1,325 an ounce. Silver at $16.41 an ounce.

NEWS SUMMARY: Precious metal prices rose over 1% after the Fed hiked interest rates a 1/4 point. U.S. stocks traded mixed despite an upbeat Fed outlook.

Gold Still A Good Insurance Policy As Rates Rise - Degussa -Kitco
"Gold has fallen to a three-week low as the Federal Reserve starts a two-day monetary policy meeting; however, one bullion firm said that it sees some buoyancy in the precious metals, despite the threat of higher interest rates. Although gold prices are testing support just above $1,300 an ounce, analysts at Degussa said that the current price could represent an attractive entry point for investors looking for some market insurance. 'At the current price, there is a good reason to expect that gold can serve as insurance against the vagaries of the fiat money system, providing its owner with optionality,' the analysts said in a recent report....'The Fed's tightening policy is like taking away the 'punch bowl,' and if it raises interest rates too much, the party would definitely come to an end. It is against this backdrop that gold, even in times of slightly higher real interest rates, is increasingly attracting investors, which has ultimately led to a price increase,' the analysts said....Degussa's comments come ahead of the Federal Reserve's widely expected interest-rate hike Wednesday."

crashless When Did the Stock Market Crash? -Motley Fool
"A stock market crash is loosely defined as a sudden and sharp decline in stock prices across a broad portion of the stock market. Crashes can be triggered by panic, economic factors, bursting of speculative bubbles, and these days, by automated trading technologies. Since 1772, the U.S. has experienced a total of 22 stock market crashes, but not all have been equally harsh or long-lasting. With that in mind, here are some of the most notable U.S. stock market crashes, and a brief rundown of the causes and results of each one....One of the worst stock market crashes in U.S. history was the Panic of 1907. The stock market fell by about 50% during a three-week period...which led to the collapse of the Knickerbocker Trust....The Crash of 1929 was the worst, and longest-lived crash we've had. From September 1929 through July 1932, the Dow Jones Industrial Average lost a staggering 89% of its value....October 19, 1987 was the largest one-day percentage drop in the Dow Jones Industrial Average in history. The Dow fell by 508 points on the day, which was a 22% drop at the time. For context, this would be like a one-day drop of 5,500 points in 2018."

Suddenly, it seems as though many experts are warning us about a potential stock market collapse. Truth is, America appears to be getting stronger by the day, not weaker. And so what if the stock market takes a big correction? It always comes back, right? Discover how to find the hidden positives and negatives of today's rising economic optimism in a brand new Swiss America Special Report: THE CRASHLESS SOCIETY.

Trump's Turning Point In History (And Ours) -Pontification Blog
"Progressives continue to suffer shock and awe that Trump, like a mythical Greek hero, did the almost-impossible by defeating Clinton. This man of destiny prevented our doom, although it remains to be seen for how long. He is tough but honest about his agenda....As part of the media's frenzied coup attempt to destroy Trump, CBS '60 Minutes' plans next weekend to interview a fame-and-wealth-seeking pornographic movie star who claims she and Trump had an affair. She says she was paid $170,000 not to discuss this matter in public, but now she will - which means that nothing she says can be trusted. CBS is changing from the Tiffany to the titillation network, airing smut for ratings. Did it do this when Progressive Bill Clinton was sexually accused? Bill and Hillary Clinton were given prime time on '60 Minutes' in a pre-taped, pre-election interview - basically a free ad - where Executive Producer Don Hewitt gave them the questions in advance, along with guaranteed do-overs if they slipped and said anything embarrassing. Republicans are never allowed to edit their CBS interviews like this...CBS is sinking from being fake news into Pornews, airing pornography as news. Anything to destroy Trump....Trump has struck fear into our smug unelected rulers who thought they were above the law and would pay no price for attempting a coup d'etat. Leftists now know this war with Trump could cost them their accumulated power. Trump has less than seven years left to serve, but supporters act as if he has made America permanently prosperous. Seven good years might be coming, or, God forbid, tomorrow morning's news could report that Trump's presidency has suddenly ended and the economy and dollar are in free fall. We should be prepared with honest money, prudent diversification, and individual responsibility."

Why Wall Street's Seasoned Pros Are Jumping Ship -Bonner/Bonner And Partners
"The Fed has announced a program of QT - quantitative tightening - in which it sells (or simply allows to expire) the bonds in its portfolio at a rate of $600 billion a year. Meanwhile, the federal government itself has cut taxes, forcing it to cover its shortfall by borrowing nearly $1 trillion in 2018. The combination will add nearly $2 trillion a year to the supply of bonds available for purchase. Who will buy them? At what price? Most likely, no one will buy... unless rates rise to make it worth their while. Most likely, rates will rise. Most likely, asset prices will fall. And some of Wall Street's most seasoned pros are bailing out. Bloomberg says famous analyst Dennis Gartman is selling: In Wednesday’s edition of his eponymous newsletter, the economist said he is 'calling for a major, multiyear top on the equity markets following the recent volatility and following the reversals to the downside that took place yesterday in the Dow Industrials; the Nasdaq; the S&P and the Russell 2000.' He said the forecast represented a 'watershed' moment. And founder of the DoubleLine Capital investment firm, Jeffrey Gundlach says so, too: 'We are late in the economic cycle... and it is unusual that the deficit is expanding... [adding stimulus this late in the cycle] has never happened before.' Gundlach sees the deficit getting worse, with 'a lot of bonds supplied to the market.' He predicts a negative rate of return for the S&P 500 this year. My conviction is high, higher than that the 10-year yield will break to the upside. And most likely, the feds will respond with even more EZ money policies. The Fed will cut rates to zero... and beyond. And the federal government will both cut taxes... and expand spending."

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