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US Markets vs Precious Metals – Sentiment, Fed Policy, and Fund Flows

Cory
October 30, 2019

Jordan Roy-Byrne joins me today to outline the importance of moves int he US markets vs precious metals. We discuss overall sentiment in both sectors which is one of the key drivers. Also short term compared to long term Fed policy related to a potential recession is key in determining short to medium term moves. Finally general fund flows are short term drivers to price.

Click here to visit Jordan’s site – The Daily Gold.

Discussion
9 Comments
    CFS
    Oct 30, 2019 30:59 AM

    With McDonalds up almost 2% today, either the poor must be feeling rich, or the rich can’t afford a decent restaurant any more. hmmm !

    Johnson & Johnson up over 2%….must be people going to McDs needing Tums.

      Oct 30, 2019 30:23 PM

      It’s mostly just inflation.

      April 30, 2019:
      -McDonald’s US sales growth was driven by the average customer spending more at the fast-food giant, even as customer traffic slipped, the company announced during its first-quarter earnings call on Tuesday.

      -Customers’ average check increased due to higher prices and a shift in what menu items they purchased, as more people ordered for delivery and via kiosks.

      McDonald’s is convincing customers to pay more as the fast-food giant ditches its Dollar Menu roots and raises prices

      https://www.businessinsider.com/mcdonalds-deals-cost-more-dollar-menu-era-ends-2019-4

        Oct 30, 2019 30:12 PM

        McDonald’s is convincing customers to pay more as the fast-food giant ditches its Dollar Menu roots and raises prices

        Just one more reason not to eat there.

          Oct 31, 2019 31:04 AM

          Super Size Me…………was a good look at McD………

    CFS
    Oct 30, 2019 30:05 PM

    https://www.marketwatch.com/story/treasury-yields-edge-lower-ahead-of-gdp-fed-decision-2019-10-30?mod=mw_latestnews

    While Powell is signalling no interest rate changes for now (and he may be right for December, (boosted by Christmas sales) I believe there will be at least 3 interest rate cuts next year.
    Although I had been thinking the US Dollar might be topping out and falling, I believe it is topping and will be in a topping process for quite a while, as Europeans buying of U.S. Treasuries drives the dollar up and excessive US Government spending drives the dollar down.
    In the meantime the US will lower interest rates simply to both bolster the stock market AND to keep the millstone interest rate cost of the National Debt from becoming the majority of the national budget.

      Oct 30, 2019 30:05 PM

      Sound logic in my eyes CFS. All this seems to be contributing to muted moves in gold which does somewhat defy fundamentals. People are loving the frothy highs in the stock market.

    CFS
    Oct 30, 2019 30:24 PM

    Meanwhile the lack of regulation of Monopolies which has occurred during the Bush, Clinton, Obama eras has allowed crony capitalism (AND bought and paid for politicians) to develop.

    https://www.theatlantic.com/ideas/archive/2019/10/europe-not-america-home-free-market/600859/

    I think I understand the cause perhaps….
    The break up of AT&T was messy for a while and drew criticism and no President or Congress-critter ever wants to slow down GDP or lower the kickbacks they get from lobbyists.

    But these Political economist boobs do not understand the effect of monopolies in slowing down growth. Competitors are bought out to decrease competition.
    A large company just like a large Government is NEVER run as efficiently as a medium or smaller sized one (often out of necessity….a great driver)

    I cannot even remember the last time there was significant wnti-trust action, although we may perhaps see it sometime in the future for Google or Facebook.

    Oct 30, 2019 30:06 PM

    HL with a nice little breakout.

      Oct 31, 2019 31:45 AM

      Added to PVG @ $9.25 US today.