Gyroscopic Investing

Gold And Equities Running In Tandem, Pointing To More Monetary Stimulus?
Feb 17, 2014
Kitco News kicks off the week with Gary Wagner’s analysis of the gold market after breaking above $1,300 on Friday. “It certainly signals a major change in market sentiment,”? he says. Wagner adds that it is interesting how gold and equities are rallying at the same time. “It is a fairly rare occurrence to see gold and the equities markets run in tandem,”? he says. “And that tends to happen only when you have a scenario in which the Fed continues its loose monetary policy.”? Looking further at the U.S. economy, Wagner says he is certain it is improving. “The question is how quickly is the recovery coming along?”? Tune in now to get more of Wagner’s gold market analysis and hear where he expects the yellow metal to move next. Kitco News, February 17, 2014. (show less)

This would make sense. If PP averages 9% a year and we were down slightly last year, one of the senarios to get us back on track would be more then one part of PP chugging together higher OR gold moving on its own back to 1900. This morning we have stocks, gold and bonds moving up. You know that won't last long..

Why does he expect monetary stimulus if he thinks the economy is recovering? If the economy is recovering.....why does it need to be stimulated?

I agree that we are very likely to get more stimulus, but it's because the economy is not improving, it's deteriorating. The data is showing that, and will be the excuse (along with the weather) for the Fed to taper the taper.

I believe the "stimulus" is what is hurting the economy, so every blast of it makes the problem worse and provides the Fed justification for the next round.

Hold onto your gold and stocks guys.........