In this March 22nd, audio nugget, market historian and author, Mr. Bob Hoye (chartsandmarkets.com) comments on Wednesday's FOMC rate hike (.25bps) and outlines an enticing case to accumulate mining shares!
1.10 - Gold mining shares, improving earnings.
5.00 - Post-bubble, financial contraction cycle.
8.20 - Yield curve inversion oftentimes results in a period of economic recession.
9.10 - The more intense the yield curve-inversion, the deeper the economic contraction.
10.00 - Inflation adjusted gold price hints at a bullish theme.
13.30 - Gold to energy ratio supports a multi-year rally scenario.
15.01 - The Fed Funds Futures contract exceeded the extreme Fed target level - the last two times this occurred, the Dot.com crisis and 1987 crash followed.
19.50 - The US Fed raised the overnight lending rate a quarter point today to 5% - current FFF's suggest strong probabilities of another quarter point hike in 6 weeks.
27.14 - Bob suggests accumulating PM's share on the prospect of increasing earnings.
28.01 - Gold shares indexes could outperform the S&P.
31.05 - Buying price pullbacks may be an appropriate strategy for PMs miners.
31.25 - PMs investments make ideal beta candidates for balanced investment portfolios.
About the author
Chris Waltzek is host, executive producer, writer/editor, best-selling author, webmaster, sound engineer and computer guru at Goldseek.com Radio. He earned his bachelors degree in Business Economics and holds a dual MBA in Business Economics & Information Systems. Upon graduation he worked as the firm-wide Industry Analyst at one of the nations largest law firms, Jones, Day, Reavis, Pogue. Chris is currently a Ph.D. student in Management / Finance at NCU.
