For the very first time in 108 years, the Fed just ran at a net loss, and it was huge. To be specific, the Fed reported a loss of $ 114.3 billion in 2023.
Investors are wise to acquire some assets that aren’t dependent on confidence or well-functioning systems, to hold their value. Physical bullion is one of the assets to consider.
Since gold is both an investment and a consumer good, the yellow metal also delivers a positive correlation with equities and other risk assets in a positive market.
Any perception that banks require special exemptions for holding U.S. government debt could shake global confidence in Treasuries as a safe-haven asset and could impact the status of the U.S. dollar.
Now the Fed is at an important turning point. Having tightened to control inflation, they have to decide what’s next. The first question is whether inflation is truly under control...
