This Time Rate Cuts Will Backfire – Ep. 483

This Time Rate Cuts Will Backfire – Ep. 483



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DJIA Record High Today
Dow Jones set a record high today, closing above 27,000 for the first time ever. We added 227.88 points on the day. We closed at 27,088.08. The record high, 27,088.45 set just before the close. You know, we added to yesterday's gains, the S&P 500 was also up again - not taking out the record that was set yesterday, but we did, for the second day in a row managed to trade above the 3000 mark, although we have yet to close above it - ever so close today: 2999.91. But a very small percentage gain for the S&P, not even a quarter of 1%.
Russell 2000 Down .5%
Broader market was weaker. The NASDAQ was actually down slightly - 6.5 points. The weakest index being the Russell 2000, down almost a half of a percent. It was lower during the day. Again, the Russell 2000 is the index that is most sensitive to the domestic economy. I've pointed out on this podcast many times that it is the index that is the weakest, and is not even close to making a new high. And I don't believe it will. I think the broader market is going to roll over, and the small caps are going to lead the way.
Traders Weren't Paying Attention to Bond Market
In fact, if the traders were paying attention to what was going on in the bond market, we probably would have seen a bigger selloff today. I think we still have some euphoria left over from the two-day "Dove Fest" where Fed Chairman Jerome Powell was up on Capitol Hill basically green-lighting the July rate cut, which is coming up in a couple of weeks. Remember, when we got that better than expected nonfarm payroll report, the odds of a rate cut in July went down from about 100% to maybe 91%, and the odds really came down for the probability of a 50 basis points cut. So it was pretty much 91%, I think, 25 basis points, and that was it.
Odds of Rate Cut in July Back up to 100%
But after Powell released his prepared remarks, before he even made it up to Capitol Hill - just merely when the markets got a look at his prepared testimony, the odds of a rate cut in July immediately went back up to 100%, and, in fact the odds of a 50 basis point cut went back up to 20%. Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

Episoder(1078)

You Know the Bubble’s About to Pop When Jim Cramer Gives Germany Economic Advice – Ep. 36

You Know the Bubble’s About to Pop When Jim Cramer Gives Germany Economic Advice – Ep. 36

You Know the Bubble's About to Pop When Jim Cramer Gives Germany Economic Advice Ep. 36 * Oil and Russia viewed to be at the epicenter of this week's market chaos * Why is the oil price dropping? The market anticipates a drop in demand due to global recession * Winding down of QE triggering market instability * Economic data still pointing to weakness * Russia raised interest rates to 17% * Ruble crisis is a "dress rehearsal" for the dollar crisis * Our currency crisis will be worse because of our debt * Euro and Yen rallying * This morning gold was up, down, ended up * Volatility indicates changing trends * A recession in the U.S. means QE4 Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

17 Des 201424min

Yellen’s Recovery is as real as George ‘s Beach House Ep. 35

Yellen’s Recovery is as real as George ‘s Beach House Ep. 35

Yellen's Recovery is as real as George Costanza's Hamptons Beach House Ep. 35 * Volatile Friday followed by Monday rally trend * The stock market has rallied very high very fast with little technical support. * The gold market had its best week relative to equities. * Only a dozen markets have beaten gold this year. * Rally started with Michigan Consumer Sentiment assisted by Dodd/Frank revisions. * The dollar was mixed at Friday close. * The oil market is indicative of the Fed's movements. * The Fed's history predicts continued to support for bubbles with additional QE, despite reports to the contrary. * QE4 will be bigger than previous QE's and will precipitate higher oil prices. * The pretense that QE is over has fueled the market, but QE4 will trigger the bursting of multiple bubbles. Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

13 Des 201430min

Was the U.S. Oil Boom Just Another Fed Inflated Bubble and is it Contained? Ep. 34

Was the U.S. Oil Boom Just Another Fed Inflated Bubble and is it Contained? Ep. 34

Was the U.S. Oil Boom Just Another Fed Inflated Bubble and is it Contained? Ep. 34 * If oil goes down to $35/barrel we will not be able to produce oil for export at that price. * It is no accident that oil prices are dropping as the Fed is ending QE. * What are the implications for the U.S. Economy if the Oil Bubble bursts? * Good jobs in the industry sector will go away. * Oil sector business loans will default * Investors will lose money. * The fallout will be bigger than the dot com bubble. * If oil was a bubble fueled by cheap Fed money, what's next? * If the collapsing oil prices threaten recession, the Fed may launch QE4. * If the Fed does not launch QE4, other bubbles will be affected. Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

12 Des 201419min

Much Ado About Nothing and Economic-Policy Truthers Ep. 33

Much Ado About Nothing and Economic-Policy Truthers Ep. 33

Much Ado About Nothing and Economic-Policy Truthers Ep. 33 * Catalyst for the rally was the Retail Sales Report * Cars represent the largest part of the gain * Any slight good news is overblown * Bad news is ignored * Economy is not driven by spending * Economy is driven by savings and production * Gold stable and up on the year against the dollar * Those who question the Government's numbers are being called "Truthers" Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

12 Des 201423min

Tax Loss Selling in Bitcoin Ep. 32

Tax Loss Selling in Bitcoin Ep. 32

Tax Loss Selling in Bitcoin Ep.32 * In 2014 Bitcoin was the worst-performing financial asset * Spending bitcoins triggers a taxable event * Spending or selling at a loss also reflects on your taxes * This holiday season, harvest tax losses while shopping * Write-off could exceed value of gift * You can also buy bitcoins back at a savings from original cost if you wait 30 days * Buy Gold and Silver while harvesting tax loss Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

10 Des 201420min

Fannie and Freddie Guarantee Bigger Losses

Fannie and Freddie Guarantee Bigger Losses

* U.S. Taxpayers will be forced to guarantee mortgages with 3% down * Qualifiers are low-income or have not owned a home for 3 years * Government is spinning this as "prudent" * Buyers have very little skin in the game * If real estate prices plummet, walking away is an easy choice Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

10 Des 201412min

Does Market Volatility Portend a Change of Trend? Ep. 30

Does Market Volatility Portend a Change of Trend? Ep. 30

* Stock market roller coaster ride this week * Chinese market plummets * Forex markets: Yen rallies after 7-year low * The Swiss may discourage the EU against QE * Unwarranted U.S.optimism as negative data is ignored * Gold and Silver strong despite bad press * Gold outperforming the Russel 2000 * Deficit in Manufactured Goods hit all-time high * China reports record trade surplus Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

10 Des 201420min

Draghi Said ECB Considered Buying Every Asset Except Gold: Ep. 29

Draghi Said ECB Considered Buying Every Asset Except Gold: Ep. 29

* What is the goal of the "Inflation Mandate? * What is the exact number of the mandate? * If the real mandate is "less than 2%" they're already there * The European economy is expecting another QE, but I don't expect it. * How they plan QE if they don't know what they are going to buy? * Draghi cites success of U.S. QE, but the Fed has not shrunk its balance sheet. * They discussed buying all assets except gold because this would highlight failure of QE Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

4 Des 201425min

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