Today one of the greats in the business warned that we are on the “other side” of an unprecedented monetary experiment.
By Peter Boockvar, author of the Boock Report
March 27 (King World News) – Here is what Peter Boockvar wrote as the world awaits the next round of monetary madness: Not that we needed a reminder after the stock market tantrum in February but the recent market action states again that we are clearly not in 2017 anymore (record level of market placidity)…
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Other Side Of An Unprecedented Monetary Experiment
I argue again that the changing interest rate and central bank balance sheet landscape is the main reason for this change in volatility and added fragility. We are on the other side of an unprecedented experience of monetary largess and experiment.
On the other hand, I’m hopeful that the tariff battle will not lead to negative economic consequences as the overall numbers are small and deals will mostly likely be had.
Transportation Costs Are Skyrocketing
One last thing on inflation. I continue to hear stories from business (both publicly traded to privately based, large and small) that transportation costs of anything trucked are rising dramatically. I use the word ‘dramatically’ because one business told me yesterday that its shipping costs are up 40%. On Friday I highlighted what General Mills said about it crimping margins and I expect to hear much more about this in coming weeks when Q1 earnings are released.
The Bottom Line
King World News note: The bottom line is that the Fed remains trapped. That’s why they are raising rates quickly so they will be able to lower them as the economy and stock markets both roll over. The gold market is anticipating this and that is why we have started the next leg higher after the mid-cycle correction bottomed at $1,050 at the end of 2015. As the price of gold surges above $1,400, that is when the real fireworks will begin.
***Also Just Released James Turk – Gold & Silver Finally Ready For Upside Explosions! CLICK HERE.
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