The Curious Case of Secretary Mnuchin’s Visit to Fort Knox
Treasury Secretary Steven Mnuchin recently visited the United States Bullion Depository at Fort Knox. According to Bloomberg, Mnuchin stated that “The last time anybody went in to see the gold, other than the Fort Knox people, was in 1974 when there was a congressional visit. And the last time it was counted was actually in 1953.” It’s interesting that...
The Russell 2000’s Price to Earnings Ratio is Higher Than You Think
In what will likely come as a shock to many investors, the price to earnings ratio of the companies in the Russell 2000 index of small-cap stocks has been shown to be much higher than normally reported. Most publications that report the Russell 2000’s P/E ratio apparently fail to take into account the earnings of companies that are losing...
Housing Bubbles in Major Cities Sound the Alarm
Housing prices in Denver, Houston, Miami, and the Washington, DC metropolitan area are officially considered overvalued. While that’s probably not news to the people who live in those areas, it’s yet more evidence that the housing market in the United States is reaching, if not already well into, bubble territory. Surprisingly, markets in San Francisco and New York City are...
Sound Financial Planning Prepares for More Than Just Retirement
Millions of Americans actively plan for retirement and arrange their finances with that end in mind. But as daunting as retirement and the loss of steady income can seem, for most people that won’t occur for decades. The more pressing reality, one which most Americans will face and which few are prepared for, is job loss. In many cases,...
Barcelona Attacks Not Affecting Gold or Markets
The terrorist attack in Barcelona may have shaken up Europe, but its effects on US markets appeared to be negligible. The Dow was down over 274 points, posting its biggest one-day loss in over three months. Domestic concerns seemed to be the primary cause for that, however, with disappointing business earnings numbers distressing investors. Further concerns over shakeups within...
Alan Greenspan Warns of Bond Bubble
Former Federal Reserve Chairman Alan Greenspan warned recently that the bond market bubble is in danger of bursting sometime soon. The originator of the phrase “irrational exuberance” is once again pointing out the dangers of low-interest rates and the likelihood that when rates start rising they will rise rapidly. Greenspan’s Fed and Low-Interest Rates The irony of Greenspan’s most recent comments...