Money Morning

Understanding Gold’s Massive Impact on Fed Maneuvering

gold-300x297

Just about everyone knows Alan Greenspan. As central bankers go, he may just be the most famous ever. Even today, 1 in 6 Americans still think he’s the current chair of the Federal Reserve. As Fed chief from 1987 until 2006, Greenspan oversaw the latter part of the greatest stock bull in history. For that, some […]

The post Understanding Gold’s Massive Impact on Fed Maneuvering appeared first on Money Morning – Only the News You Can Profit From.

The Tide Is Quickly Ebbing on This Tech Giant

Warren Buffett famously said at the height of the financial crisis that you only know who’s been swimming naked when the tide goes out.

Unfortunately for him and his shareholders at Berkshire Hathaway Inc. (BRK.A, BRK.B), it appears that one of the Sage of Omaha’s biggest holdings, International Business Machines Corp. (NYSE: IBM), has been skinny dipping for a long time.

This Bear Market Indicator Is Off the Mark

Investors are taught that bear markets can’t occur unless the Treasury yield curve inverts – that is, unless short-term interest rates are higher than long-term interest rates. 

And that can only happen if the Federal Reserve raises the Federal Funds rate, which is the short-term rate that the Fed controls.

But that measure may be off the mark this time, and here’s why…