Month: July 2021

Reuters/Shrutee Sarkar and Howard Schneider//7-16-2021

“U.S. President Joe Biden will reappoint current Federal Reserve Chair Jerome Powell for a second four-year term starting February next year, according to an overwhelming majority of economists polled by Reuters this week.”

USAGOLD note: Though much of the logic shared in this article is sound, we would not rule out Lael Brainard ending up with the nod. (Brainard is seated second from the right in the photo above.)

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BloombergBusinessWeek/Peter Coy/7-9-2021

“[F]or almost a year now, Bloomberg market reporters have been detecting anxiety from the pros that the era of negative correlation {between stocks and bonds] may be over or ending, replaced by an era of positive correlation in which stock and bond prices move together, amplifying volatility instead of dampening it.”

USAGOLD note: The kind of clear inverse correlation Coy alludes to in this article might not be available when both asset classes depend to a large degree on monetary largesse for value, rather than traditional market forces of supply and demand. Under those circumstances, gold stands out as a true hedge – one disconnected from direct central bank and/or government support. That, perhaps, is why many institutional investors are turning to it as a portfolio alternative.

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