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The markets are sending confounding messages

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Real Investment Advice/Michael Lebowitz and Jack Scott/7-29-2020

“Unknowingly, most investors are managing their wealth amid a dense fog manufactured by central banks. The confounding signals and lack of visibility emanating from equities, bonds, the dollar, precious metals, and other markets are baffling. In many cases, they are contradictory. Most troubling, they threaten our financial well-being. To make things tougher, many of these markets sit near critical technical levels. Breakouts through or bounces off of those levels may pose significant implications for the economy and markets. In this piece, we shine our fog lights on markets to expose these faulty signals and hidden risks.”

USAGOLD note:  Intriguing discussion that will be of interest among those who share Lebowitz and Scott’s observation that “[g]auges to help manage risk are obscured and disfigured. Even more confusing, some signals are contradictory to each other.”

Cartoon of hedge fund manager telling a client over the phone to buy gold - Ed Stein cartoon