There was a tremendous amount of volatility in the stock market this week with the NASDAQ entering correction territory and then rebounding. Is this just a blip on the radar? Or is the biggest bubble ever running out of steam? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about it. He also digs into what’s going on in the housing market and what it’s telling us about the broader economy.
Globally, gold-holding in ETFs increased for the ninth straight month in August with the appetite for gold notably increasing in Asian markets.
ETFs added a net 39 tons of gold last month, according to the latest data from the World Gold Council.
Last month, we reported that mortgage delinquencies charted their biggest quarterly rise ever. Digging more deeply into the numbers, we find even more trouble brewing in the subprime mortgage market.
Of the 8 million active mortgages the FHA insures, 17% were delinquent in July. That ranks as the highest level in history. That translates to about 1.4 million delinquent FHA loans.
Central banks bought over 27 tons of gold in July, but big sales by two banks dropped net global purchases to 8.8 tons, according to the latest data by the World Gold Council.
Peter Schiff recently called the stock market the biggest bubble ever. But he says he should have qualified that by saying it’s the biggest stock market bubble ever. There is an even bigger bubble floating out there – the dollar bubble. Peter talked about that in his podcast.
Last month, the Federal Reserve moved the goalposts when it changed its inflation targeting policy. In the past, the central bank has targeted a 2% inflation rate as measured by CPI. Now it will shift to “average inflation targeting.” In effect, the Fed will allow the CPI to run “moderately” over 2% “for some time” to balance out periods where it runs under that level.
We have argued that this isn’t some kind of technical policy shift due to new economic insights. It’s a necessary move because the Fed can’t stop printing money and price inflation is an inevitable side-effect.
In a podcast early last week, Peter Schiff called the surging stock market “the biggest bubble ever” and talked about some of the absurdities in the market, particularly in the Nasdaq. Then on Thursday, that bubble may have popped. Peter talked about it in his podcast Friday.
Peter Schiff recently appeared on RT Boom Bust with Ben Swann to talk about safe-haven assets in the age of COVID-19. Peter made the case for gold, saying if you understand its role as money, you know you should always have some. He also debated Swann on the long-term value of bitcoin.
Can you believe it’s already Labor Day weekend?
In some ways, 2020’s stay has dragged on seemingly forever — like an unwanted aunt visiting “for a while.” But in other ways, 2020 has just flown by. I mean, it’s already fall — although I live in north Florida so it feels like anything but fall.