Market Commentary from February 2020

Calendar

2020

02/28/2020

Weekly

Friday Recap - 28th February 2020

Wow, what a week! The markets were down about 10% and it dragged down gold and silver with it. I was not expecting that and learned something new with this crash. What I learned is that gold does not hedge against a stock market crash. Instead, it hedges against a bond market crash. Bonds are a lagging indicator. Bonds crash after the economy crashes. The stock market is a leading indicator. So, if the Corona virus causes a recession, then bonds will falter and gold (and silver) will rise.... more

02/21/2020

Weekly

Friday Recap - 21st February 2020

Woo-woo. Nice Friday close. Gold up $24. The HUI close to 250. Silver at the magical $18.50 level. I had a feeling Q1 was going to be good. I was a bit nervous with the stock markets and jobs remaining strong, but we got a black swan - the corona virus. Now we wait and see if we get follow through. Will silver trend above $20 and make the miners fly? Let's hope so... more

02/01/2020

Monthly

January 2020 Commentary

The final Q4 and 2019 GDP numbers were released this week, and the economy is holding steady above 2% (currently around 2.3%). With both the GDP and employment numbers stable, the stock market has remained high. For nearly all of January, we had one new high after another (refer to daily S&P 500 chart below). Then this week the Coronavirus has pushed the stock market down. Today was the largest down day since August. Perhaps this 4-month uptrend is over... more