Jesse's Café Américain (pseudonym) is a popular financial and economics blog where host Jesse writes about the economy, market movements and the political shenanigans behind them. His charts on precious metals are an excellent resource for technical traders.
"The corporate bond market has all kinds of problems. I think investors should use the strength of junk bonds that's happened as a gift and get out of them. Corporate credit, as a percentage of GDP, has never been higher.
The leverage in the corporate economy is very bad, There's been a lot of buybacks — borrow money at low rates, buy back stocks — which of course, it's just turning the equity market into a CDO residual, an equity piece, that's getting thinner and thinner, riskier and riskier.
I think investors need to go to strong balance sheets. Strong balance sheets are going to be the way to survive during the zigzag of 2019."
"Goldman Sachs Group Inc. is leading a pack of bullish voices cheering for gold. The bank’s analysts led by Jeffrey Currie raised their price forecast for gold, predicting that over 12 months the metal will climb to $1,425 an ounce -- a level not seen in more than five years. Bullion has benefited as rising geopolitical tensions fuel central bank purchases, while fears of a recession helped boost demand from investors seeking 'defensive assets,' they said."
Bloomberg, Goldman Predicts Gold Prices to Climb to Highest Since 2013