James Rickards: ‘Fed Will Have To Go Dovish’ And Bonds, Gold Will Rally

Back on December 27, James (Jim) Rickards, an American lawyer, economist, investment banker, and best-selling author appeared on CNBC TV’s Squawk Box (Asia) and made this prediction about Trump’s first term in the Oval Office:

I definitely see a stock market correction, perhaps a disorderly one… I’m not sure the Fed is ready to cut rates yet. But I expect it will raise rates in March. I think that’s on track. But beyond that, we’re going to go into a recession or the stock market is going to have a very severe correction. Either one of those will cause the Fed to back-pedal.

On January 12, James Rickards elaborated on this forecast on The Daily Reckoning website. He informed readers of “Be Prepared for a Violent Fed Reversal”:

My short-term expectation is the Fed will raise rates in March. My intermediate-term expectation is that the market is going to be disappointed with the stimulus, the Fed tightening is going to be at the wrong time, the stock market’s going to “fall out of bed,” the economy’s going to slow down, and the Fed will have to go dovish.

At that point you’re going to see rallies in bonds, rallies in gold, and a decline in the stock market…

(Editor’s note: Bold added for emphasis)

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

Source:

Rickards, James. “Be Prepared for a Violent Fed Reversal.” The Daily Reckoning. 12 Jan. 2017. (https://dailyreckoning.com/be-prepared-violent-fed-reversal/). 23 Jan. 2017.

Share

Tags: , , , , ,

No comments yet.

Leave a comment

Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

PLEASE RATE this blog HERE,
and PLEASE VOTE for the blog below:



Thank you very, very much!
Advertising Disclosure here.
ANY CHARACTER HERE
Emergency Foods Review coming soon.
ANY CHARACTER HERE
Legacy Food Storage Review coming soon
ANY CHARACTER HERE
MyPatriotSupply.com reviewed HERE
ANY CHARACTER HERE
Buy Gold And Silver Coins BGASC reviewed HERE
ANY CHARACTER HERE
BulletSafe reviewed HERE
ANY CHARACTER HERE
BullionVault BullionVault.com reviewed HERE
This project dedicated to St. Jude
Patron Saint of Desperate Situations

Categories

 

Archives