AIER: The Fed’s Policy Shift to Let Inflation Rip Higher Is Deeply Flawed

 By SIMON CONSTABLE

At the end of last month, Federal Reserve chairman Jerome Powell announced a shift in one of its decades-long policy goals. It’s a move that should worry investors and workers alike. Here’s what happened and why it’s a problem: 

At the Fed’s annual Jackson Hole symposium, Powell said that instead of targeting an annualized inflation rate of 2%, the institution would allow the rise in the cost of living to go above that rate for long periods. The idea, Powell explained, was to take account of long periods when inflation had remained stubbornly below its target.

Read more here.

WSJ: Which Stock-Market Sectors Should You Invest In?

 By SIMON CONSTABLE

Stock-market sectors generally don’t move in strict synchronization. Some will lead as others lag behind, and a key question for investors is which sector is poised to move up fastest next. Read more here.

WSJ: What is Contango And Backwardation?

 By SIMON CONSTABLE

Investors in commodities funds that hold futures contracts will hear or read the words contango and backwardation. The terms are apt to confuse even those with some Wall Street experience, but understanding them is vital for investors in commodities. Read more here.

Forbes: No One Should Be Short On Gold, Says Precious Metals Firm CPM

 By SIMON CONSTABLE 

Investors would be ill-advised to make financial bets that the price of gold will fall, according to a recent video report from commodities consulting firm CPM Group.

The video, hosted by Jeff Christian, founder, and managing partner of the company, notes that anyone with an outlook longer than a couple of weeks should be long. In other words, investors should bet on higher prices for the yellow metal. Read more here.

Korn Ferry: Is Germany Getting It Right?

 By SIMON CONSTABLE

When Germany’s economy appeared to be on a pandemic-pushed brink earlier this year, its government gave companies cash to keep employees on the payroll. Now, with the virus looking less threatening, some thought the helping hand might be removed. That wasn’t quite what happened. Read more here.

Forbes: Investors Set To More Than Double Gold Holdings, Prices To Surge: New Report Says

 By SIMON CONSTABLE

Investors are poised to pump an additional $2-3 trillion money into the gold market in the wake of the Covid-19 crisis, experts say.

That could mean a surge in the price of gold, such as that held in the SPDR Gold Shares exchange-traded fund, could surge by at least 30%.

Read more here.

Barron's: Demand for Pork Is Rising. How to Make a Profit on Lean Hogs.

 By SIMON CONSTABLE

Two different diseases on two different continents are set to leave the world without enough pigs to fulfill the demand for pork and other related meats. That, in turn, should cause a rally in the price of lean hogs over the next few weeks. Read more here.