The Trump Policies Work, America’s V-Shaped Recovery is Happening Despite Democrats Sandbagging

Besides becoming an energy exporter for the 1st time in America’s history and causing American Industry to come home due to increasing tariffs, according to government statistics President Trump has also caused US exports to increase $13.6-B from the previous month to $158.3-B in June 2020. After being depressed by the COVID-19 pandemic, it was the 1st gain since February. Exports of goods increased $13.0-B, led by automotive vehicles, parts, and engines, capital goods, industrial supplies and materials . Also, exports of services increased $0.6-B; all positive indicators that the US economy has turned upward.

The Trump Policies Work, America’s V-Shaped Recovery is Happening Despite Democrats Sandbagging
Bruce Willard Barren on LinkedIn • 2 min read
By Paul Ebeling on August 23, 2020

 

Weakening US Dollar Driving Gold to New Record Prices

Besides being a good stimulus for investment, strengthening gold to the US Dollar is also good for exports. This can drive down unemployment so there is a parallel benefit here which the average American is not aware of. We need exports plus cheaper US goods in the international market to recover from our pandemic troubles. Just remember this, from an economist point of view, rising gold prices are golden and yes, expect gold to continue to follow this pattern as a hedge to the US Dollar.

Weakening US Dollar Driving Gold to New Record Prices
Bruce Willard Barren on LinkedIn • 2 min read
By Paul Ebeling on July 30, 2020

 

Gold is Temperamental, Silver is Really Temperamental, but There is a Long List of Bullish Drivers

As the dollar continues to fluctuate, most downward , look for gold and silver to be the alternate investment, because of the pressures from the growing Federal deficit blamed in part because of COVID-19 rescue efforts or more importantly, the wildly spending by Congress – especially on their pet pork barrel projects – which will do little to ease the pain of unemployment.

Naturally, this will cause both to rise to new heights as it becomes the watchful eye of investors – a ranking in the favorites. Election year uncontrolled spending will be a major contributor to this. I expect gold to be in the $2,500 range by year-end with continued appreciation in 2021. Silver, the little brother to gold, should follow a similar pattern to gold but at a slower pace.

Gold is Temperamental, Silver is Really Temperamental, but There is a Long List of Bullish Drivers
Bruce Willard Barren on LinkedIn • 3 min read
By Paul Ebeling on July 29, 2020

 

Housing, Auto Demand Are Standouts in V-Shaped Recovery

When you think about it, the things carrying the economy for the next year or so will be consumption and residential investment. Cars and housing are a vital part of both of those!

Housing, Auto Demand Are Standouts in V-Shaped Recovery
Bruce Willard Barren on LinkedIn • 3 min read
By Paul Ebeling on August 6, 2020

 

US Existing Home Sales Up by Record 20.7% After Slumping for 3 Months

The real question at hand; can this demand for existing homes be sustained in 2021 and can it help in the recovery of new home sales despite the fact that lender criteria has been tightened materially by some financial institutions. This has been caused in part due to the leniency in foreclosures and the pandemic.

My answer is probably yes. This has been good news by existing homeowners which is allowing them more time to sell their home. According to ATTOM Data Solutions, one of the most trusted curators of the nation’s premier property database and 1st property data provider of Data-as-a-Service (DaaS), is that it now takes 841 days to foreclose on a home, compared to 713 days in 2017 in part persuading financial institutions that it is not in their best interests for quick foreclosures.

US Existing Home Sales Up by Record 20.7% After Slumping for 3 Months
Bruce Willard Barren on LinkedIn • 3 min read
By Paul Ebeling on July 23, 2020

 

Gold, Silver Rally Hard on Softening USD

Silver shares some ‘safe haven’ attributes with gold but is inherently more leveraged to global growth and manufacturing recovery. Both however are about to breakout as gold breaks through the 1900oz market with silver following the same pattern.

Remember as the US economy continues only in a slightly recovery pattern, both gold and silver will further accelerate in value, due also in part because of the weakening US Dollar and uncertainty of a global recovery because of Covid-19. The real question here is will there be a phase 2 or even a Phase 3 of the pandemic which until a proven vaccine is proven, world economies will continue to be held hosted, causing further increases is gold and silver as more safe investments.

Gold, Silver Rally Hard on Softening USD
Bruce Willard Barren on LinkedIn • 2 min read
By Paul Ebeling on July 23, 2020

 

Branded Rx Drug Prices are a Heavy Tax on the American People

While prices for common generic drugs have dropped by 37% since 2014, branded drug prices have increased by over 60%.

Here’s where the problem lies for that is what physicians are recommending, not generics but prescription drugs, especially the cost of lifesaving medications that millions of Americans, especially seniors, must rely on each day.

To me, it is time to focus on some basic needs of the American people and drug prescription costs is just one of them.

Finally, our President, using his authority under his Executive Orders, has chosen to focus on this field too.

Congress should had done it years ago, they should learn to serve us, not themselves.

Branded Rx Drug Prices are a Heavy Tax on the American People
Bruce Willard Barren on LinkedIn • 3 min read

By Bruce WD Barren
Editor’s Note: Economist Bruce WD Barren is Chairman of The EMCO/ Hanover Group. He is a regular contributor to Live Trading News.

Closed Stores=Big Bonuses

In 2005, the definition of the ordinary course of business defense should not have been allowed to insulate payments from recovery, only if they are made according to what is considered the ordinary course in the creditor’s industry. Reclassifying or allowing executive bonuses are not justifiable.

Closed Stores=Big Bonuses
Bruce Willard Barren on LinkedIn • 5 min read
By Paul Ebeling on July 18, 2020

 

US 30-yr Fixed Rate Mortgage Rate Dives to 50-yr Lows

Mortgage rates are forecasted to fall through November, 2021 when they are anticipated to bottom out. The reason is that real estate is a core element to any economic recovery in the United States and is also a feeder to many other industries that must continue in a positive trend in order to put us back on our own feet. It is also important if this country is going to its reverse unemployment trend, which will be one of the most important platforms in any presidential election year. The old adage is still true: as real goes, so goes the economy where consumer confidence typically leads the way to economic well being.

A Key objective of all American workers has always been to own a home which is our way to economic security, especially leading into one’s retirement years. According to Property Wire, the housing market activity is bouncing back to higher levels than before the lockdown based on home sales, demand and house price growth, Zoopla’s House Price Index has found. The number of agreed home sales has rebounded by 4% between early March and May. House price growth has risen to 2.4% in May, up from 1.6% at the start of the year. A positive indicator is that buyer demand in May was 46% higher than in early March, when demand for housing fell by 70%.

US 30-yr Fixed Rate Mortgage Rate Dives to 50-yr Lows
Bruce Willard Barren on LinkedIn • 3 min read
By Paul Ebeling on July 17, 2020