While some financial experts think the economy is on the right track, financial advisor Suze Orman says she’s preparing for the next stock market crash, which she says is inevitable and could be imminent. Orman said investment fads like GameStop and the ongoing pandemic have her worried. Given how long the market has been surging, she feels it’s been too long since the last crash to stay this high much longer. While the future of the market is speculated, gold may have had its best week in five.
Market Watch via Yahoo finance/Sigrid Forberg
Suze Orman thinks a market crash could be imminent — here’s what to do
The stock market has been breaking records over the last year while the real economy has struggled in the face of the pandemic.
And that discrepancy is starting to make experts a little nervous.
One expert, Suze Orman, would go so far as to say she’s now preparing for an inevitable crash.
And a famous measurement popularized by Warren Buffett — known as the Buffet Indicator — shows Orman might be onto something.
Here’s an explanation of where the concern is coming from and some techniques you can use to keep your investment portfolio growing even if the market goes south.
Suze Orman has been avidly watching the market for decades now. She knows ups and downs are to be expected, but what she’s seeing happen with investment fads like GameStop has her concerned.
“I don’t like what I see happening in the market right now,” Orman said in a video for CNBC. “The economy has been horrible, but the stock market has been going.”
While investing is as easy now as using a smartphone app, Orman is concerned about where we can go from these record highs.
And even with stimulus checks, which are still going out, and the real estate market breaking its own records last year, Orman worries about what will come with the coronavirus — especially as new variants continue to pop up.
And given how long the market has been surging, she feels it’s just been too long since the last crash to stay this high much longer.
“This reminds me of 2000 all over again,” Orman says.
Read what the Buffet Indicator is saying, here.
Reuters via CNBC/Sumita Layek
Gold eyes best week in five as U.S. yields pull back
Gold prices firmed near a seven-week peak on Friday, on course to register their best week in five, as a retreat in U.S. Treasury yields and the dollar lifted the metal’s appeal, Reuters reports.
Spot gold had risen 0.3% to $1,767.80 per ounce by 0945 GMT, having hit its highest since Feb. 26 at $1,769.37 on Thursday. It is up 1.4% so far this week.
U.S. gold futures were steady at $1,767.10.
“We’re seeing gold going up mostly because yields are going down and the dollar is weakening,” ActivTrades Chief Analyst Carlo Alberto De Casa said.
The dollar eased against rivals, while benchmark U.S. Treasury yields hovered near a one-month low hit in the previous session.
Gold’s gains came despite U.S. data showcasing robust retail sales and a significant drop in weekly jobless claims and a record growth in China’s first-quarter GDP.
The markets are trusting the Federal Reserve to keep interest rates lower for longer, so even if inflation does jump above 2% for a few weeks or months, central bank tapering is still a bit farther and this is a pulling up bullion, De Casa said.
Easy monetary policy tends to weigh on government bond yields, increasing the appeal of non-yielding gold.
The drop in 10-year yields below the key 1.60% mark “has allowed spot gold to break above its 50-day simple moving average (SMA) for the first time since early February,” FXTM Market Analyst Han Tan said in a note.
“A decisive breach of its 100-day SMA, which currently resides around the psychologically important $1,800, may just do the trick as a clarion call for gold bulls to rush back in.”
Silver rose 0.4% to $25.95 per ounce, and was up 2.9% for the week. Palladium slipped 0.4% to $2,730.77, but gained 3.6% for the week. Platinum was steady at $1,193.27.
Money supply growing faster than economy will stimulate inflation: Dick Bove
Odeon Capital Group chief financial strategist Dick Bove talks about bank earnings in the first quarter, the Federal Reserve, and his outlook for the economy amid inflation concerns.
Watch the full video, here.