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Fed exit strategy: the mother of all head fakes

 
“Exit strategy” is the current buzz phrase among market watchers, with the dollar rallying in recent days and weeks on expectations that all is well with the US economy again, and that the Fed can now start thinking about ways of selling assets and “exiting” from its current commitment to perpetual quantitative easing.

Given this growing narrative and the fact that US stocks continue to race higher, gold and silver remain under pressure – with a “sell the rallies” mentality continuing to predominate trading in these metals. This could change though, depending on what Fed chairman Bernanke says in congressional testimony later today (if he sounds more dovish on monetary policy and pessimistic about the economy than expected, this should support the metals; in the opposite case, the metals could go lower).

From a longer-term perspective, it really doesn’t matter what Bernanke says. Talk from Fed officials about “exit strategies” is nothing more than a head fake: a way of convincing the markets that central banks are still in control, and that there’s nothing to worry about. The central planners…

Read the complete article at GoldMoney here.

# Here you can see WHY it’s crucial to own physical gold & silver now, and HOW you can buy [and sell] it.

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Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

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