Stocks and precious metals soared off the lows in March, thanks to Powell’s promise to do “Whatever It Takes” to support the economy and the markets following the widespread implementation of lockdowns to mitigate the spread of Covid-19. He delivered $3 trillion dollars in QE that almost doubled the size of the balance sheet in just three months. It did the job of boosting stocks back up to new highs while it stopped the bleeding in economic activity. Meanwhile the dollar dropped more than 10%. Gold and Silver soared to highs not seen in many years or ever.
Because American’s don’t enjoy 100% (unlimited cost) state-covered health care, the decision about your quality of life comes down to the type of health insurance individuals should opt for. And, in general, that decision boils down to addressing the question:
Should the Fed worry about inflation? If all three of these assets breakout at the same time, they would suggest the Fed will have to deal with a new round of inflation worries.
