Danielle DiMartino Booth: Now is a Pivotal Time for Gold Investors

Danielle discusses her book and why it’s important that people understand the way central bank policies affect their lives. Her book reveals how the Fed has lost its way due to creating monetary policy based on market patterns and politics instead of economic metrics. The Fed is increasingly becoming backed into a corner ever since the money printing of 2008 with the introduction of “Zero Interest Rate Policies” and “Quantitative Easing.” Now the Fed has again become dovish over seemingly small corrections occurring in the markets.

Gold has been a splendid hedge during times of financial disruption. We’ve now had a full on reversal of the global reflation trade. We are seeing the consequences with China’s economy slowing along with Europe’s. Right now is a very pivotal time for investors to seek out the protection of gold.

Historically changes in unemployment rates can portend a coming recession. Current market rallys are useful for nimble traders but those who are concerned about the mid to long-term need to realize that these are rallies to rent not to own.

For her calling the housing crisis was not that difficult back in 2008 but she says, “I am guilty of having fought the Fed.” She cautions that you have to follow where the liquidity is going even if that conflicts with the fundamentals.

Pension plans are the ticking time bomb, and this will be revealed once this chapter of history is over and this is something all long-term macro investors should observe.

Time Stamp References:
0:45 – Federal Reserve Policies
2:00 – Fed is backed into a corner.
4:00 – Reflation trade reversal.
5:30 – Unemployment and recessions.
7:15 – Housing Bubble of 2008.
8:30 – Follow the liquidity.
9:15 – Pensions are going to be hit.

Talking Points From This Week’s Episode
• People need to understand central bank policies.
• Fed has once again become dovish.
• Gold is an ideal hedge.
• Pension funds are a ticking time bomb.

Danielle DiMartino Booth is a global thought leader on monetary policy and economics. She is the author of FED UP: An Insider’s Take on Why the Federal Reserve is Bad for America. Danielle founded Money Strong LLC in 2015. Through her economic consultancy, she has published a weekly newsletter for 140 consecutive weeks. Her writings are regularly featured on Linked In, Seeking Alpha, Nasdaq, Talk Markets and dozens of other websites. In affiliation with Quill Intelligence, DiMartino Booth also publishes a weekly newsletter subscribed to by institutional investors.

DiMartino Booth is a full-time columnist for Bloomberg View, a business speaker, and a commentator frequently featured on CNBC, Bloomberg, Bloomberg Radio, Fox News, Fox Business News, and other major media outlets.

Before Money Strong, Danielle spent nine years at the Federal Reserve Bank of Dallas where she served as Advisor to President Richard W. Fisher until his retirement in March 2015. She continues to research, write and speak on the financial markets, focusing recently on the ramifications of credit issuance and how it has driven global fixed income, equity and real estate market valuations. Sounding an early warning about the housing bubble in the 2000s, DiMartino Booth has earned a reputation for making bold predictions based on meticulous research and her unique perspective honed from years of experience in central banking and on Wall Street. DiMartino Booth began her career in New York at Credit Suisse and Donaldson, Lufkin & Jenrette where she worked in the fixed income, public equity and private equity markets. DiMartino Booth earned her BBA as a College of Business Scholar at the University of Texas at San Antonio. She holds an MBA in Finance and International Business from the University of Texas at Austin and an MS in Journalism from Columbia University.

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