This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Technical Outlook: Golden Inflation Hedge

Every market commentator seemed focused Friday on the sharp rise in oil, and in turn seemed to ask every on-air interviewee for an opinion on the rally. This is the type of distraction I continue to warn readers about. Yes, it is important news that oil has moved up sharply today, but investors need to understand the rippling effect these types of situations produce in the market.

Paying attention to how high oil and gas prices climb is not going to help you add profits to your portfolio. Deciphering the steps you need to take to protect your portfolio and profit against continuing signs of higher inflation and a poor fiscal policy are what investors need to focus on.

The Federal Reserve has been barking lately that it's beginning to worry about inflation and the dollar's going to rise and gold is going to fall. That may happen in the short term, but the long-term dynamics will not be affected.

My question is if the Fed were seriously worried about inflation then it would be taking immediate steps to raise interest rates, not lower them and let the central bank flood the market with loose money. Of course, we all know that the Fed's not going to start raising interest rates because it knows the housing market cannot handle it, and the Fed certainly does not want to add to the current banking crisis.

Worldwide inflation is close to 10%, and many leading minds believe that U.S. inflation is close to 8%, not the manipulated numbers with which the government tries to fool the public.

One of the ways to profit from higher inflation is to invest in gold or gold companies because that area of the market becomes a safe haven for investors as inflation heats up or financial fears in the market increase.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CEF $10.03 0.00%
GLD $101.25 0.00%
GGN $5.05 0.00%
PBR $4.93 0.00%
AAPL $117.81 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs