This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Case For Gold Right Now

In February of 2013, the Dow Jones Industrial Average went up 1.4%, the Nasdaq increased 5%, and the S&P 500 rose 1.1%.

In evaluating the prospects for the U.S. economy in early 2013, there are several offsetting factors which, in my opinion, make growth potentially subdued. Positive trends which I believe could contribute to a quicker rate of expansion include the continuing improvement in oil and gas production, the slowly mending U.S. housing industry, and an accelerating merger and acquisition environment.

Each of these developments is important because they all have large secondary impacts on other industries, potentially creating a multiplier effect across a broad range of segments in the economy.

On the opposite side of the spectrum, the expiration of the Bush payroll tax cuts, the reduction of spending in government related defense and health care programs due to sequestration, and the upcoming implementation of the Affordable Care Act (Obamacare), are all forces which could impede economic recovery.

Interestingly, a slowing down in the rate of government spending is probably the first step to trying to control the expense side of the federal government. The current administration has repeatedly stated it favors a “strong dollar policy.” Rhetoric is nice, but running consistent deficits of over $1 trillion dollars per year help create the conditions for a weak currency.

If one couples the 'Quantitative Easing' policies of the Federal Reserve with the large budget deficits, record low treasury yields mean a strong dollar is nowhere to be found. Indeed, Fed Chairman Ben Bernanke testified this week about the benefits of maintaining the current policy for the foreseeable future.

Fortunately for the United States, currency weakness is the prevailing standard across the globe. In fact, fiscal austerity is being questioned because of the harsh economic and political consequences in the U.K, Japan, and across Europe.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs