The Fed has halted QT, so the balance sheet will stay at $3.8 trillion. This is bullish stocks and gold.
"The Fed also said it was ending the program to shrink its balance
sheet, known as quantitative tightening, on Aug. 1" This is 2 months
earlier than the end of September.
This was also the reason why everyone was buying bonds on that day.
Bullionstar reported that the Central Bank Gold Agreement will end in September 2019.
I cannot stress enough how important this is. Here is the press release from the ECB. European countries will now be able to buy gold again.
Western central banks have not been buying gold since 1966. Since the crisis in 2008 started, the eastern central banks have been buying gold but the western central bank purchases were capped. You can see in this chart how eagerly these western central banks are to start buying gold. Finally, in September 2019, they will be able to buy gold again, especially when gold is now a Tier 1 monetary asset (Basel III). They will scramble to buy it.
I expect gold prices to move up after September 2019, especially when the ECB and the FED are resorting to QE again after September 2019.
If I don't have any ideas anymore what to buy, I use the stock screener.
Almaden Minerals is a speculative play on higher gold and silver prices.
What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change.
1)
Market Cap: do not choose small companies as they are mostly fraudulent
or don't have sustainable earnings. Don't choose big companies because
these are not volatile enough to get fast profits from. I'd filter
between 200 million and 4 billion.
2) P/E ratio: choose
the companies with the lowest P/E ratio, these companies are dirt cheap
while still having earnings. Cheap is below P/E of 5. But do not choose
below P/E of 2 because those are mostly companies that are going
bankrupt or have bad growth.
3) Dividend yield: always
choose companies that have dividends, because these companies have real
earnings and can prove they have sustainable earnings to reward
investors. The higher the better of course, but don't push it above 7%
as those companies probably don't have the money to pay out dividends on
a regular basis. I'd go for companies with dividends between 3% and 7%.
4) Volatility: don't choose companies that are so volatile. Maximum year over year change should be between the 20% range.
