Jim welcomes Gary Dorsch, Editor of Global Money Trends. Gary and Jim discuss a wide variety of topics today. Gary sees a high correlation between high yield junk bonds and the crude oil market. He also believes that the continued low price of oil is a major threat to the banking sector, as some of the hundreds of billions in energy loans are at risk of default. Gary also believes the major stock indexes could rally from here, but it will likely be short lived. The recent bounce in the markets may be related to signals from the Fed that it won’t raise rates in March. As to gold, Gary believes the 4 ½ year bear market cycle is over. He cites a number of fundamental factors that have been catalysts in gold’s recent resurgence. Gary also touches on negative interest rates on a global basis, and states that negative rates are a major policy mistake by central bankers. Also in this segment, Ryan Puplava has this week’s Market Wrap-Up, and Marc Chandler covers the global currency markets with Jim.
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