Over the past week, all the major players in the markets have moved due to the latest round of money printing. Gold has surged to a recent high of over $1,400 per oz. as investors have flocked to the safe haven that gold provides during periods of uncertainty or expected inflation. Oil has also seen a spike as of late since oil is traded on the international markets using US dollars. As the dollar loses value, it takes increasingly more dollars to purchase a barrel of oil, thus oil will continue to trend upwards as long as the dollar experiences continued weakness. The actual stock markets have also seen a relative surge mostly due to the lower values of the dollar. Many firms that have huge markets for their products overseas will see a benefit with a weak dollar. Their products will be cheaper to sell in foreign markets and thus should drive up revenue and profits. While this may seem like a good way of boosting the economy, a dollar that is valued to low will not only cause many commodities to become even more expensive but it could also trigger a new trade war as other countries also devalue their own currencies to remain competitive on the international market. The Fed took a gamble with its latest moves and it will be at least 6 months before we can say with any certainty if it paid off or if we just shot ourselves in the foot with a devalued dollar and ever increasing commodity prices.
Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications)
For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/
Certified IAPDA Debt Arbitrator
Preferred Financial Services
# # #
Preferred Financial Services is the leading voice in the debt settlement industry. PFS has worked with hundreds of creditors to help negotiate realistic goals for those drowning credit card debt.