Rising Interest Rates Could Cause Double Dip In Financials And Housing

Analyst states housing market may be on verge of a double dip as interest rates are beginning to rise. This may effect the financial and banking sector. Investors may turn to precious metals and undervalued natural resources.
By: Gold Stock Trades
Jan. 13, 2013 - PRLog -- According to Jeb Handwerger, Editor Of Gold Stock Trades, the dollar and treasuries are reversing lower and may hit critical new lows. Investors are selling the dollar and U.S. bonds for risk on assets such as commodities and equities. This may cause a spike in interest rates. Higher interest rates, unemployment rate and a declining dollar could especially hurt the overextended housing and financial sector which has had a major boost from government interventions.

Jeb Handwerger recently wrote in a free update to readers, "The long-term bond ETF is breaking below the 200 day moving average. We called the top this summer."  Investor can read that article predicting the top in Treasuries titled, "A Major Turning Point For Gold, Silver and U.S. Treasuries". (http://goldstocktrades.com/blog/2012/08/03/a-major-turning-point-for-gold-silver-and-u-s-treasuries/)
He continued, "We may be in the beginning of a hyper-inflationary rally where interest rates could begin soaring and the dollar could hit new lows. This could cause another decline in the housing market and put pressure on banks. There is plenty of cash on the sidelines who may be seeking alternatives in the form of the undervalued commodities  and miners especially as the dollar is forming a bearish head and shoulders formation and the Canadian Venture is breaking out above the 50 day moving average."

To read the full update to free newsletter readers click below:


Also watch the video update sent out following the fiscal cliff deal highlighting specific etf's which jumped as a result.

Source:Gold Stock Trades
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Tags:Gold, Silver, Mining, Housing, Financial
Industry:Gold mining, Housing
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