Smart Investing Newsletter

With all the excitement surrounding the run up in gold this year it seems to be an easy target. However, as investors pour money into precious metals, such as gold, people have to remember that President Trump has pledged to stimulate the economy through tax cuts.

With the S&P 500 currently paying a dividend of only 1.1%, which is the lowest in about 25 years, people may wonder if they should even care about dividends.

The simple answer is yes, but it also is one of many indicators we are seeing. Cardboard is used in many items in the economy from pizza boxes to the multiple items you get delivered from online stores.

A psychologist by the name of Gerald Wilde came up with the term homeostatic years ago and I believe this is totally relevant in today's market. It essentially means that when the environment comes to feel safer, people’s behavior becomes riskier.

Although the labor market has been softening and consumers say they are worried about inflation, people are still spending money. August retail sales were up 5% compared to last year and if the annual decline of 0.7% in gasoline stations was excluded, sales would have increased 5.5% compared to last August.