Drew
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The Fed and Precious Metals - How Should You Alter Your Investments?

As the Fed continues their policy of low interest rates and quantitative easing, does that make metals like gold and silver a no brainer? Well, it’s not that simple.

For one thing, nothing is a no brainer. You could have invested all your money in pets.com in 1999 and then gone out and bought a Ferrari (NYSE: RACE,) thinking that was a no brainer. Then all your money and about 300 million other investor dollars would have been gone overnight. I guess having a sweet sock puppet as your mascot doesn't make up for your company having bad fundamentals.

Still, it seems like the Fed actions that were supposed to help the economy take off could actually be having the opposite effect, which has been a boon for metals especially. It seems like the Fed’s style of being wishy-washy and unconvincing about the health of the economy will only continue. I can’t imagine Janet Yellen doing anything to inspire confidence in the near future. I think instead of releasing a Beige Book, they should just send out an emoji of someone shrugging.

The more the Fed equivocates, the more it seems like metals, especially gold (GLD) are a good idea as an insurance policy against all the uncertainty.