Why To Invest in Gold

A Powerful Reasons:

Janet Louise Yellen (born August 13, 1946) has caused concern in the investing world in her first press conference. The Federal Reserve said that they intend to keep short-term interest rates near zero into next year, but investors got signs that these rates might come sooner and at a very aggressive pace. The Federal Reserve attempted to minimize concern as Ms. J. Yellen played down rate-increase expectations, but they clearly failed as stock prices plummeted.

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Ms. J. Yellen suggested that interest-rate increases might come about six months after the bond-buying program is terminated. Even with such suggestions investors still took it as a sign that the Fed would more than likely start to raise rates sooner than expected. Ms. J. Yellen was not exactly convincing in her press conference and investors felt that. This could be for two reasons. The first reason is that this is her first press conference and she is new to the game and the second could be that it being her first conference investors are not too certain about her yet. Whatever the case maybe, the end result is that the markets were rattled.

Investors in stocks are currently terrified, while those in gold have nothing to worry about, as it is a long-term asset. This is the perfect example of why one should steer clear of heavily investing into stocks. One word slip from the nervoushead of the Fed and stocks come crashing. The short-term interest rates were not

the only items discussed at the conference. The Fed took the step to pull bond buying back to $55 billion a month from $65.

The Feds decided to take short-term interest rates away from its 6.5% Unemployment threshold indicator and replace it with qualitative guidance. The Feds will move rates depending on a set of economic indicators. Ms. Yellen suggested that she was looking at 10 different economic indicators such as, job market conditions, inflation and financial development. For her first conference, Ms J. Yellen certainly let the public down. At this point we can’t be too sure when the Feds will move interest rates.