Some reasons why owning physical Gold is a prudent choice for a balanced portfolio.

It’s budget time in D.C. – time to stop a government shutdown. But the question is, is everyone on board?

The 2018 White House Budget is out with hopes that after two tries this budget will be approved, but after reading it, it seems there is some opposition on both sides of the aisle.

One must be concerned by OMB Director Mick Mulvaney’s comment. He said, “We are no longer going to measure compassion by the number of programs or the number of people on those programs. We will measure compassion and success by the number of people that get off those programs.”

This statement didn’t sit well with some Democrats.

Reforming entitlement programs has long been a goal for the Republican leadership. The President seems to want to eliminate or reduce welfare benefits, Medicaid, and Food Stamps by requiring people to return to the workplace.

We all expect that next on his agenda will be reducing the cost of Social Security benefits and Medicare costs. On the campaign trail he promised he will not touch Social Security or Medicare and now he must realize with the ever growing population of baby boomers he can’t expect to put together a balanced budget without cuts to these programs

And if that strategy isn’t enough to raise some eyebrows, the CBO said that with the tax cuts the Federal debt will increase from about 75 percent of gross domestic product today to 97.5 percent by the year 2027. The group estimates that the $1.5 trillion tax cut will also mean more than $300 billion in higher interest payments increasing the Federal Debt. So all together, the bill will add $1.8 trillion to the U.S. Debt over the next decade.

I find these numbers so troubling, but as you look at the equity markets and the VIX INDEX no one seems to care. Investors and Washington politicians can’t see the future past the tip of their nose. In the end it will be left up to our children and our grandchildren to pay for our mistakes.

What blows me away is the fact that the corporate tax cut is permanent and the individual minuscule tax cuts are phased out in the years ahead. Talk about filling the pockets of your donors and lobbyists.

Wall Street Complacency

The VIX CBOE index closed at a historic low yesterday meaning there is virtually no risk of any volatility hitting the equity markets in the next 30 days. With so much money on the table for investors, any bad news on the equity front can cause a major sell off as everyone will head for the exits at the same time. And yes this will be a great time for an investment the yellow metal.

Please read tomorrow’s comment: 2017/ 2018 – A year by year market comparison

Have a wonderful Thursday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.