Gold $ 1,000 per ounce

What does the rising trend in gold pricing mean to the community banking sector. In a word ( or two) gold’s rise indicates the expectations of lower interest rates and a lower dollar in the international exchange world. Lower interest rates portend a more challenging profit picture for banks. The spread between what a bank pays for its money and the rate it can charge for lending could narrow hurting gross profit margins. We’ve seen these cycles before and the efficient operators are likely to adjust to the environment and remain profitable. As investors we need to remain diligent in reviewing earnings reports and stay the course of Value Investing.

Data Confirming Long Recovery Required

Recent economic data is confirming the opinion offered here some time ago that we are in for a long and gradual recovery from the financial collapse of last year. Unemployment is still on the rise and productivity numbers are static. My opinion is that we will be in for a choppy stock market over the coming quarters and that it will be a market of stocks. Individual stock selection will be the key. Do your fundamental homework!