Weekly Market Update by Retirement Lifestyle Advocates

Wide Rebound in Markets on Much Weaker US Dollar

         Markets rallied across the board on US Dollar weakness last week.  The US Dollar Index, which measures the purchasing power of the US Dollar in comparison to the major trading partners of the United States, fell by more than 3%.  That’s a big decline as far as currencies are concerned.

         After a dismal week the week before last, stocks rebounded nicely, although volatility in stock markets remained high.  The Dow Jones Industrial Average rallied nearly 5% on the week, while the Standard and Poor’s 500 advanced almost 6%.

         Gold rallied 6.61% to new all-time highs, and silver advanced nearly 9% on the week.

         US Treasuries were the outlier, declining on the week with the US Dollar weakness.  The yield on the 30-year US Treasury rose from 4.42% to 4.87% as bond prices fell.

         Although markets never go straight up or straight down, given the high level of volatility in stocks, more downside here would not be surprising.

Home Ownership Now Significantly More Expensive Than Renting

         An article in “The Epoch Times” (Source:  https://www.theepochtimes.com/real-estate/us-homeowners-must-earn-50000-more-than-renters-to-cover-mortgage-payments-report-5840717) reporting on a Redfin study noted how much more it costs to own your home as compared to renting.

         Redfin, a real estate brokerage, did a study that found the average homeowner needs to earn $50,000 annually more than a renter.

         “Americans need to earn $116,633 per year to afford the median-priced home for sale, 81.8 percent more than the $64,160 needed to afford the typical apartment for rent,” Redfin said in an April 10 media release.

         In calendar year 2024, a prospective homebuyer looking to buy an average home needed to have annual earnings of $116,633, assuming a 30-year mortgage at 6% interest on an average home and no more than 30% of income expended for housing costs.

         The annual income needed to afford the typical rental in 2024 was $54,520.

         The $116,633 in annual income needed to afford an average home in 2024 is up from $63,925 in annual income needed in 2021.  That’s a huge increase of 82% in just three years, providing further evidence that persistent inflation has squeezed the middle class.

Trump Backs Permanent Daylight Savings Time

         In a recent “Truth Social” post, President Trump encouraged the House and the Senate to make Daylight Savings Time permanent. 

Trump posted, “The House and Senate should push hard for more daylight at the end of a day.”  He then added that the time change is “a big inconvenience and, for our government, A VERY COSTLY EVENT!!!

Trump’s post was on April 11, just one day after a bi-partisan Senate committee held a hearing on making Daylight Savings Time permanent.  The hearing featured testimony from both private sector experts and public sector experts.  All who testified were in favor of eliminating the twice yearly clock change.

Postal Rates Set to Increase

         The US Postal Service is looking to raise the price of a ‘forever’ stamp to 78 cents as part of a rate increase proposal.  (Source:  https://www.cbsnews.com/news/usps-prices-forever-stamp-increase-2025/)

         If approved, the additional cost to mail a letter would be effective this summer.  Presently, the cost of a first-class stamp is 73 cents.

         The postal service has been racking up huge losses for years.  Last year, for fiscal year 2024, the post office posted a loss of $9.5 billion, up from $6.5 billion in fiscal year 2023.  (Source:  https://about.usps.com/newsroom/national-releases/2024/1114-usps-reports-fiscal-year-2024-results.htm)

         Louis DeJoy, former U.S. Postmaster who resigned in March, previously warned postal customers to get used to uncomfortable rate hikes.  

Gold-Silver Ratio Spikes to 100

         As I noted a few weeks ago, whenever the gold-silver ratio has spiked to 90 or more, at least historically speaking, it’s been a silver buy signal.

         Presently, as seen from this chart, the gold-silver ratio has spiked to 100, which is rare.   

         As I have stated previously, I remain bullish on precious metals and am of the opinion that silver will likely outperform gold moving ahead.

Budget Deficit Hits $1.3 Trillion for the First Six Months of the Year
         The latest data from the US Treasury released last Thursday tells us that the operating deficit of the US Government for the first six months of the year totaled $1.3 trillion.  That’s about $140 billion more than the same timeframe last year.  It is also the second-largest six-month deficit on record.

RLA Radio

         This week’s RLA radio program features an interview that I did with John Rubino, author and the publisher of a popular financial and economic newsletter.

         John and I talk about where gold and silver go from here and the future of cryptocurrencies.

         The interview is posted and available now by clicking on the "Podcast" tab at the top of this page.

Quote of the Week

“Although golf was originally restricted to wealthy overweight protestants, today it is open to anybody who owns hideous clothing.”

                                                      -Dave Berry