Posts On Market Update

October 1, 2015 |

The Possible Effects of a Weaker Dollar

3 reasons

The mighty dollar is not as mighty as it once was. Going back to the mid-1980s, the dollar index has lost about half of its value. HALF… Not only does the chart of the dollar index over the past three decades paint a bearish picture for the currency, but recent moves by other nations to move away from the greenback are also adding to bearish sentiment. While the dollar has enjoyed a long run as king of currencies and the reserve currency of choice; that... Continue Reading

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August 28, 2015 |

Is It All About the Fed Now?

all-about-the-fed

After a crazy week of trading in global equity markets, things seem to have calmed down significantly-at least for now. Of course, if Chinese stocks fall several percent Sunday night, then U.S. markets could potentially be in for another difficult Monday. Aside from recent equity market volatility, markets may once again focus on interest rate expectations. The next FOMC meeting is now less than three weeks away. While the Fed had previously indicated that any changes in rates would likely be a game-time decision, expectations... Continue Reading

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August 27, 2015 |

Market Volatility and the Real Culprit

market-volatility-and-the-real-culprit

Markets have been on a roller coaster ride in recent days. Following a massive sell-off in Chinese equities on Monday, U.S. markets opened the week to what can only be described as financial bloodshed. The Dow Jones, for example, saw its biggest single day decline ever and was down nearly 1100 points at one point in the session. Much of the financial media has been focused on economic weakness in China and the volatility that has been seen in Chinese equities. And rightly so. As... Continue Reading

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August 22, 2015 |

Ouch

ouch

The U.S. stock market witnessed massive selling for the second day in a row as investors continue to run for the exit signs in droves. The broad market SP 500 index saw losses today to the tune of over 3 % and closed 64 points lower, while the Dow Jones Industrial Average was hammered for a loss of over 530 points. Concerns over a global economic slowdown and plunging emerging market currencies have been cited by some media outlets as the cause of the selling,... Continue Reading

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June 1, 2015 |

Monetary Policy Matters Not

monetarypolicy

  A lot has been discussed in recent months concerning the Fed and its potential plans to begin hiking interest rates. One week the Fed is seemingly on hold, the next week the central bank is getting ready to hike. During this see-saw discussion of the beginning of the tightening cycle, the Fed has consistently stated that any decision with regards to interest rates would be “data dependent.” The equity markets are now in an absurd state of uncertainty. A bad piece of economic data... Continue Reading

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May 15, 2015 |

IS GOLD ON THE VERGE OF A BREAKOUT?

gold_breakout2

As we have stated regularly for some time now, the global financial landscape appears to be headed for some significant changes. These changes may affect how investors look at various financial markets and may be the catalyst for a large shift in both investor allocation and sentiment. What are some of the issues we are referring to? There are several noteworthy issues in play right now that may significantly impact financial markets. Here we will briefly outline just a few, and discuss why these issues... Continue Reading

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May 12, 2015 |

Are Stocks Ready to Tumble?

Stocks Tumble

Stocks are under some pressure recently as the risk of a Greek default and the notion of higher interest rates take their toll on investor sentiment. The question is: Is recent weakness seen in equities simply another pullback or is it indicative of more volatility and lower prices to come? Like anything else in life, different investors will have different opinions on this. We do believe, however, that the stock bears do have a case. Stocks are now in the seventh year of the rally... Continue Reading

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May 8, 2015 |

Mixed Signals

Following  this morning’s release of non-farm payrolls data for April, one could certainly characterize the reaction among various markets as being “mixed.” According to the U.S. Department of Labor, the country added 223,000 jobs last month while the unemployment rate ticked lower to 5.4 percent-the lowest level in seven years. The less talked about “participation rate”, which indicates the percentage of working-age people who are employed or actively looking for work, came in at 62.8%- matching the lowest since 1978. Stocks cheered the headline number,... Continue Reading

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October 21, 2014 |

Wall Street’s 2014 Profits wiped out in one week

Wall Street Sign

In a word…PAIN Wall Street has been rocked this week as it endured its 5th straight losing session.  In the last five days, the DOW has lost over 850 points.  Since their high’s in mid-September, the markets on Wall Street have seen an average loss of 9% and over $1.5 Trillion of value was wiped away. The Dow opened badly on Wednesday, and then things got worse as it plummeted 460 points in early morning trading before reclaiming some of the early losses and ended... Continue Reading

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