Posts On Market Update

July 12, 2016 |

Gold Poised for More Gains

on the way

  The gold market is showing some significant signs of strength recently that cannot be denied. Price action on Friday was indicative of the significant underlying strength currently being seen in gold ­ and with good reason. Following the Employment Situation report for June, which showed non­farm payrolls adding an additional 287,000 jobs, gold saw some decent selling. That selling, however, was quickly met by willing buyers who happily scooped up gold on the dip. By late afternoon, gold was in positive territory for the... Continue Reading

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July 1, 2016 |

Lower Rates for Longer?

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Heading into the June FOMC meeting, investors were primarily focused on whether or not the Fed would hike rates again. Following the dismal May jobs report, the likelihood of a June hike declined significantly and the central bank did, in fact, remain on hold. The question then became: Would the Fed hike in July or possibly September? Things can change quickly in global financial markets and this past week investors have seen a great example of just how quickly things can head south. The aftermath... Continue Reading

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May 30, 2016 |

A Storm on the Horizon

don't wait any longer

The equity bull market that began in 2008 has been dubbed the most hated bull market in history by some. The run higher in equities over the last several years did, indeed, leave many scratching their heads. While many equity investors have enjoyed some strong returns during this period, there are ominous signs pointing to the possible end of the party. Consider current interest rates and bond yields. Since getting off to a terrible start to 2016, stocks have come roaring back in the last... Continue Reading

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April 20, 2016 |

Gold and the Presidential Cycle

USA Flag

According to the theory of the Presidential election cycle, U.S. stocks experience weakness in the year after the election. The cycle then may revert back to stronger equities until it is time for the next election. What may drive initial weakness in equities followed by a rebound? The answer is reforms, new policies and a degree of uncertainty. Think about it this way: When a newly elected President takes office, he or she may look to deliver on plans discussed on the campaign trail, even... Continue Reading

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April 8, 2016 |

3 Simple Reasons For Dollar Downside

cake and eat

It’s no secret that the dollar and gold often exhibit a negative correlation. Because gold is a dollar denominated commodity, a weaker dollar makes gold relatively less expensive for foreign investors while a stronger dollar makes gold relatively more expensive. It’s also no secret that the dollar has been losing value for years. In our view, loss of value is inevitable when it comes to fiat currency. Unfortunately for users of fiat currency, as their value declines they buy less goods and services. While all... Continue Reading

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February 19, 2016 |

There’s a Whiff of Deflation in the Air…

3 reasons

Much has been made of the ongoing sell-off in the crude oil market. Declining oil prices have been widely discussed in recent months on various financial media platforms and even just this past week, falling oil drove stocks significantly lower. Crude oil fell below the $30 per barrel mark this week for the first time in 12 years as ongoing concerns over the Chinese economy took their toll and as the notion of even more supply hitting the market weighed on prices. Stocks have been... Continue Reading

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February 16, 2016 |

Shedding Some Light on the U.S. Labor Market

Money Stacks

The U.S. labor market is a focal point for markets and investment. On the first Friday of every month, the U.S. Department of Labor reports its latest non-farm payrolls data for the previous month. This report is highly anticipated by investors and certainly has the ability to move markets. Over the past year, as the U.S. Federal Reserve weighed the possibility of raising interest rates-and eventually did-the jobs data was said to play a key role in any decision made by the central bank. This... Continue Reading

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February 11, 2016 |

All Aboard!

Gold Bullion

Gold prices exploded today hitting a 12 month high in the process. Gold soared over $54 per ounce and at the day’s highs was over the $1260 per ounce mark. This highly bullish price action would seem to confirm what we have suspected for some time. The gold train is leaving the station-and fast! Gold prices have staged a very solid looking upside breakout in recent weeks and could potentially be headed sharply higher from current levels. Even though gold has risen by over $100... Continue Reading

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January 8, 2016 |

Selling Stampede

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Stock market volatility has returned and in grand fashion. As of this post, the broad market SP500 is down over 42 points, or 2.12 percent. The markets opened sharply lower this morning following the shortest trading day in Chinese equities in history. Chinese stocks opened last night and dropped significantly right off the bat. For not the first but the second time this week, circuit breakers were triggered to halt trading… In fact, trading lasted for only about 30 minutes before being halted. The slide... Continue Reading

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December 9, 2015 |

What will happen when the Fed finally raises interest rates?

CNN Money Video

On December 16th, it is expected that the Fed will begin raising interest rates. That move, we believe, will have a far greater impact than what may seem logical from a small .25% hike. And simply looking at the size of the rate hike may be misleading. What should be considered instead is the length of time that interest rates were kept at 0%, and the tremendous distortions and imbalances that have been created as a result. Have we become addicted to the medication? Will... Continue Reading

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