Posts On Economic and Geopolitical News

January 21, 2019 |

Could Another Round of QE be in the Cards?

House of Cards

Markets have been wrestling with numerous issues in recent months. The ongoing war on trade, rising interest rates, Brexit, the continuing government shutdown and other geopolitical concerns to name a few. During that time, stock markets have come under pressure and recently flirted with bear market territory. A sharp rise in volatility didn’t help matters either, and investors have been left wondering if a market top has been reached. Much has been made of the mixed messages from the Fed. Not long ago, Fed chief... Continue Reading

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January 18, 2019 |

Fed Chief Jerome Powell Acknowledges Debt Problem

Next Recession

The U.S. is running massive deficits as the nation’s indebtedness continues to grow. Speaking at the Economic Club of Washington D.D., Fed Chairman Jerome Powell recently acknowledged the issue. In a piece by cnbc.com, Powell was quoted as saying “I’m very worried about it. From the Fed’s standpoint, we’re really looking at a business cycle length: that’s our frame of reference. The long-run fiscal, nonsustainability of the U.S. federal government isn’t really something that plays into the medium term that is relevant for our policy... Continue Reading

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January 15, 2019 |

What Can the Fed Do?

Federal Reserve

The Federal Reserve has been the topic of considerable debate in recent months. The central bank has continued its course towards policy normalization over the last couple years but has recently run into a brick wall. The Fed has hiked several times over the last year, drawing the ire of numerous analysts and even the President of the United States. The central bank recently followed through on its plan for another 25-bps rate hike in December. The recent release of the latest FOMC meeting minutes,... Continue Reading

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January 14, 2019 |

The Message is Clear

Yesterday was a busy day for the Fed. Several central bank officials gave speeches throughout the day that were then followed by the release of the latest FOMC meeting minutes in the afternoon. Some of the speeches appeared to provide differing opinions on the economy and how the central bank should proceed. Chicago Fed President Charles Evans alluded to the Fed’s previous plans for another three rate hikes in 2019. Atlanta Fed President Raphael Bostic provided his take on the central bank’s plans going forward,... Continue Reading

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January 10, 2019 |

Risk is to the Upside

highs near

When it comes to managing investments, risk management is everything. Knowing the potential risk on any position is imperative to success. Risk is not always to the downside, however, and oftentimes markets will exhibit behavior that warrants upside risk. The gold market may currently be displaying such upside risk. After spending much of 2018 probing the recent lows, the selling pressure eventually began to run dry. Try and try as they might, the bears were simply unable to push prices to significant new lows. In... Continue Reading

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January 7, 2019 |

Uh Oh

Recent revelations from Apple showed that sales of its iPhone products were way slower in China than many had anticipated. The poor sales data along with reduced guidance from the company sent its stock down by nearly 10% on Thursday as the Dow Jones Industrial Average shed over 600 points. Bad news from Apple was not the only issue weighing down the markets, either. A recent string of manufacturing data has clearly shown a slowdown in activity. After the Apple announcement on Thursday, the latest... Continue Reading

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January 4, 2019 |

2019 to Pick up Where 2018 Left-off

George Washington

On the first trading day of the New Year, stocks are set to once again tumble at the open. Premarket trading points to around a 400-point decline for the Dow Jones Industrial Average right out of the gate while the tech-heavy Nasdaq is set to drop over 140 points. An ugly start to the new trading year to say the least. The selling is being fueled by many of the same factors that has fueled selling in recent weeks: The potential for a global economic... Continue Reading

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January 2, 2019 |

Get Ready for Some Serious Bumps

busy week

The markets are ending the year on what can only be called a sour note. Stocks are either in or on the verge of entering bear market territory and the potential downside could be just getting started. Measures of market volatility are also highly elevated and could potentially be indicative of further selling pressure in the months ahead. The potential risks facing the economy and global stock markets are immense. The ongoing war over trade, the potential fallout from a hard “Brexit,” higher interest rates... Continue Reading

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December 31, 2018 |

Make a Plan

forget price

As the year comes to a close, there is no better time to begin thinking about and planning for next year. Significant changes in the global economy and market dynamics necessitate that investors take an objective look at their portfolios to determine how to try to stay a step ahead. Given the current economic and geopolitical backdrop, there as perhaps never been a more important time to have a significant allocation in hard, physical assets like gold. If you are thinking about making some changes... Continue Reading

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December 27, 2018 |

The Breakout Has Begun

without a deal

The stock market has seen a major volatility expansion in recent weeks as declines have mounted. The equity markets are currently grappling with numerous issues that could not only set the stage for the next bear market but could also send stocks decidedly lower in a short period of time. Some of the major catalysts for recent stock selling include the ongoing trade war with China, rising interest rates, geopolitical risks and a partial government shutdown. Investors may now be wondering, however, if they must... Continue Reading

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