Posts On Economic and Geopolitical News

November 3, 2016 |

World renowned investment manager discusses gold’s place within a portfolio

Gold Egg

In a recent interview with the World Gold Council, Allianz chief economic advisor Mohamed El-Erian discussed the potential role gold may lay within a portfolio. He stated “As part of a diversified portfolio allocation that includes a higher-than-usual cash allocation, gold can play an important role in overall risk mitigation. It can also provide a notable upside should the enormous amount of central bank liquidity injection gain traction and result in higher inflation, be it actual or expected.” El-Erian went on to state “A growing... Continue Reading

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November 1, 2016 |

What if Central Banks Run out of Ammo?

helicopter

The average person has likely become all-too familiar with various terms used to describe the state of many monetary policies around the globe. Phrases like low interest rates, zero interest rates, negative interest rates, bond purchases and yield curve have become quite familiar in recent years as global central banks took steps to battle deflationary forces and a potential economic collapse. Whether or not these policy tools have really been effective remains the subject of debate. Although the U.S. has ended its QE program, many... Continue Reading

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October 28, 2016 |

Could Crude Oil Be The Next Major Bullish Catalyst For Gold?

Oil pipes

The decline in crude oil prices this past year was the subject of many financial media headlines and stories. After trading as low as the mid-thirties per barrel last winter, the oil market has come back, but not without some ups and downs. With several of the world’s largest oil producers possibly getting ready to implement a production freeze or even a production cut, black gold could potentially see further upside from current levels. In fact, the oil market could potentially rise substantially from current... Continue Reading

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October 26, 2016 |

No End in Sight for QE

Life Preserver Cash

With or without a December interest rate hike from the Federal Reserve, global easing measures thus far show no signs of slowing. The European Central Bank, the Bank of Japan and the Bank of England could all potentially engage in further quantitative easing measures in an attempt to boost economic activity and spur inflation. Concerns appeared to be on the rise recently about the possibility of the ECB stepping back from its QE, although ECB President Mario Draghi put such concerns to bed this past... Continue Reading

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October 20, 2016 |

Buy Gold Now Before the Next Recession Hits

stock-market-crash-crisis copy

The term recession can raise the hair on the back of investors’ necks. According to some market observers, the next recession will be seen within the next 18 months or so. In a recent article from Marketwatch.com, Goldman Sachs alum Raoul Pal discussed some of his views on the economy and where investors may want to park some cash. At the heart of the conversation was negative interest rates, and Pal stated “As we get to negative interest rates, gold is a good place to... Continue Reading

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October 14, 2016 |

Where Are The Bulls?

bullish catalyst

Gold and silver came under some serious selling pressure last week and thus far have not mounted a comeback. In our view, this is not a bad thing as it provides investors the opportunity to buy silver at sub-$18 per ounce levels. In our view, gold also represents an excellent long-term value at current levels for the patient investor. For those who might be questioning what could be the next big catalyst for gold, especially since interest rates are set to rise before the end... Continue Reading

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October 12, 2016 |

A Bird in the Hand is Worth Two in the Bush

Bubble Pop

Stocks remain not far from recent all-time highs, and you have to wonder if equity investors will keep pushing stock prices further into bubble (we mean new all-time highs) territory. The desire for yield can be a powerful thing, and that thirst for returns has driven equities higher for several years now. In reality, however, it is zero or negative interest rates and a lot of quantitative easing that has driven equity markets to current levels. Investors have essentially been forced to go out and... Continue Reading

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October 6, 2016 |

Is the Next Major Bailout Right Around the Corner?

Life Preserver Euro

It’s no secret that Deutsche Bank has been under pressure. Among other issues, negative interest rates have cut into the bank’s profits. In fact, Deutsche Bank shares have lost nearly 60 percent this year, and worst may be yet to come for the embattled investment bank. Deutsche Bank finds itself in a highly leveraged position, and concerns over the health of the bank are becoming more and more apparent. Last week, news surfaced that some of the bank’s hedge fund clients were trimming their sails... Continue Reading

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September 30, 2016 |

Buckle Your Seatbelts

Central Banks Are Still

Equity markets remain not far from recent all-time highs, and there seems to be an eerie sense of calm in the marketplace. The CBOE’s VIX index, commonly referred to as the “fear gauge,” is showing a reading of less than 15 currently in another sign that perhaps investors have become overly complacent. With a Presidential election looming and a whole host of other key economic issues facing the global economy, the current era of complacency could be about to change-and rapidly. Regardless of who wins... Continue Reading

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September 28, 2016 |

Are the Dollar’s Days Numbered?

ticking clock

Tick tock tick tock…October 1st is quickly approaching and this day is bringing with it what could be a pivotal moment in the global economy and trade as we know it today. On the first of October, the International Monetary Fund will officially add the Chinese Renminbi to its Special Drawing Rights or SDR basket of currencies. With this move by the IMF, the Chinese currency will take its place among the elite currencies of the world including the euro, yen, pound and dollar. This... Continue Reading

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