Posts On Economic and Geopolitical News

October 18, 2018 |

Strength Despite Strength

all-time

The gold market has been showing some important signs of strength in recent action. The market has moved sharply higher in a short period of time, and is hovering around a 10 week high. Overall sentiment around the gold market seems to be improving and the market is also now on more sound technical footing. Of particular note today is the fact that gold is higher again despite stocks being sharply higher as well. Stocks are not just slightly higher, either. As of this post,... Continue Reading

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October 16, 2018 |

Time to Buckle Up

Seatbelt

The past week has seen an enormous increase in stock market volatility. In just two sessions, the Dow Jones Industrial Average shed nearly 1400 points, and the NASDAQ officially entered correction territory on Thursday. The sharp and rapid rise in interest rates has been pinned as the primary culprit for the sell-off, and things could be just getting started. Although stocks are sharply higher in early trade on Friday, the rally being seen could simply be more of a relief rally than anything else. The... Continue Reading

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October 12, 2018 |

Is A Tipping Point At Hand?

In early action on Wednesday, the stock market is getting hit once again, and hit hard. Rising bond yields remain the object of blame for today’s sell-off, and the market is showing some significant signs of cracking. The selling seen last week and thus far today could simply prove to be a small taste of the potential carnage ahead. Higher yields are creating competition for stocks, which have enjoyed a significant, decade-long run due in no small part to a lack of viable alternatives. Given... Continue Reading

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October 10, 2018 |

Not So Fast…

US Yield Curve

The sharp rise in bond yields has been the topic of much discussion over the last week, and yields have a lot of room to run even higher. The movement in the bond market has not gone unnoticed by equity investors, and stocks saw some significant selling last week as a result. To be clear, it is not necessarily the rise in yields that has investors upset. Rather than focusing on a specific level in rates, investors are likely far more concerned with the speed... Continue Reading

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October 8, 2018 |

A Shot Across the Bow

Seatbelt

Stocks are getting hit today, and hard, as rising bond yields fuel selling in equities. The recent concerns over higher yields-which are trading at multiyear highs-is only one issue that stock investors will need to contend with in the months and years ahead. None of this is to say that stocks cannot keep going higher, in fact, stocks may very well see a fresh leg higher and new all-time highs going into the end of the year. Once the levee breaks, however, look out below.... Continue Reading

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October 4, 2018 |

Get Ready

just the beginning

The gold market is showing some significant strength today as the metal has once again moved back over the psychologically important $1200 level. It’s no secret that the dollar index has weighed heavily on gold in recent months, but there seems to be increasing concerns that the greenback is not likely to maintain its recent strength. With the recent Fed rate hike having come and gone, and with expectations of another hike before the end of the year already factored into prices, the gold market... Continue Reading

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September 26, 2018 |

Buy the Rumor Sell the Fact?

Federal Reserve

This week, the scheduled Federal Reserve policy meeting is likely to dominate much of the financial headlines. The Fed will be meeting Tuesday and Wednesday, and is expected to hike interest rates again by another 25 bps. Investors will likely be far more focused on the central bank’s plans going forward, however. Right now, the Fed has another 25 bps hike penciled in for November. Although traders are widely expecting action again before the end of the year, there is also a possibility that the... Continue Reading

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September 24, 2018 |

A Win-Win Situation

sign of strength

The recent surge higher in both stocks and economic growth may very well be unsustainable. In fact, it seems that an increasing number of analysts and prominent investors are now sounding the alarm bells about what could be seen economically next year or the year after. This could potentially put gold into a win-win scenario. Here’s why: Slowing Growth and/or Recession: The economy is, without question, humming along at what is arguably an excellent pace. Jobless claims are the lowest in nearly half a century,... Continue Reading

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September 20, 2018 |

Two Major Factors

The gold market remains relatively quiet in recent action as the metal tries to hold support around the $1200 level. The bulls have not had much to cheer about in recent weeks, as higher stocks and a stronger dollar have taken a toll on sentiment. When it comes to financial markets, however, things can and do change in a hurry. That said, there are two potential events on the horizon that have the potential to drastically change the outlook for not only gold but other... Continue Reading

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September 18, 2018 |

Liquidity Could Be an Issue

It seems that with each passing day, more and more analysts are jumping on the bear bandwagon. There have already been numerous calls from well-respected firms highlighting the risks that the economy and stock market are facing, and some have even suggested that the next major downturn could be far more significant and longer than the last. There are numerous potential issues that could drive the next major downturn: Higher interest rates, weakening stimulus effects, geopolitics and higher inflation to name a few. Regardless of... Continue Reading

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