Posts On Economic and Geopolitical News

January 9, 2017 |

Could Stocks Top on January 20th?

inauguration

It’s no secret that stocks have been on a ferocious run to the upside since the Presidential election victory by Donald Trump. The notion of looser regulation, tax cuts and massive fiscal stimulus has sent stocks sharply higher, especially banks’. Could the rally over the last several weeks prove to be a case of buy the rumor sell the fact? Some analysts appear to think so… In a recent article from Marketwatch.com, analysts from Morgan Stanley voiced some concerns that the rally in equities has... Continue Reading

Category |

January 5, 2017 |

Better Times Ahead For Gold?

to remain

In spite of the declines seen in recent weeks following Donald Trump’s Presidential election victory, gold and silver still managed to put together a solid year of gains. Although these key precious metals remain vulnerable to further selling pressure, long-term buyers and bargain hunters may step in at or around current price levels, helping the metals find what may be a long-term bottom. Numerous issues have been cited for gold’s recent weakness, including stronger stocks, rising interest rates, a higher dollar index and economic optimism.... Continue Reading

Category |

January 2, 2017 |

Will The Fed Deliver in 2017?

Economic Indicators

The Fed finally raised interest rates this past month for the first time in a year. Although this rate hike did not come as any surprise to global markets, what did perhaps catch markets slightly off-guard was changes made to the central bank’s dot-plot for 2017. The central bank is now forecasting three interest rate hikes in 2017 rather than just two. With Donald Trump taking office next month, things appear to be a lot more hawkish now than they did just a few short... Continue Reading

Category |

December 29, 2016 |

Are Investors Putting the Cart Before the Horse?

House of Cards

The year is quickly winding down, and gold may end 2016 on a bit of a sour note. The recent decline in gold prices, with a strong rise in stocks, interest rates and the dollar goes to show just how quickly things can and do change in modern financial markets. Although gold could potentially remain on the defensive for the next several weeks or even months, we believe it is important to keep the recent sell off in perspective. Equity markets have been moving sharply... Continue Reading

Category |

December 27, 2016 |

Gold Will Shine Again

As the year winds down, and as trading volumes decline, many key markets are likely right at or near levels where they will finish out 2016. Although stocks have had a great several weeks, other asset classes, such as gold and silver, have not performed as well. Although risk assets have been moving higher on the notion of increased spending and tax cuts, much remains to be seen that could determine how markets might perform in the New Year. We believe that gold and silver... Continue Reading

Category |

December 23, 2016 |

There’s Still the Debt…

rapid inflation

The rally in stocks and the dollar seen over the last six weeks since the U.S. Presidential election has been the center of financial media focus. Given the amount of ground these markets have covered in a relatively short period of time, you might be asking yourself just how much more room stocks and the greenback have to run to the upside. Although no one can say for sure, the answer is probably a lot. The rally may very well continue into the first several... Continue Reading

Category |

December 21, 2016 |

Don’t Get Distracted by all of the Noise

Ignore

Last week marked the first time the Federal Reserve has raised interest rates in a year, and only the second time it has done so in a decade. Although the Fed did not surprise markets at all implementing a rate hike of 25bps, the central bank did appear to sound considerably more hawkish than markets had expected. Given the fact that a quarter point rate hike by the Fed was pretty much a foregone conclusion, investors turned their attention to the central bank’s plans for... Continue Reading

Category |

December 19, 2016 |

Has the Towel Been Thrown In?

Federal Reserve

The Federal Reserve finally took action on Wednesday, raising the Fed Funds rate by 25 basis points. This move by the central bank did not take markets by surprise, quite the contrary, it had been expected for some time now. What did come as a minor surprise, however, was the Fed adding a third interest rate hike to their dot-plot for 2017. This possibility of an additional interest rate hike next year drove some selling in multiple markets, including not only gold and silver but... Continue Reading

Category |

December 15, 2016 |

Keeping Powder Dry for Times like This

Gold Coin Plant

A recent article on CNBC.com was titled:  “Gold suffering second-worst quarter in 18 years, as all goes awry for the metal.” The article goes on to state that “Gold has slumped nearly 12 percent in the fourth quarter, suffering its second-worst quarter in 18 years as a host of catalysts pummel the yellow metal.” Sounds bullish to us… Let’s also not forget that as of right now, gold is still up for the year. Gold has not been able to get much going to the... Continue Reading

Category |

December 9, 2016 |

A Game-Changer for Gold?

Islamic Mosque

On Monday, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) along with the World Gold Council announced a new gold standard that makes investments in gold compliant with Sharia law. Although gold has been compliant in certain forms in the past, the subject seemed for many to fall into a gray area, and the new gold standard is designed to clarify the guidelines regarding gold investments. A recent statement by the WGC and the AAOIFI said: “Until now, there have been no such... Continue Reading

Category |