Posts On Economic and Geopolitical News

February 6, 2017 |

Has a Bottom Finally Been Reached?

on the way

Gold is powering higher on Thursday as a number of issues are giving the yellow metal a boost. With gold’s recent strong showing, it begs the question of whether or not the metal has finally found a significant bottom. For the time being, it appears (in our opinion) that the answer to that question is a “yes.” Since being hammered in the immediate aftermath of the November Trump Presidential election victory, the gold market has been trending higher, and in fact got off to a... Continue Reading

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February 2, 2017 |

Uncertainty on the Rise

Trump Uncertainty

Stocks got off to a lousy start this week, as investor anxiety over Trump’s immigration ban as well as corporate earnings is on the rise. The recent actions taken by the Trump administration could be just the first of more to come, and could potentially divide the nation further. The Trump administration recently put a ban on immigration from several primarily-Muslim countries and also put a 120 day hold on the U.S. refugee program. The actions drew immediate praise from some, and immediate disgust from... Continue Reading

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January 31, 2017 |

Don’t Focus on the Short-Term

Coins and Watch

Right now may be a great time to buy gold or add to existing holdings. After trading at two-month highs recently, gold has backed off slightly as some profit taking is likely seen and as global stock markets continue their ascent. The recent sideways trade in the dollar has also likely given gold a boost, and it remains unclear if the yellow metal will attempt to challenge the highs seen following the Trump election victory. When it comes to investing, we are of the opinion... Continue Reading

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January 27, 2017 |

The Calm before the Storm?

Calm before Storm

Five days into the Donald Trump Presidency, the Dow is flirting with the 20,000 level, gold is near two month highs and the dollar remains well off of its post-election highs. Although the “Trump” rally has slowed in recent days, it may simply be a case of investors taking a wait-and-see approach. Thus far, Trump has signed orders to proceed with a major oil pipeline and pulled the U.S. out of a Pacific trade group. It has been reported that Trump will sign executive orders... Continue Reading

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January 25, 2017 |

Let the Money Printing Continue

Printing press

Much of the recent talk in the financial media has been centered on Donald Trump taking office and what the new Presidential administration may be able to accomplish. There has been much talk of pro-growth policies, rising inflation and higher interest rates. Although the U.S. is no longer actively engaged in QE, and although the U.S. has begun tightening interest rates, such is not the case in other parts of the world. Ultra-low monetary policies remain in place in several key economies and central banks... Continue Reading

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January 23, 2017 |

Could Dollar Upside Be Limited From Here?

Dollar vs Yuan

It’s no secret that President-elect Donald Trump doesn’t mind voicing his opinion on social media. Various companies such as Boeing and L.L. Bean have already seen what commentary from the soon-to-be-President can do to stock prices. Trump recently did an interview with the Wall Street Journal, however, in which he voiced concerns over the rise of the dollar. The greenback moved sharply higher following Trump’s early November election victory, at one point climbing 4 percent higher at its peak after the election. In the Friday... Continue Reading

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January 19, 2017 |

More Gains Ahead?

found a bottom

The gold market has once again started the New Year off on the right foot. Gold is seeing some solid buying interest to start the year as stocks and the dollar appear to be losing upside momentum. Why might gold be trending higher in spite of stocks being near all-time highs, rising interest rates and a dollar at the highest levels seen in many years? In our view there are numerous reasons that the yellow metal is likely to be bought at current levels. Here... Continue Reading

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January 17, 2017 |

Is The Trump Trade Being Unwound?

Rally

Not to beat a dead horse, but recent price action in key markets begs the question of whether or not the Trump trade has finally run its course. Since Trump’s Presidential election victory in early November, many markets have done the exact opposite of what many analysts were calling for. Stocks have rocketed higher while bonds have been pummeled. The dollar index has also risen sharply in the last several weeks as rates have been on the rise. Optimism over possible tax cuts and a... Continue Reading

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January 13, 2017 |

Are Gold Investors Watching the Right Market?

Bond Market

The stock market is frequently mentioned when gold is discussed in the financial media. This makes perfect sense, given the fact that gold is often bought during times of market duress and may underperform when equity markets are headed higher. Although stocks remain not far from recent all-time highs, there could be something even more critical to financial markets in the near-term. The yield on the 10 year note is not far from crossing an important line. World renowned money manager Bill Gross believes that... Continue Reading

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January 11, 2017 |

Latest Fed Minutes Most Hawkish In Years-Or Are They?

hawk

Last week, investors got the latest release of the FOMC meeting minutes. Although at first glance the minutes appeared to be considerably more hawkish, the central bank did also cite some risk it sees in the New Year. While it can also be a matter of interpretation to a degree, upon a closer examination of the minutes the Fed still seems rather cautious. The central bank voted to raise rates last month for just the second time in a decade, and while the Fed now... Continue Reading

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