Posts by Kirill Zagalsky

July 1, 2018 |

Further Dollar Strength Could Trigger the Next Major Debt Implosion

The issue of global dent has been widely talked about for some time. Unfortunately, sometimes the damaging effects of massive debt are ignored due to a “borrow now, worry about it later” mentality. The EU has had more than its share of debt problems in recent years, with the financial crisis in Greece having had a significant impact on global financial markets. Other nations have issues as well, and Italy has once again become a primary area of focus. Italy is one of the most... Continue Reading

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June 29, 2018 |

Buy With Both Hands

Gold prices are under pressure again today, as the metal tries to find a bottom around a six month low. While short-term traders-AKA speculators-may be exiting long positions or even selling the metal short, the patient, long-term investor is likely trying to get as much gold as they can right now. The globe is currently seeing numerous issues that could cause an explosive situation in financial markets. The potential for a global trade war, rising inflation and further issues in the EU could all have... Continue Reading

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June 20, 2018 |

It’s All a Big Bubble

Although stocks are down in early action Monday to kick off the new trading week, the market has shown great resiliency in recent months. In fact, there has been little to put a stop to the market’s upward trajectory, and investors appear to be quite comfortable buying stocks even at current levels. Tech stocks are flying high while more defensive equities such as telecommunications, healthcare and pharmaceuticals are seemingly being left behind. Some analysts have suggested that this points to a massive bubble in assets,... Continue Reading

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June 13, 2018 |

Now is Not the Time to Be Complacent

blog

Stocks continue to show signs of strength, and market volatility remains quite low. Investors seem quite confident in the market and the economy, and appetite for risk remains robust. Given the relative calm that has been seen for some time now, many investors are likely growing too comfortable in the market’s ability to keep moving higher. It is times just like this when the market could decide to deliver a jolt to overly optimistic investors. Now is not the time to be complacent. Although the... Continue Reading

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June 7, 2018 |

The Inflationary Effects of a Trade War

Recent dollar strength, stronger stocks and overall robust appetite for risk have all weighed on gold in recent weeks. Despite these headwinds, however, the yellow metal has not succumbed to any significant selling. All of the issues potentially weighing on gold prices currently are likely temporary. Stocks will probably not continue to go up indefinitely, the dollar is likely to roll over again and there will come a point when risk aversion is a major market theme. There is another major issue, however, that is... Continue Reading

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May 28, 2018 |

A Double Whammy

The gold market is seeing some strong upside on Thursday as geopolitical risks and the Fed both fuel buying. In a move that was far from a surprise, President Donald Trump has officially cancelled the upcoming summit with North Korean leader Kim Jong Un. “I was very much looking forward to being there with you,” Trump said in the letter to the North Korean government. “Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate,... Continue Reading

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May 22, 2018 |

The Dollar Rally Won’t Last

The Dollar Index has been on a tear in recent weeks, gaining considerable ground against the euro and other currencies. Although the currency is not the primary catalyst for changes in the price of gold and other hard assets, it does have a major influence on commodities and assets that are denominated in dollars. Some analysts have suggested that recent dollar strength has been behind some moderate weakness in gold. While that may be true, to an extent, the rally in the greenback is likely... Continue Reading

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May 16, 2018 |

3 Reasons to Consider Exiting Stocks Now

More Trouble Ahead

The stock market seems to keep going and going. The market has had little, if any, in the way of major pullbacks or retracements since the current bull market began about a decade ago. The market seems unable to go significantly lower, and the current level of bullishness borders on the dangerous. Price action like that has been seen in recent months has a tendency to suck investors into the market-especially those that have been waiting for that big “pullback” to get long. As these... Continue Reading

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May 10, 2018 |

Why You Should Be Watching Oil

Just Another

The crude oil market has been working its way back higher for some time now. Nymex crude is trading for over $70 per barrel, the highest level since 2014. Brent crude has its eyes on the $76 level. The oil trade could, however, see some exploding volatility in the days and weeks ahead. President Trump has announced that he will make a decision on the Iran nuclear deal made in 2015 this week. Although many have urged the President to remain in the deal, the... Continue Reading

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May 4, 2018 |

Is Inflation Becoming a Cause for Concern?

Close to the Fed

At the conclusion of the Federal Reserve’s two day meeting on Wednesday afternoon, the central bank kept rates at current levels in a move that was expected. The central bank did, however, take note of rising prices and said it now expects inflation to run near its 2% target “over the medium term.” The central bank’s commentary will be very closely scrutinized by investors, and at first glance appears to contain a more hawkish tone. The Fed could in fact be setting the stage to... Continue Reading

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