Posts by Adam Baratta

February 20, 2017 |

Rising Inflation

fresh QE

The gold market may potentially be benefiting from rising price pressures, among other things. The yellow metal has performed well in recent weeks, and has been on the stronger side of the ledger even in spite of stocks making fresh all-time highs and the dollar index remaining higher. This week saw some key inflation data that showed price pressures are on the rise. On Wednesday, the latest reading on the Consumer Price Index showed a rise of .6 percent last month, well above consensus estimates... Continue Reading

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February 14, 2017 |

Good Things Come to Those who Wait

The White House

The stock market recently forged fresh all-time highs as President Donald Trump promised quick action on tax reforms. Stock markets had been seeing some consolidation in recent trade, as investors appeared to be taking a wait and see approach. Without a doubt, the new administration has hit some stumbling blocks. The recent immigration bad was halted by a federal judge, and thus far appeals on the ruling have not been favorable for the administration. Trump adviser Kellyanne Conway may potentially be in some hot water... Continue Reading

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February 8, 2017 |

Steady as She Goes

Travel Ban

With little economic data set for release this week, investors will likely focus on the recent FOMC meeting as well as any headlines regarding the Trump administration’s travel ban and other policies. Last week, the FOMC voted to keep rates steady at current levels and did not give much of a time table in terms of hiking rates further. Although markets were not expecting any action from the Fed last week, the lack of further clarity on additional hikes could potentially fuel more buying interest... 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 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 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 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 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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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

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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

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