Posts On Economic and Geopolitical News

July 2, 2018 |

Will Stocks Force a Retirement Crisis?

Although stocks have shown some signs of trouble in recent sessions, the market has been quite resilient in recent months. Volatility remains at subdued levels, and while there may be whiff of selling in the air, the bears have yet to really show their teeth. The aging bull market will at some point make its final high-if it hasn’t done so already. Not only that, but the economy is likely to slow significantly in the quarters ahead, and the next major recession could be seen... Continue Reading

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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 25, 2018 |

Is the Economy Running on Borrowed Time?

Without question, the U.S. economy is currently on more solid footing than it was a few short years ago. The labor market is strong, with unemployment levels at the lowest levels in years, and recent growth figures have in some cases exceeded expectations. The Fed has even begun the process of monetary tightening, lifting interest rates off the ultra-low levels seen over most of the last decade. Recent tax cuts and massive government spending are certainly playing a role in the current economic expansion. Stocks... 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 15, 2018 |

An Expanding Danger

Gray Capital Building

As was anticipated, the Federal Reserve raised the key benchmark rate 25 bps to 1.75-2.00%. The central bank appeared to have a slightly more hawkish tone in its statement, and has made clear that it will hike rates twice more in 2018. The central bank did, however, stick with its previous forecast for three rate hikes next year. Although rates are not likely to get anywhere near levels seen in previous tightening cycles, they are expected to continue to rise gradually. The idea of higher... Continue Reading

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June 13, 2018 |

Now is Not the Time to Be Complacent

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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 12, 2018 |

Things Could Get Dicey

Economic Indicators

Global markets have exhibited a large degree of calm in recent weeks. That prevailing sense of calm, however, could potentially be hit by some tidal waves in the week ahead. Over the next several days, there are several major issues that have the potential to be market-moving. Over the weekend, the G7 meeting in Canada could make a splash as tensions are running high over global trade. The issue of global trade and the potential for a significant trade war have been a major source... 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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June 5, 2018 |

It Will Only Get Worse

The recent spike in market volatility seen this past week based on unfolding events in Italy should only serve to underscore the importance of being hedged against increasing volatility and rising yields. Although markets are seeing a sense of calm return the last couple of days, the EU-and global markets-remain vulnerable to geopolitical developments that threaten the status quo. It is also important for investors to understand a critical point: That without global central banks still pumping money into the financial system, things could have... Continue Reading

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