Posts On Economic and Geopolitical News

April 6, 2017 |

Is It Time To Fasten Your Seatbelt?

Seatbelt

The stock market had a great first quarter-no doubt about it. The question now is: Will the second quarter see the same degree of buying interest? Or will the rally begin to really fizzle? Gold also had a solid first quarter. The yellow metal hung tough despite stronger stocks and a higher dollar index. It also performed well in spite of rising interest rates. Could stocks and gold continue to rise together? Sure, there is certainly nothing to say that these markets cannot both climb... Continue Reading

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April 4, 2017 |

Does Quiet Mean Noise Ahead?

Calm before storm

The gold market has been trending higher in recent weeks as geopolitical uncertainty keeps a floor under prices. The yellow metal has performed quite well given the fact that stocks remain not far from recent highs and the dollar index may be recovering. Of particular note, however, is the fact that gold trading volumes have been low. Not only that, but sales of gold bullion have been very low. Why might this be you may be asking? It’s possible that many investors are trying to... Continue Reading

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March 30, 2017 |

Now Is The Time To Be Proactive

House of Cards

Right now may be the ideal time to consider moving some assets around. Although stocks are not far from recent highs, recent price action in the equity markets could potentially be considered a shot across the bow. Investors have gotten a glimpse of market volatility-that hasn’t been seen in some time- and there could potentially be more where that came from, a lot more. The CBOE’s VIX, a widely used measure of market volatility, remains stubbornly low. The VIX is often referred to as the... Continue Reading

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March 28, 2017 |

Obamacare Vote

Health Care Sign

The stock market has been riding high since the Donald Trump Presidential election victory. Stocks have been moving higher and higher as interest rates rose and gold tumbled. Gold has rebounded strongly, however, and stocks appear to be at a crossroads currently. The stock market is having its work week since November, and recently saw the first down day of greater than one percent since October. In fact, equities appear to be in the midst of a breakdown from their recent trading range, and more... Continue Reading

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March 24, 2017 |

Is The Trump Rally Finally Fizzling Out?

Stock Market Panic

The stock market has made significant gains since the Donald Trump Presidential election victory in November. Stocks have moved higher on the notion of significant tax reforms and a large fiscal spending plan. Interest rates moved higher while the dollar index also saw a major boost. The gold market sold off on the Trump win. Investors appeared content buying stock and appetite for investment risk was robust. Things could be turning, however. Yesterday, the stock market saw its largest one day drop since October. Since... Continue Reading

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March 22, 2017 |

Was the Fed More Dovish Than Expected?

George Washington

Last week, the FOMC meeting took place over Tuesday and Wednesday with the central bank’s decision to raise the Fed Funds rate by a quarter point being announced at the meeting’s conclusion. The decision to hike rates came as no surprise. The Fed had taken steps to inform markets that a rate hike was not only possible but likely coming several weeks ago. Clearly, the Fed did not want to upset financial markets by catching investors off-guard with an unexpected rate hike. The Fed did... Continue Reading

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March 20, 2017 |

Not So Fast…

Coins Interest Rate Hike

The Federal Reserve this week is lifting its key interest rate by .25%. This move by the central bank did not come as a surprise. It seems the Fed took various steps in recent weeks to “warn” markets that a March rate hike was coming-even though just several weeks ago the odds or a March hike by the Fed were very small. Given much of the recent hawkish talk from various Fed officials, the question no longer was if they would raise rates three times... Continue Reading

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March 16, 2017 |

Will the Rally Resume?

major hurdles

After getting 2017 off to a stellar start, the gold market has been under some pressure in recent weeks, declining by over $60 per ounce. The selling seen in recent sessions could potentially provide another opportunity to buy gold at lower levels. The gold market apparently did not fully discount a March rate hike from the Fed. The central bank has taken a decidedly more hawkish tone in recent weeks, and essentially informed markets that a March hike was not only on the table, but... Continue Reading

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March 14, 2017 |

More Signs of an EU Breakup?

Global Money

Think right now with rising stocks, rising interest rates, better economic data and a more hawkish Fed that there isn’t good reason to own gold? Think again… Spreads on Credit Default Swaps, or CDS, are rising for some EU countries. This would seemingly indicate that traders and investors may be getting more nervous about a potential breakup of the union, or of a key country deciding to leave as Great Britain did. A rise in these swaps simply means that more insurance is being purchased... Continue Reading

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March 10, 2017 |

Is It About to Hit the Fan?

Gray Capital Building

Stocks just seem to keep going and going…Markets have moved higher on the notion of significant tax reforms and a big boost in fiscal spending. Financials have cheered on the idea of less regulation and potentially higher interest rates. Much of the economic data has continued to point to ongoing improvement, and inflationary pressures are on the rise. While it seems right now that markets could potentially continue higher from current levels, some believe that the markets may be in for a big surprise. In... Continue Reading

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