Posts by Kirill Zagalsky

April 22, 2018 |

Global Debt Has Reached a New High

Itll Keep Going

According to the IMF, global debt has reached a new peak. Not only that, but according to the fund, there are three countries responsible: The U.S., China and Japan. These nations account for over 50% of total global debt, and China alone is responsible for about 75% of new private debt since the financial crisis. The numbers are nothing short of staggering: The IMF’s fiscal monitor reportedly stated that total debt reached $164 trillion in 2016. That figure, incidentally, represents 225% of global gross domestic... Continue Reading

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April 18, 2018 |

3 Important Questions to Ask

just the beginning

There is without question a very strong case to be made about why you need to have physical gold as part of your portfolio. This asset class can not only potentially see significant appreciation in value, but may also provide an important hedge against numerous economic and geopolitical issues such as inflation, deflation, a weaker dollar and more. Perhaps the more important question to be asking is not if you should incorporate gold into your investment strategy, but rather how much gold should you buy... Continue Reading

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April 12, 2018 |

The Fed May be the Biggest Risk to the Stock Market

US Treasury, Debt Ceiling

The stock market has a number of issues to contend with currently if it is to keep moving higher and continue the bull market that began nearly a decade ago. Geopolitical risks-including a potential trade war and even armed conflicts in more than one location-are weighing on market sentiment. Of all of the current risks the stock market may face, however, the biggest potential threat to the equities market could be the Fed. The central bank has already begun to take steps to normalize monetary... Continue Reading

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April 6, 2018 |

Are Markets Topping?

decline for stocks

The roller-coaster continues. After seeing significant selling to start the week off, stocks rebounding on Tuesday. The Dow Jones Industrial Average finished higher by nearly 400 points on the day, and investors appeared to be putting worries over a trade war behind them-at least for the day. As has been discussed in previous posts, however, there is likely something much larger brewing in the equities markets. Recent volatility, along with a significant spike in the markets fear gauge, the “VIX,” could point to a topping... Continue Reading

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March 30, 2018 |

Stocks Could be Ready to Crack

stock-market-crash-crisis copy

The stock market is still not too far off from recent highs. In fact, the market remains in striking distance of the 3000 level on the S&P 500. A few good weeks, and the market could be carving out fresh new all-time highs. Investors may simply be waiting until the recent pullback has subsided before looking to get long again. Such is the way the stock market works during a bull market-until it doesn’t. The market has been showing signs of exhaustion recently. The spike... Continue Reading

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March 25, 2018 |

The Trade War is Underway

Yuan

This past week has some a fair amount of market volatility as the potential for a large-scale trade war heats up. The Trump Administration this week announced tariffs on up to $60 billion in Chinese goods, a move that was not unexpected at this point. The order could, however, be just the first of several actions to come from Washington as it looks to erode what it sees as significant advantages to China and elsewhere. The tariff announcement comes just weeks after tariffs on steel... Continue Reading

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March 21, 2018 |

Is This Week all About the Fed?

FED

There is certainly no shortage of things happening right now that could potentially affect financial asset prices. One of the major potential catalysts for price action this week is likely to be Wednesday’s Fed meeting. It is widely expected that the central bank will take another step towards normalizing monetary policy. The central bank will likely raise the Fed Funds Rate by another 25 basis points. Markets seem prepared for such a move from the Fed, and will probably be far more interested in what... Continue Reading

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March 15, 2018 |

Three Reasons Physical Gold is the Ultimate Investment

the big picture

Unlike paper assets such as stocks or bonds, physical gold brings a lot more to the table than the potential for higher prices or dividends.  If you do not already own physical gold, here are three major reasons you need to consider an allocation right now. Gold is the only real form of money: The problems associated with fiat, or paper currencies, are nothing new. Paper money has shown a strong tendency to lose value over time. As paper money declines in value, so does... Continue Reading

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March 9, 2018 |

Did the U.S. Just Get One Step Closer to an All-Out Trade War?

Trade Talks

Recently, we discussed some of the potential implications of a global trade war following the Trump administration’s decision to impose tariffs on steel and aluminum. Regardless of what side of the aisle you may be on, investors are still trying to decide just how significant an impact such tariffs may have on companies and financial markets. Following the decision, economic advisor Gary Cohn submitted his resignation yesterday. Cohn was considered to be a strong supporter of free trade, and apparently did not feel he could... Continue Reading

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March 6, 2018 |

Is Further Downside in the Dollar on the Way?

cake and eat

It’s no secret that the dollar has been under pressure in recent months. The idea of rising deficits, ongoing relatively low interest rates and more aggressive monetary policies in other parts of the world have all played a role in the greenback’s slide. The dollar recently tried to rally as Fed Chairman Jerome Powell has not eased fears of three rate hikes this year and possibly a fourth. Higher rates could boost the dollar, as it could mean potentially higher returns for those holding dollars.... Continue Reading

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