Posts On Economic and Geopolitical News

May 31, 2018 |

Is the EU Headed For More Trouble?

Just a few years back, the EU, and Greece specifically, dominated the financial media as the nation headed for a major default and bankruptcy. Sovereign debt issues have been an area of focus in the region for some time, and there has been ongoing discussions about the health of the union for years. Those discussions are likely to pick up in pace once again, as recent developments in Italy are a major cause for concern. The country is headed for new elections later in the... 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 24, 2018 |

Now is Time to Get Ahead of the Curve 

Just Another

The commodity bull market has seemingly begun. Oil prices are now trading at multi-year highs, with Nymex crude trading over $72 per barrel and Brent crude trading around the $80 level. Crude has been on the offensive even as the dollar index has also moved up to multi-month highs. The strength being seen in oil is likely due to several factors, however, recent economic strength and the potential for lower supplies are two of the main drivers. Some analysts have already begun to suggest that... 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 15, 2018 |

Is a Big Drop on the Way?

Stocks have been moving higher for the better part of a decade now. It is noteworthy that during the recent bull run, the market has seen very little in terms of serious or protracted corrections. Stronger economic data, more jobs and higher wages have all recently fueled the market’s ongoing upside, but at some point, the stock bulls will run out of ammunition. In fact, the economy is becoming overdue for its next recession, and it is also not clear just how long the recent... Continue Reading

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May 14, 2018 |

Why Investors Must Watch the Dollar

After seeing months of lower prices, the dollar index has been on the rebound lately, trading at a 4.5 month high in recent sessions. The upside in the dollar has kept a bit of a lid on gold prices-for now anyway-and the relationship between the metal and the currency is a very important one to understand. Like many other commodities, gold is denominated in dollars. This means that when the dollar is higher in value, gold becomes relatively more expensive for buyers in other currencies.... 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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May 2, 2018 |

Is the Fed Behind the Curve?

Interest Rate Block

Inflation has been a topic of discussion for some time now as the Fed seeks to normalize monetary policy. The Commerce Department reported today that the PCE (personal consumption expenditures price index) jumped to 2% year-over-year in March. That 2% is the Fed’s desired annual target for inflation. Inflation is gaining further traction due to a tightening labor market as well as recent tax cuts that are providing economic stimulus. Just last week, the government reported that wages and salaries saw their biggest increase in... Continue Reading

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