Posts On Economic and Geopolitical News

April 26, 2018 |

Has the Tipping Point Finally Arrived?

the dips

Stocks have seen some pressure in recent days, as more and more investors believe that the bear market in bonds has finally run its course. With the 10 year note yield currently right around the 3% level, investors seem to be getting increasingly anxious. The 3% level in yields represents an important psychological barrier that, if broken, could see a sharp and rapid rise even higher in rates. Some analysts have already hiked their year-end predictions for the benchmark 10 year note, calling for yields... Continue Reading

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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 20, 2018 |

Is the Next Major Commodity Cycle Getting Started?

Global equity markets have dominated much of the financial media in recent years. The ascension of stocks following the major crash of 2008-2009 is certainly a story worth telling. Many investors who bought in heavily around those lows have likely amassed a small fortune as the market has continued to climb. Nearly a decade into the bull market, however, the market is finally showing some significant signs of topping. Recent volatility could be a good indicator of a topping process already underway. Bull markets do... Continue Reading

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April 16, 2018 |

Is It Really a Dollar Rally?

Economic Indicators

Gold prices have been moving higher in recent weeks, and showing some signs of underlying strength. As can be expected, the market has seen some buying interest come in as geopolitical tensions escalate. Last weekend’s chemical weapons attack in Syria had investors seeking out the perceived safety of gold and caused some selling in equities. A recent comment from President Trump, however, has stocks rallying today as risk appetite has returned. As stocks move higher today, gold is moving lower. Although such a move should... Continue Reading

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April 10, 2018 |

Forget Price for a Moment

don't wait any longer

Although the potential for higher prices is certainly a reason to buy and hold gold, there are several other reasons, perhaps even more important reasons, to buy and keep the metal. While most investors have been fixated on the stock market for the last decade, the gold market potentially represents an excellent value at current price levels. Not only that, but the current state of the economy and geopolitical landscape may also warrant a significant allocation in gold. Below are three primary issues that should... 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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April 4, 2018 |

The Trade War is on

Volatility Spike

Over the weekend, China announced tariffs up to 25% on a variety of U.S. imports, including pork, nuts, fruit and wine. The action taken by Beijing is in direct response to recent tariffs announced by the Trump administration. The recent actions taken represent a heightened state of tensions surrounding trade, and may continue to keep investors on edge. The war on trade could potentially escalate, and regardless of what side of the political aisle you may lean towards, it could have a significant effect on... 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 29, 2018 |

Don’t be Fooled

busy week

Concerns over the health of the stock market have been on the rise, and last week’s volatility certainly did not do the bulls any favors. As the threat of a significant global trade war accelerated through fresh action and tough rhetoric, investors saw fit to book profits and run for the exits. Monday saw a completely different looking stock market, however. The market saw its strongest single day performance since 2015, with the Dow Jones Industrial Average rising by some 670 points. A monster day,... 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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