Posts by Kirill Zagalsky

January 2, 2018 |

Changing Geopolitical Dynamics

North korea missile

Recently, it was reported that China was still sending shipments of crude oil to North Korea. Although this may not be confirmed as of yet, it does underscore the potential for increasing geopolitical issues in the months and years ahead. Currently, economic sanctions against North Korea are designed to cut off about 90 percent of the nation’s oil supply. Needless to say, choking off access to energy can cripple a country’s economy, although it remains unclear if the measures will be enough to deter the... Continue Reading

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December 27, 2017 |

Gold and Bitcoin?

The current Bitcoin and cryptocurrency craze has taken markets by storm. While gold remained relatively range-bound, Bitcoin was moving higher-a lot higher-until hitting the $20,000 market this week. The currency has since pulled back a bit, but it is likely not the end of the run higher. Without offering a guess as to just how high Bitcoin and cryptocurrencies could potentially go, perhaps the bigger question and issue at hand is why these instruments are garnering so much interest. The monetary system has been run... Continue Reading

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December 21, 2017 |

Could a Tax Overhaul Doom Stocks?

Stock Market Panic

If you have ever invested in financial markets before, chances are good you have heard the phrase “Buy the rumor sell the fact.” This is an interesting market dynamic in which a market rallies based on a catalyst such as higher expected earnings, lower rates or new legislation, only to reverse course once that catalyst is actually implemented. Looking at the stock market and its string rise in recent months, you have to wonder if that dynamic will be seen again. Stock strength has come... Continue Reading

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December 11, 2017 |

Will Added Debt Finally Become Too Much?

Regardless of what you may think about the Trump administration’s tax reforms, the current levels of U.S. debt are not sustainable. With over $20 trillion in debt already, the nation could potentially add to the deficit as it lowers tax revenues. The argument for such a move is that increased economic activity and production will pave the way for that deficit to be brought back under control. Even if that proves to be the case, the problem with debt is that not only does the... Continue Reading

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December 4, 2017 |

Just One Explanation for the Next Stock Market Crash

how quickly things can change

The stock market has been rallying for years now, and the bull market in equities is about a decade old at this point. In fact, the market has climbed some 250% since 2009, and as of right now there are no telltale signs of a downturn-yet. While investors may be offered numerous explanations for the heights currently being seen in the stock market, the many years of low interest rates along with massive QE have certainly played a role. Investors have seemingly turned their attention... Continue Reading

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November 29, 2017 |

Yield Curve Playing a Role

busy week

The gold market is seeing some strength to begin the new trading week following the Thanksgiving Holiday shortened week. Some of the primary factors for gold’s recent strength are at work today, including a weaker dollar index and flattening yield curve. The dollar is losing ground as investors deliberate the confirmation hearing for new Fed Chief Jerome Powell as well as the potential for a tax deal actually getting done. The dollar chart is not pretty at this point, and the currency could be eyeing... Continue Reading

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November 17, 2017 |

Why Now May be the Time to Exit Stocks

Herd Mentality

Stocks have had a great run, no doubt. Since bottoming out in the aftermath of the financial crises of 2008/2009, stocks have gained an enormous amount of value. In fact, recent months have seen not only increasing stock market exuberance, but also more and more cautionary tales. The herd mentality is alive and well in stocks, and with each fresh all-time high, more and more investors are getting sucked in-or sucked back in. Markets have an uncanny way of pulling in every last investor before... Continue Reading

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November 13, 2017 |

Gold Could Shine Bright in 2018

The gold market has been relatively range bound for weeks now, could this sideways action simply be the calm before the storm? The market has been leaving some important clues that could point to higher prices. Any significant dips in the price of gold have been met by willing buyers. Despite stocks making fresh all-time highs, the gold market has not cracked, and the bears have been unable to overcome buying pressure. What could potentially lead to higher gold in the months ahead and in... Continue Reading

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November 7, 2017 |

Patience is Key

the stage is set

Gold is showing some undeniable signs of strength that could be indicative of an upcoming breakout in price. While those that are only near-sighted or looking to trade the metal over the short-term may be frustrated with its recent trading range, smart long-term investors may see the current range as a great opportunity to acquire more of it before prices really take off. There are two current issues being seen in the market that are noteworthy: First, the gold market has seen any significant declines.... Continue Reading

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November 1, 2017 |

Is Gold Sending a Key Signal?

just the beginning

The gold market has not given up much ground in recent days as the dollar index saw a significant bounce. In fact, the gold market has tested support levels in the mid $1260’s and has seen buying interest uptick and a bounce several dollars higher from that level. While this may, at a glance, appear to be nothing more than standard market “noise,” it could also be indicative of underlying strength in the gold market and perhaps even a split from the market’s correlation to... Continue Reading

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