Posts by Kirill Zagalsky

October 26, 2017 |

Is Gold Waiting on the Fed?

Federal Reserve

Price action in gold recently has seen some significant whipsaws. Given the numerous bullish issues that could serve as the backdrop for a sustained rally higher, many investors may be wondering what might be driving the current selling pressure and volatile price action. Could it be the Fed? The Trump administration has been moving closer to a decision on who the next Fed Chair may be. Although current Chairwoman Janet Yellen may still be in the running, rumor has it that President Trump is leaning... Continue Reading

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October 20, 2017 |

Why the Next Crash Could be Worse than 1987

Stocks have been climbing for a solid decade now, and more and more investors appear ready to jump on the bandwagon for fear of missing additional gains. As has been discussed at length in previous posts, however, the market has the potential to take a swift and severe turn lower, catching many investors off-guard in the process. In fact, the next major stock market crash could potentially be greater than what was seen in 1987, when the Dow lost almost a full quarter of its... Continue Reading

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October 16, 2017 |

A Lot More of the Same

all-time

Yesterday, investors got the release of the latest Fed meeting minutes. For those looking for more clarity from the central bank regarding its plans for monetary policy going forward, the minutes were likely a disappointment. In its commentary, the central bank discussed jobs, a lack of inflation and a stronger economy. They also again reiterated another rate hike this year. While the Fed focused on a number of positives, there are some key negatives that cannot be overlooked. The Fed’s failure to spark meaningful inflation... Continue Reading

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October 10, 2017 |

The Market’s Demise May Be Another Step Closer

The stock market continues to show strength as it remains on a decidedly upward trajectory. Recent articles in financial media have even discussed the possibility of a good old-fashioned melt-up in stocks from current levels. Although the market could certainly see further gains from current levels, eventually the stock bulls will run out of gas and things will turn. While no one knows when stocks could reverse course or even collapse, the magnitude of those declines would seemingly be increasing with each and every new... Continue Reading

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October 4, 2017 |

Don’t Be Fooled

George Washington

The gold market has come under some selling pressure in recent weeks and can be viewed in one of two ways: First, that the recent rally is failing and that further downside could potentially be seen or, secondly, that the current dip from recent highs is nothing more than back and fill trade and an excellent opportunity to buy gold at a relative discount. Sure, the dollar index has been rebounding a bit and that may be weighing on gold. And yes, stocks remain at... Continue Reading

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September 28, 2017 |

A Powder Keg

Gold is seeing a moderate pullback on Tuesday following gains to start the week. The situation with North Korea appears to be deteriorating, and investors finally appear to be waking up to the fact that an armed conflict could potentially be seen in the coming weeks or months. North Korea has stated that the U.S. has declared war on the nation, and has also threatened to attack U.S. bombers even if not in North Korean airspace. This follows President Trump’s threat to destroy North Korea... Continue Reading

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September 22, 2017 |

Anything New From the Fed?

FED

The highly anticipated FOMC meeting has now come and gone. Although the central bank elected to leave rates unchanged-for now any-the bank did announce it would start the process of reducing the size of its massive balance sheet. This announcement did not come as a surprise to markets, and thus far the market’s reaction to the announcement has been pretty quiet. The central bank stated that it will begin the unwinding process in October, reducing its balance sheet by $10 billion per month. The Fed... Continue Reading

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September 18, 2017 |

Are Markets Ready to Ignore North Korea?

North korea missile

The ongoing conflict with North Korea has been going on for months now, and it has at times shaken global financial markets. The tough rhetoric coming from both sides has kept investors on edge, although the threats from North Korea may begin to fall on deaf ears. Tough talk from the North has been largely absent in recent days, until today. A North Korean State agency reportedly threatened to use nuclear weapons to “sink” Japan and reduce the United States to “ashes and darkness.” The... Continue Reading

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September 12, 2017 |

Gold set to Continue Higher

found a bottom

Gold prices have slowed down a bit in recent action following strong gains seen in recent weeks. In fact, the yellow metal now looks poised for a run at the $1400 per ounce price level, and there really does not appear to be much standing in gold’s way. As we discussed previously, a pullback allowing some back and fill trade in gold is not only likely, but also a good thing. Markets rarely go straight up or straight down, and when they do such moves... Continue Reading

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September 7, 2017 |

Nuclear Chicken

Over the weekend, North Korea reportedly performed a successful test of a hydrogen bomb. The underground test caused significant seismic activity, and state media was quick to call the test a success. This latest provocation by North Korea has upped the stakes once again. For those of you who do not know what a hydrogen bomb is, it is a nuclear device that uses fusion (or the joining of atoms) rather than fission (or the splitting of atoms) to release energy. The fusion bomb is... Continue Reading

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