Posts On Economic and Geopolitical News

July 14, 2017 |

Yellen Comments Deemed Dovish

FOMC

In what may be the most significant commentary of the week, Fed Chairwoman Janet Yellen’s prepared remarks have been released ahead of her testimony before the House Financial Services Committee today. Ms. Yellen alluded to the pace of further rate hikes being very gradual, and it seems that rates will not reach levels seen in previous tightening cycles. Investors will be paying close attention to her commentary before the committee later today, as well as to the Q&A session to follow. You have to wonder... Continue Reading

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July 12, 2017 |

Keep Buying

dip

Gold has been on the defensive in recent trade, and prices are approaching the $1200 per ounce level. Recent hawkish commentary from the Federal Reserve, as well as from the central banks of Canada, Europe and even Japan have kept animal spirits going as investors anticipate the end of the easy money era. Although some investors may consider this to be cause for celebration, it is also important to consider just how long it has taken to get to this point. After all, the U.S.... Continue Reading

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July 6, 2017 |

Will Data Call the Fed’s Bluff?

highs near

This week could be an important one for the gold market, as recent hawkish commentary from the Fed has driven a shift in sentiment. Investors will get the opportunity to see for themselves, however, as the latest Fed meeting minutes will be released and as the key jobs data from June is released at the end of the week. In recent trade, gold has not been able to get much going to the upside, as the hawkish tone from the central bank and stronger equities... Continue Reading

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July 4, 2017 |

Insurance No Longer Optional

House of Cards

These are scary times we are living in, scary times. Although on the surface things may look grand and rosy, peeling back the onion shows an economy on shaky ground, a massive Fed balance sheet, geopolitical turmoil and stock valuations that may be considered “out of the stratosphere.” This charade could continue for some time, but the endgame may remain unchanged. Stocks could be setting up for one of the most, if not the most, significant crash in history. Although many may look to put... Continue Reading

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June 30, 2017 |

Gold Showing Underlying Strength

Another blow to the dollar

Although the gold market has thus far been unable to stage a convincing upside breakout from its recent trading range, the metal’s performance despite numerous potentially bearish factors could be viewed as a major sign of strength. Gold has not faltered despite higher equities, slumping crude oil and a more hawkish Fed. In fact, the risk-on mentality along with the notion of additional rate increases has not put much of a dent-if any-into the yellow metal. This would seemingly indicate that buyers are happy to... Continue Reading

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June 28, 2017 |

Are Central Banks warning About the Next Major Crash?

Although 2008 – 2009 may seem like a long time ago at this point, many will remember the financial market mayhem like it was yesterday. Numerous investment professionals and even central bankers are now sounding the alarm bell, citing some eerie similarities between then and now. High-risk lending has been on the rise over the last year or so, and it was high-risk lending that triggered the mortgage meltdown in 2008. It is easy to understand how such lending is one the rise, however. GDP... Continue Reading

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June 26, 2017 |

Tick Tock Tick Tock

The bull market in equities is approaching the ten year old mark. This is significant because no stock market rally has ever reached the ten year mark without seeing at least a 20 percent downturn at some point. The Dow is up a phenomenal 200+ percent since the 2009 lows, and has yet to look back. We believe that the next major crash is coming, and likely coming sooner than many would care to believe. Although the next major catastrophe is likely to be blamed... Continue Reading

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June 22, 2017 |

Is Slumping Crude Oil a Bad Sign?

Oil is hitting fresh 2017 lows in recent trade, and it is certainly having an impact on equities. “Black gold” traded below the $43 per barrel level today, and all signs appear to be currently pointing to ongoing downward pressure. Oil can potentially be a good barometer of overall economic activity, and the recent slide in prices to their lowest levels of the year cannot be ignored. Continuing worries over a global oversupply are preventing any significant rise in prices, and until that oversupply is... Continue Reading

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June 17, 2017 |

Did the Fed Leave a Bad Taste in Some Mouths?

In our previous post, we discussed the potential implications of another rate hike from the Fed. The central bank’s decision to raise rates another 25 basis points seems to have left many wondering about the bank’s endgame-and some have even gone so far as to suggest that the Fed needs to unwind the current system of fiat currency. In a recent interview with Kitco.com, Ron Paul stated that Fed Chairwoman Janet Yellen should be working with the government to “unwind the system of fiat currency”... Continue Reading

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June 16, 2017 |

Inflation Expectations Remain Subdued

This has been seen before and will likely be seen again. The Fed raised interest rates on Wednesday afternoon by 25 basis points in a move that was widely expected. The twist, however, may be in the differing outlook on inflation between the Fed and the markets. One need only look at the latest reading on the Consumer Price Index to see this. On Wednesday, the latest reading on CPI registered a figure of -.1%. Not only was the core reading a full tenth of... Continue Reading

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