October 30, 2018 |

Don’t Fight the Fed, but Don’t Ignore It Either

Federal Reserve

There is an old saying that says “Don’t fight the Fed.” This saying is typically directed at stock market bears that remain bearish equities even as the central bank lowers rates or maintains ultra-low levels of rates that encourage risk taking. The phrase happens to make a great deal of sense, as the Fed is essentially the most powerful financial institution that there is. The Fed has the power to control the money supply, and to “create” new money out of thin air. If the... Continue Reading

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October 26, 2018 |

Heed the Warnings

Yuan

The last couple of weeks have seen rising stock market volatility as numerous issues weigh on markets and investor sentiment. The declines seen in Chinese markets cannot, and should not, be ignored. The Shanghai Composite is off some 25 percent since the beginning of the year, and more downside could potentially be in store. The Chinese economy has already shown some key signs of slowing, and if it does in fact slow further the effects may be felt all over the globe. Chinese officials have... Continue Reading

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October 24, 2018 |

Are Stocks Ready to Really Roll Over?

Gold stock

It was supposed to be a bright day for U.S. stock markets. Both China and Europe were higher in previous sessions and U.S. markets appeared early on ready to follow suit. The gains in U.S. equities evaporated quickly, however, and markets are now trading decidedly lower. Chinese markets have been a major topic of speculation and concern in recent months. The benchmark Shanghai Composite index has lost around a quarter of its value since the beginning of the year. Worries over slowing growth in China... Continue Reading

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October 22, 2018 |

Who Cares if the Fed is Hawkish?

The gold market is up again today, and appears to now be in consolidation mode following strong gains last week. Some sideways price action this week should not only come as no surprise, but should also be viewed as healthy. The bulls may simply be gearing up for the next major push higher. Recent price action in gold has certainly been constructive. The market has covered almost $50 per ounce in upside, and could just be getting started. The recent rally and improving technical posture... Continue Reading

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October 18, 2018 |

Strength Despite Strength

all-time

The gold market has been showing some important signs of strength in recent action. The market has moved sharply higher in a short period of time, and is hovering around a 10 week high. Overall sentiment around the gold market seems to be improving and the market is also now on more sound technical footing. Of particular note today is the fact that gold is higher again despite stocks being sharply higher as well. Stocks are not just slightly higher, either. As of this post,... Continue Reading

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October 16, 2018 |

Time to Buckle Up

Seatbelt

The past week has seen an enormous increase in stock market volatility. In just two sessions, the Dow Jones Industrial Average shed nearly 1400 points, and the NASDAQ officially entered correction territory on Thursday. The sharp and rapid rise in interest rates has been pinned as the primary culprit for the sell-off, and things could be just getting started. Although stocks are sharply higher in early trade on Friday, the rally being seen could simply be more of a relief rally than anything else. The... Continue Reading

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October 12, 2018 |

Is A Tipping Point At Hand?

In early action on Wednesday, the stock market is getting hit once again, and hit hard. Rising bond yields remain the object of blame for today’s sell-off, and the market is showing some significant signs of cracking. The selling seen last week and thus far today could simply prove to be a small taste of the potential carnage ahead. Higher yields are creating competition for stocks, which have enjoyed a significant, decade-long run due in no small part to a lack of viable alternatives. Given... Continue Reading

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October 10, 2018 |

Not So Fast…

US Yield Curve

The sharp rise in bond yields has been the topic of much discussion over the last week, and yields have a lot of room to run even higher. The movement in the bond market has not gone unnoticed by equity investors, and stocks saw some significant selling last week as a result. To be clear, it is not necessarily the rise in yields that has investors upset. Rather than focusing on a specific level in rates, investors are likely far more concerned with the speed... Continue Reading

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October 8, 2018 |

A Shot Across the Bow

Seatbelt

Stocks are getting hit today, and hard, as rising bond yields fuel selling in equities. The recent concerns over higher yields-which are trading at multiyear highs-is only one issue that stock investors will need to contend with in the months and years ahead. None of this is to say that stocks cannot keep going higher, in fact, stocks may very well see a fresh leg higher and new all-time highs going into the end of the year. Once the levee breaks, however, look out below.... Continue Reading

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October 4, 2018 |

Get Ready

just the beginning

The gold market is showing some significant strength today as the metal has once again moved back over the psychologically important $1200 level. It’s no secret that the dollar index has weighed heavily on gold in recent months, but there seems to be increasing concerns that the greenback is not likely to maintain its recent strength. With the recent Fed rate hike having come and gone, and with expectations of another hike before the end of the year already factored into prices, the gold market... Continue Reading

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