Are Markets Topping?

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

The Trade War is on

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

Stocks Could be Ready to Crack

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

Don’t be Fooled

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

The Trade War is Underway

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

Another Quarter Point Hike

On Wednesday afternoon, the Federal Reserve hiked the Fed Funds Rate by another 25 basis points, bringing the rate to 1.50-1.75%. This move from the central bank was widely expected, and investors are likely to be far more focused on the commentary from the central bank after the announcement. The Fed forecast at least two more hikes this year, and also upgraded its outlook on the economy. The combination of tax cuts and government spending are cited as potential catalysts for higher inflation and a... Continue Reading

Is This Week all About the Fed?

There is certainly no shortage of things happening right now that could potentially affect financial asset prices. One of the major potential catalysts for price action this week is likely to be Wednesday’s Fed meeting. It is widely expected that the central bank will take another step towards normalizing monetary policy. The central bank will likely raise the Fed Funds Rate by another 25 basis points. Markets seem prepared for such a move from the Fed, and will probably be far more interested in what... Continue Reading

The Time to Prepare for the Next Recession is Now

The current economic expansion in the U.S. is the third longest recorded. And while the idea of a never-ending expansion is certainly appealing, it is also straight out of fantasyland. The economy will see another recession, and the next one could be closer than many have been anticipating. And it could be brutal… Whether its next year, two years from now or even early in the next decade, the next recession could have a significant impact on the economy. Only this time, the Fed may... Continue Reading

Three Reasons Physical Gold is the Ultimate Investment

Unlike paper assets such as stocks or bonds, physical gold brings a lot more to the table than the potential for higher prices or dividends.  If you do not already own physical gold, here are three major reasons you need to consider an allocation right now. Gold is the only real form of money: The problems associated with fiat, or paper currencies, are nothing new. Paper money has shown a strong tendency to lose value over time. As paper money declines in value, so does... Continue Reading

Category |

Is a 40 Percent Correction in the Cards for Stocks?

Risks for stocks seem to be increasing by the day. That being said, it could still me time before stocks finally make a long-term top. After all, numerous analysts have been calling for a top for some time now, yet the market has remained stubbornly bullish. Whether the top is finally reached tomorrow, next week, next month or sometime next year, the end of the bull market is likely on the horizon. While a “correction” is defined as a pullback of 10 percent or more,... Continue Reading