The financial crisis of 2008 wreaked plenty of havoc and is something few Americans will forget. Yet, thanks in part to the Emergency Economic Stabilization Act of 2008, things took an upward trajectory. For a decade, low-interest rates fueled an enormous run-up of the stocks,...
32 Year low In Sterling US dollar exchange rate Improving Economic Data Post Brexit Vote Bank of England Willingness To Take Action With US stock prices at record highs and little room for further price growth in the immediate future given the hawkish outlook from...
The latest comments by Federal Reserve Chair Ms. Yellen have given the US dollar a boost and spooked the Bond market. Yellen made a speech at Harvard on Friday morning, and the market read her statements as being conclusive to more hikes during 2016. It...
Precious metals have had an attractive return so far for 2016, and continued volatility in the stock markets is only helping. On Friday, Non-Farm Payrolls were released for the previous month of April; the market had been expecting a number around 200k. The actual number...
The US dollar lost 2.15% against the Japanese yen in the space of 15 minutes after the Bank of Japan (BoJ) announcement on interest rates. The spin-off from this turmoil provoked a fall in the S&P 500 of 0.7% within the same space of time;...
A look at various commodity prices since beginning of year Commodities have had a remarkable first quarter in 2016, and the turnaround has been substantial and not limited to just Crude Oil and Gold. Soybeans, Silver & Cocoa, have seen their prices grow sharply over the...
Puerto Rico has been in a period of economic stagnation that goes back decades. Along with the decline in GDP, it has also been losing citizens to the mainland, a trend that is causing a decreasing population. High government spending and low economic activity are...
Strength of most recent rally subdued Not all stock market rallies are made the same. Some have incredible momentum, with average daily gains well above 1% and many single day gains above 3%. A strong upward move in a broad index indicates the strength of a...
Stocks have had an amazing rally since they bottomed out in March 2009 at 735. Over the next 6 years, the S&P 500 reached a new high in May 2015 at 2107, which represented an 186% increase from trough to peak. This sustained rally created...
Back on December 14, I argued that various fundamental, technical and macro developments indicated that the stock market was set for a fall. Call it luck rather than skill, but the S&P 500 index slid roughly 200 points over the following two months, hitting a closing low for 2016 on...
There was a time when you might well have asked who cares if China’s debt load is excessive? But things have changed so much; China is now the second largest single economy in the world. As we saw last summer and at the beginning of...
Based on recent reports, many investors believe the turbulence that impacted various markets earlier this year has come and gone. But that doesn't necessarily mean that sentiment is ripe--sufficiently complacent--for a broad range of negative fundamental and macroeconomic forces--discussed here, here and here--to reassert themselves.In...
The Stock market got off to a bumpy start to the beginning of the year amid concerns about global recession and fears of a hard landing for the Chinese economy. However, the past three weeks has seen the stock market rebound giving the impression that...
Last week's column, "Is the 'Crowd' too Bearish?" discussed whether excessive pessimism on Wall Street had set the stage for corrective countertrend moves in various markets. As of now, the question remains open. After a choppy week, equities and Treasury bond yields ended a tad higher,...
In light of recent market turbulence, one question investors might naturally be thinking about is how concerned should they be? Before answering, it is worth considering two things that old Wall Street hands try to keep in mind.The first is the fact that the investing "crowd" may not be...
Gold makes strong start to the year Gold has put on a great rally since the beginning of the year after having reached a most recent low at the beginning of December last year. Since its close on December 31st it has risen nearly 14%. That...
Gold has gained more than 15% to just over $1,200 an ounce since hitting multi-year lows in December. The Market Vectors Gold Miners ETF (GDX) has fared even better, rallying roughly 40% over the span. The question now, of course, is what happens next.For the...
The Federal Reserve has been getting us used to some sharp changes of heart from one meeting to the next. With talk taking a hawkish stance at one FOMC meeting being taken down by dovish talk as soon as the next. We saw this happen...
The real estate sector's solid performance in recent years has convinced many investors that it is an attractive alternative to traditional investments. For some, it seems, property is a safer haven than gold and other precious metals.However, there are reasons to believe this might not be the case going forward. Arguably, one rationale stems from...
It's tough being a contrarian. Prices may initially move in a direction that is opposite to what is expected. People will offer plenty of reasons why non-mainstream views are wrong, or at the very least, early. It can be difficult to stand firm when enthusiasm...
