August 25, 2016 |

World Bank to Become First SDR Bond Issuer in China

Yuan

The People’s Bank of China recently approved the inaugural issue of bonds denominated in SDRs (Special Drawing Rights) by the World Bank. This is the first bank to receive such approval and represents the beginning of the SDR bond market in the world’s second largest economy. In issuing the SDR bonds, the World Bank is expanding its product base as it looks to open and develop new markets. Why is this important? This new issue of SDR bonds in the Chinese market may yet be... Continue Reading

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August 23, 2016 |

Arizona Considering Gold Bonds

Arizona

The state of Arizona is reportedly considering a way to monetize gold in an effort to counteract the world of negative interest rates and lack of yield. The state recently set up a committee to examine the possibility of issuing treasury bonds that would be payable in gold. Dr. Keith Weiner, the founder of Monetary Metals Inc. and committee member, discussed the potential role such a bond might play. Mr. Weiner is of the opinion that such a bond could benefit not only the state... Continue Reading

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August 17, 2016 |

Is Bond King Bill Gross Saying Go For Gold?

Debt Chain

Stocks are at fresh all-time highs and investors seem to be feeling better about the economy. While investors’ sentiment may not have yet reached the euphoric stage, stocks could potentially have some room to run higher. Or could they? While stock bullishness appears to still be at healthy levels, some investors may be questioning just how much further the current rally can run. Some investors, like Janus Capital Group portfolio manager Bill Gross, feel that perhaps investors should be cutting their risk. Of particular note... Continue Reading

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August 15, 2016 |

The Earlier the Better

another warning sign

The idea of saving early and often is widely publicized in financial media, and this notion is certainly grounded in some very time-tested and solid principles. In fact, it has been shown time and time again that those who start saving early in their working lives and continue to save throughout their working lives can amass some very considerable fortunes. In our view, there are two things that make this possible. The power of compound interest The power of dollar cost averaging Should you look... Continue Reading

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August 10, 2016 |

Welcome Lower Prices With Open Arms

3 reasons

Gold saw some decent selling pressure to end last week’s trading, with spot prices falling by nearly two percent. Friday’s non-farm payrolls data was the primary culprit, as the report showed the U.S. added 255,000 jobs last month-well above consensus estimates of 180,000 jobs. The unemployment rate moved a tad higher, but that may simply be attributed to an increase in the labor participation rate. Combined with positive revisions for both May and June, the jobs data was described by analysts as “stellar, strong and... Continue Reading

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August 9, 2016 |

BOE Takes Action

Economic stimulus

The Bank of England yesterday took some preliminary measures to boost economic activity following the nation’s June 23rd vote to exit the European Union. These measures included an interest rate cut from .5 to a record low .25 percent along with some $10 billion in corporate bond purchases and $60 billion in government debt. And there may very well be more to come… While stocks were heavily sold-off initially following the Brexit vote, they have come roaring back, with some indices reaching fresh all-time highs.... Continue Reading

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August 3, 2016 |

The Stock Market Fallacy

how quickly things can change

After seeing a decent sell-off following the June 23rd Brexit referendum, stocks have not only fully recovered, but the broad market S&P 500 is probing deeper into new all-time high territory. After the S&P fell over 120 handles in the wake of Brexit, the market took just days to recover. Since that recovery, the market has remained on the offensive, with seemingly unstoppable forces behind it propelling it to fresh all-time highs. This begs the question: What powers could be behind the sharp rise in... Continue Reading

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August 1, 2016 |

GDP Outlook Slashed

Gold umbrella

Investors have been cautious this week ahead of Wednesday’s latest FOMC meeting announcement. With no major surprises, the central bank elected to hold rates steady-at least for now-and eluded to the possibility of another rate hike in September. Kind of like kicking the can down the road… The Fed discussed improving conditions in the labor market and stated “Near-term risks to the economic outlook have diminished.” In other words, markets have recovered from the post Brexit freak out-for now anyway. The Fed has left the... Continue Reading

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July 28, 2016 |

Trump Win Could Drive Blistering Rally in Gold

Democrats vs Republicans

It’s no surprise that with a presidential election comes a lot of uncertainty. After all, various candidates can have wildly differing views on the domestic economy, monetary and economic policy, foreign policy and more. There is certainly a lot riding on the upcoming U.S. Presidential election in what is shaping up to be an intense race. In fact, the nation appears to be very divided, with very different opinions and plans being presented by both candidates. As the election approaches, uncertainty surrounding the potential outcome... Continue Reading

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July 26, 2016 |

ECB Ready for More Printing?

Printing press

The European Central Bank met yesterday and as expected, kept interest rates at record lows in an attempt to revive growth and spur inflation. The central bank also added that it intends to maintain rates at current levels, or possibly even lower for an extended period of time. Back in March, the ECB cut its deposit rates deeper into negative territory and increased its stimulus measures. While no action was taken yesterday, the overall message appears to be pretty clear: Rates could remain low and... Continue Reading

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