Posts On Economic and Geopolitical News

June 14, 2017 |

So What if the Fed Hikes Again

FED

The gold market may see some volatility ahead of this week’s FOMC meeting conclusion. The yellow metal is likely seeing some profit taking ahead of the central bank’s announcement, but that certainly does not mean that the market will not head higher in the coming weeks and months. The Fed may be forced to act this week in order to maintain credibility. The Fed has stuck to its guns in recent communications, and thus far appears to be remaining on track for another two rate... Continue Reading

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June 12, 2017 |

Is Market Risk Highest Since 2008?

Stocks have been moving higher for years now, in fact it has been nearly a decade since the bull market got underway. Although it seems at times that nothing can stand in the way of higher equity prices, some investment professionals have been sounding the alarm bell. One such professional is Bill Gross, affectionately referred to as the “bond king” and manager of the Janus Henderson Global Unconstrained Bond Fund. And when Mr. Gross speaks-people listen. Mr. Gross seems to be of the opinion that... Continue Reading

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June 8, 2017 |

Plenty of Reasons to Keep Gold in your Portfolio

back to zero

With stocks making fresh all-time highs and economic optimism seeing a large increase in recent months, some investors may be questioning the value of hard assets like physical gold. But make no mistake, there are just as many reasons right now to hold gold as ever before. Despite the potential for further interest rate hikes from the Fed, gold has a number of issues that could not only keep it well-supported but could also potentially fuel a significant rally from current levels. Weak economic data... Continue Reading

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May 31, 2017 |

Is Gold Setting up for a Significant Move Higher?

Rally

Although the gold market may be seeing some weakness to begin the new trading week, the yellow metal is likely just seeing some profit taking after prices hit a one month high. We have seen this song and dance before, where gold sees some moderate selling ahead of an interest rate hike only to move higher following the hike. We expect this time around to be no different, as the Fed appears ready to pull the trigger on another rate hike in mid-June. The gold... Continue Reading

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May 29, 2017 |

Will the Consumer Sink the Ship?

It’s no secret that first quarter growth was lousy. Many analysts, however, see the economy bouncing back in the second quarter. If the Fed plans to stay on its current course of rate hikes (which it appears to be doing), the central bank must also assume that economic activity will be stronger in Q2. What if these assumptions prove to be false? Q1 GDP came in at a skinny rate of just .7%, and estimates appear to be looking for growth of around 2.5% in... Continue Reading

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May 25, 2017 |

Who to Believe: Stocks or Bonds?

As the benchmark S&P 500 stock index flirts with recent all-time highs once again, another market is making a run higher as well-the bond market. Although stocks have a tendency to dominate the headlines and financial media, the bond market dwarfs the equities market in size. While stock investors have been able to shrug off numerous potential geopolitical issues and some weakness in economic data, bond investors appear to be of a different opinion. In fact, the bond market appears to be signaling potential trouble... Continue Reading

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May 17, 2017 |

Just another Reason to Own Gold

North Korea launched another missile over the weekend, in a defiant act that could potentially bring the U.S. and the nation one step closer to armed conflict. More on that later… Also over the weekend, an unprecedented cyberattack took place that hit over 100,000 organizations in over 150 countries. The “ransomware” attack is still spreading today, as people return to work after the weekend and are logging back onto systems. This attack got started on Friday, and it is believed to be the largest online... Continue Reading

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May 17, 2017 |

Could President Trump be the Greatest Thing Going for Gold Right Now?

Chaos is defined by Dictionary.com as “a state of utter confusion or disorder; a total lack of organization or order.” Chaos could be one word used to describe what is being seen coming out of the highest office in the land. Chaos could be used to describe the seemingly increasing whirlwind of bad publicity and disorganization that it taking place right now within the highest levels of the U.S. Government. And some investors are paying attention… Both gold and silver are higher today as the... Continue Reading

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May 15, 2017 |

Will a Constitutional Crisis Be the Next Major Catalyst for Higher Gold?

It seems as if there are few-if any-dull moments since President Donald Trump took office in January. When it became clear that Trump was going to be elected the 45th President of the United States, stocks rallied, bonds tumbled and gold got clobbered. Gold rebounded, however, and has seen a nice run in the last couple months despite some recent selling in the market. Some might argue that the yellow metal could be lacking any fresh, bullish catalyst to attract fresh buying interest. Some might... Continue Reading

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May 11, 2017 |

Being Led to Slaughter?

Stock markets have been back on the offensive in recent action, and could be poised for a fresh leg higher into new all-time high territory. With the S&P500 trading just shy of the 2400 level and the Nasdaq trading over 6100, you have to wonder just how high markets could get before the bottom falls out. Trading has been slow and quiet, and volatility has remained very elusive. In fact, stock market volatility as measured by the CBOE’s VIX is currently at the lowest level... Continue Reading

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