Inflation & Gold, the Link Between the Elements

Inflation & Gold, the Link Between the Elements

Inflation & Gold, the Link Between the Elements $GLD The Big Q: On fueled inflation will Gold’s price soar? The Big A: The recent US NFPs report showed that wages had jumped 2.9% in January on an annual basis. It was the best since Y 2009, which awakened investor fears of inflation. That’s why investors awaited Wednesday’s data on […]

US Stocks Overcome Early Weakness Finishing in the Green

US Stocks Overcome Early Weakness Finishing in the Green

US Stocks Overcome Early Weakness Finishing in the Green $DIA, $SPY, $QQQ, $VXX Tuesday, US stocks overcame early weakness driving the major indices North for the 3rd session running. Fully, 9 of the 11 S&P 500 sectors finished in the Green, with financials (+0.5%), consumer discretionary (+0.5%), and real estate (+0.6%) being the Top performers. […]

Americans Filing for Unemployment Benefits at 45 yr Lows

Americans Filing for Unemployment Benefits at 45 yr Lows

Americans Filing for Unemployment Benefits at 45 yr Lows The number of Americans filing for unemployment benefits unexpectedly fell last week, dropping to its lowest level in almost 45 years as the labor market tightened further, driving expectations of faster wage growth this year. Initial claims for state unemployment benefits decreased 9,000 to a seasonally […]

Fed: US Stock Market Outlook Unchanged in Growing Economy

Fed: US Stock Market Outlook Unchanged in Growing Economy

Fed: US Stock Market Outlook Unchanged in Growing Economy $DIA, $SPY, $QQQ, $VXX Fed officials played down recent volatility in global stock markets, sounding as resolved to push ahead with gradual increases in interest rates as before the pullback. “Having a bump like this has virtually no consequence in my view of the economic outlook,” […]

DJIA Pullback Linked to Bond Market Not DC Disclosures

DJIA Pullback Linked to Bond Market Not DC Disclosures

DJIA Pullback Linked to Bond Market Not DC Disclosures $DJIA Last week’s US stock market pullback related to movements in the bond market, and not to the release of a GOP House Intel memo that accuses FBI and DOJ investigators of anti-Trump bias, that has indicated President Trump in the Russia probe.  President Trump’s position […]

Big Banks See Trump Tax Reform Benefits, Will Pass Them on to Employees and Stakeholders

Big Banks See Trump Tax Reform Benefits, Will Pass Them on to Employees and Stakeholders

Big Banks See Trump Tax Reform Benefits, Will Pass Them on to Employees and Stakeholders $JPM, $WFC, $BAC, $C, $GS JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) indicated Friday that they expect to see significant future benefits from the recently enacted GOP tax bill, through both lower taxes and increased business. The comments came as the  […]

Fed Doves Calling for ‘Slow’ Tightening

Fed Doves Calling for ‘Slow’ Tightening

Fed Doves Calling for ‘Slow’ Tightening The Fed should be patient as it raises interest rates this year, said Federal Reserve Bank of Atlanta President Raphael Bostic, adding his voice to other Dovish comments from officials concerned by low inflation and the risk of an inverted yield curve. “I am comfortable continuing with a slow […]

Seeing Inflation Almost Everywhere We Look, Growth Too!

Seeing Inflation Almost Everywhere We Look, Growth Too!

Seeing Inflation Almost Everywhere We Look, Growth Too! Investors with the idea that inflation will stay subdued should be concerned. Worldwide data have recently made clear that PPIs (producer-price indexes) have ticked up leading bond buyers to begin wagering that consumer inflation could be soon to follow, with US breakeven rates above 2% in here The […]

US Stocks Post Record Highs, as Trump Rally Extends

US Stocks Post Record Highs, as Trump Rally Extends

US Stocks Post Record Highs, as Trump Rally Extends $DIA, $SPY, $QQQ, $VXX  All 4 major US stock market indices finished at new all-time highs The S&P 500 Index surged past the 2,700-mark Wednesday and other major indexes hit record intra-day highs as technology stocks climbed on indications of strong economic growth in the US […]

US Growth is Expected to Stay Above the Forecast Rate

US Growth is Expected to Stay Above the Forecast Rate

US Growth is Expected to Stay Above the Forecast Rate $DIA, $SPY, $QQQ, $VXX Econ 101: no inflation no growth. Investors have been underestimating the importance of US economic growth for Fed policy, and giving too much relative emphasis to inflation and wage data that have tended to disappoint expectations, If it starts looking more […]

S&P 500, DJIA at Record Marks, as Bank Stocks Gain

S&P 500, DJIA at Record Marks, as Bank Stocks Gain

S&P 500, DJIA at Record Marks, as Bank Stocks Gain $DIA, $SPY, $QQQ, $VXX Tuesday, the S&P 500 and the DJIA marketrecord levels in early afternoon trading as Boeing (NYSE:BA)rose and bank stocks gained ahead of a near certain move by the Fed to raise interest rate. Losses in technology heavyweights, including Apple (NASDAQ:AAPL), and […]

Americans’ Economic Confidence Is Strong

Americans’ Economic Confidence Is Strong

Americans’ Economic Confidence Is Strong $DIA, $SPY, $BA Americans’ confidence in the economy remains strong heading into the final weeks of the Christmas Holiday shopping season. Gallup’s U.S. Economic Confidence Index registered +7 last week, similar to the prior week’s score of +9 and close to this year’s average of +6. Americans’ low expectations for how the […]

Economy Steams Ahead Under President Trump’s Deregulation Policy

Economy Steams Ahead Under President Trump’s Deregulation Policy

Economy Steams Ahead Under President Trump’s Deregulation Policy $DIA, $SPY, $QQQ, $VXX Fed Chairwoman Janet Yellen, in her final testimony to Congress as head of the central bank, described a steadily brightening picture for the US economy while downplaying the risks of financial instability. “The economic expansion is increasingly broad based across sectors as well […]

Gold Up for 3rd Day Running On US Inflation Data

Gold Up for 3rd Day Running On US Inflation Data

Gold Up for 3rd Day Running On US Inflation Data $GLD, $SLV, $MTAFF, $USD Gold prices rose for a 3rd day running Wednesday, and was flat Thursday, as USD weakened and US bond yields fell despite solid US economic data that reinforced expectations that the Fed will press ahead with increases to US interest rates, […]

Inflation is Back, Meaning Growth is Back

Inflation is Back, Meaning Growth is Back

Inflation is Back, Meaning Growth is Back $DIA, $SPY, $QQQ, $VXX Underlying US consumer prices increased in October on the back of a pickup in rents and healthcare costs, bolstering the view that a recent dis-inflationary trend worrying the Fed probably had ended. The rise in the consumer price index, excluding the volatile food and […]

US Consumer Sentiment Falls on Inflation, Rate-Hike Fears

US Consumer Sentiment Falls on Inflation, Rate-Hike Fears

US Consumer Sentiment Falls on Inflation, Rate-Hike Fears $DIA, $SPY, $QQQ, $VXX US Consumers remain optimistic about employment and the economy. US consumer sentiment in fell on expectations that inflation and interest rates will rise, according to a University of Michigan report Friday. Highlights of Michigan Sentiment Indicator (November, preliminary) Sentiment index dropped to 97.8 (est. 100.8) […]

Bitcoin Surges Past $5,000

Bitcoin Surges Past $5,000

Bitcoin Surges Past $5,000 $BTCUSD $JPM, $GS, $GOOGL Bitcoin’s surge has divided the financial community between those convinced it is a bubble on the verge of popping. Questions being asked on Wall Street and Main Street about speculation on Bitcoin after the digital currency breached 5,000 for the 1st time, pushing this year’s gains to more […]

Things Change When Bond Yields Begin to Rise

Things Change When Bond Yields Begin to Rise

Things Change When Bond Yields Begin to Rise $DIA, $GLD, $SLV Last week the DJIA closed at new all-time highs, with Friday’s close being just a whisker from making it 5 days in a row. Looking at the daily closes for the Dow Jones (Blue Plot below) with its 52Wk High Line (Green Plot), since […]

Fed May Have Misjudged Low Inflation

Fed May Have Misjudged Low Inflation

Fed May Have Misjudged Low Inflation $DIA, $SPY, $QQQ, $VXX Expect President Trump to fill the Fed vacancies with pro-growth advocates. Econ 101, No inflation, No growth. Tuesday, the expected outgoing Federal Reserve Chairwoman Janet Yellen acknowledged that the central bank is puzzled by the persistence of unusually low inflation and that it might have […]

FOMC Schedules Asset “Normalization” as Expected

FOMC Schedules Asset “Normalization” as Expected

FOMC Schedules Asset “Normalization” as Expected Federal Reserve officials set an October start for shrinking their $4.5-T of assets, moving to unwind a pillar of their crisis-era support for the economy. FOMC forecasts 1 more interest-rate hike later this year, saying storm damage will have a temporary impact on the economy. “Hurricanes Harvey, Irma and […]

US Stock Indexes Mark New Record Highs, Financials Lead

US Stock Indexes Mark New Record Highs, Financials Lead

US Stock Indexes Mark New Record Highs, Financials Lead $DIA, $SPY, $QQQ, $VXX The major US stock market indexes are trading at record marks driven by gains in financial, technology and industrial stocks, with focus on the FOMC’s policy meet Tuesday and Wednesday, as The Trump Rally extends. Shares of the major banks, including Bank […]

US President Trump Poised to Change Fed Leadership +

US President Trump Poised to Change Fed Leadership +

US President Trump Poised to Change Fed Leadership + $GLD,$SLV, $PPLT, $USD Every US President gets the chance to influence Fed policy through nominations to the central bank’s Board of Governors. But, most often, that chance is limited to a small number of nominations, 3 max, including a nomination for Chairperson. But President Trump is […]

This Week’s FOMC Meet May Trigger Stock Rotation

This Week’s FOMC Meet May Trigger Stock Rotation

This Week’s FOMC Meet May Trigger Stock Rotation $SPY US stock investors could rotate out of high-yielding sectors and into stocks of banks, which would benefit from the next leg up in interest rates, after the FOMC’s policy-setting meeting wraps up Wednesday. If the FOMC gives a nod to rising inflation or focuses its trimmed-down […]

US Job Openings (JOLTS)Hit Record High, Qualified Workers Scarce

US Job Openings (JOLTS)Hit Record High, Qualified Workers Scarce

US Job Openings (JOLTS)Hit Record High, Qualified Workers Scarce $DIA, $SPY, $QQQ, $VXX The Trump Rally extends, US stocks mark record high, again, led by financials, Apple sags. US  job openings aka JOLTS, rose to a record high in July, suggesting a slowdown in job growth in August was an aberration and that the labor market […]

Rebuilding After Hurricanes Will Boost US Economy

Rebuilding After Hurricanes Will Boost US Economy

Rebuilding After Hurricanes Will Boost US Economy $DIA, $SPY, $QQQ, $VXX Federal Reserve Bank of New York President William Dudley said back-to-back hurricanes in Q-3 will  lead to increased economic activity over the long run despite any tragic consequences. The storms could (will) influence the timing of the next interest-rate increase, although above-trend growth does […]

US Economic Growth Picking Up, Inflation Muted

US Economic Growth Picking Up, Inflation Muted

US Economic Growth Picking Up, Inflation Muted $DIA, $SPY, $QQQ, $VXX The US economy expanded at a moderate pace in July through mid-August, but signs of an acceleration in inflation are muted, the latest survey conducted by the Fed showed Wednesday. “Prices rose modestly overall across the country,” the central bank said in its Beige […]

Gold Marks a Fresh 2017 High, Stocks Drop on NKorea Tensions

Gold Marks a Fresh 2017 High, Stocks Drop on NKorea Tensions

Gold Marks a Fresh 2017 High, Stocks Drop on NKorea Tensions $GLD NKorea launches or threatens to launch a missile, Gold rises, stocks fall, things calm down and stocks make up their losses, what has been a recurring story YTD. The Big Q: Is it different this time? The Big A: After NKorea said it […]

US Consumer Spending Up, Inflation Down, USD Falling

US Consumer Spending Up, Inflation Down, USD Falling

US Consumer Spending Up, Inflation Down, USD Falling $DIA, $SPY, $QQQ, $VXX US consumer spending rose a bit in July and annual inflation increased at its slowest pace since late Y 2015, diminishing expectations of a Fed interest rate hike in December. Inflation remains low even as the labor market is near full employment, a […]

Gold Has Broken Through the Psych Resistance at 1300 oz, Next?

Gold Has Broken Through the Psych Resistance at 1300 oz, Next?

Gold Has Broken Through the Psych Resistance at $1300 oz, Next? $GLD Gold has broken the 1,300 0z  the Psych resistance mark that has held since October 2016. Today the metal trades at 1,324. This rise is being attributed in part to a weakened USD after the head of the ECB refrained from talking down […]

Yellen and Draghi Open Jackson Hole Symposium Friday

Yellen and Draghi Open Jackson Hole Symposium Friday

Yellen and Draghi Open Jackson Hole Symposium Friday $USD, $DXY, $EUR The Jackson Hole Symposium is this week’s most anticipated event, in part due to a severe lack of other newsworthy market stories but also because two very important central bankers are scheduled to appear. The Fed and the ECB are not only 2 of […]

The Story of Obama’s Ransom Payment to Iran Gets Worse

The Story of Obama’s Ransom Payment to Iran Gets Worse

The Story of Obama’s Ransom Payment to Iran Gets Worse America paid Iran $1.7-B in cash, hard money that by US law were not to be released unless and until Iran paid what it owed to American victims of its terrorism. On the morning of January 17, 2016, US President Obama declared that this was […]

The Trump Rally Extends, DJIA Marks Its 8th Straight Record High

The Trump Rally Extends, DJIA Marks Its 8th Straight Record High

The Trump Rally Extends, DJIA Marks Its 8th Straight Record High $DIA, $SPY, $QQQ, $VXX The DJIA (Dow Jones Industrial Average) ended on its 8th straight record high Friday, with gains in banks after the NFPs data showed US employers hired more workers than expected in July. The strong jobs report may help clear the […]

Think Portfolio Insurance When Buying Gold in Here

Think Portfolio Insurance When Buying Gold in Here

Think Portfolio Insurance When Buying Gold in Here $GLD, $USD Gold (NYSEArca:GLD) is ranged within 1,190 and 1250 oz short term as the metal tracks US real interest rates. “We’re not saying we have a Bullish bias; we’re not saying we have a bearish bias,” siad executive director for commodities and foreign exchange at UBS […]

Central Banks Turn “Hawkish”, JPY Carry Trade Emerges

Central Banks Turn “Hawkish”, JPY Carry Trade Emerges

Central Banks Turn “Hawkish”, JPY Carry Trade Emerges $GBP, $USD, $EUR, $JPY, $CAD Cable, Loonie and EUR all rose last week on Hawkish comments from central bankers. The BOE Governor Mark Carney said it is not the time of rate hike yet. Then indicated the BOE MPC will start debating raising interest rate in the […]

Fed Sees Lower Interest Rated for Longer

Fed Sees Lower Interest Rated for Longer

Fed Sees Lower Interest Rated for Longer After last week, the FOMC raised the fed-funds rates by a quarter of a point and Fed Chair Janet Yellen, during the press conference that followed the rate decision pointed to the relentless debate, which concerns practically all central bankers of the leading economies in the world, whether […]

The Solid Reasons for Gold in an Investment Portfolio

The Solid Reasons for Gold in an Investment Portfolio

The Solid Reasons for Gold in an Investment Portfolio $GLD,  $SLV,  $ABX,  $EXCFF,  $SLW, $SPY Gold got crushed in The Trump Election rally post election, but a little over 5 months into Y 2017, the yellow metal is up 10.5%—making it one of the best-performing assets of the year so far. While the outlook for the […]

US Home Construction Stalled, Continuing Growth in Question

US Home Construction Stalled, Continuing Growth in Question

US Home Construction Stalled, Continuing Growth in Question $DIA,  $SPY,  $QQQ,  $VXX May Housing Starts and June Preliminary Consumer Confidence  Starts: -5.5%; 1-family: -3.9% Permits: -4.9%; 1-Family: -1.9% Consumer Confidence: down 2.6 points The downward trend in home construction does not augur well for growth in 2-H Business leaders and owners, whether they are involved […]

The Search is On for a New Fed Chief

The Search is On for a New Fed Chief

The Search is On for a New Fed Chief $DIA, $SPY, $QQQ, $VXX President Trump’s top economic advisor, Gary Cohn to lead the search for the next Fed chief. President Donald Trump’s relationship with the Fed has been friendly to date, that does not mean Chairwoman Janet Yellen is likely to stay on. Some market […]

Comey’s Testimony: “Still Born”, DJIA Marks Record Highs

Comey’s Testimony: “Still Born”, DJIA Marks Record Highs

Comey’s Testimony: “Still Born”, DJIA Marks Record Highs $DIA, $SPY, $QQQ, $VXX US stocks were higher in early afternoon trading Thursday after sacked FBI Director James Comey’s testimony was seen by investors as yielding nothing that could affect Donald Trump’s Presidency. The DJIA earlier hit an intra-day record and continued to climb and settled back […]

European Central Bank Facing Continuing Challenges

European Central Bank Facing Continuing Challenges

European Central Bank Facing Continuing Challenges The European Central Bank (ECB) facing continuing challenges when its Governing Council meets Thursday in Estonia. The Eurozone’s central bank is likely to err on the side of prudence by avoiding any notable reduction in monetary stimulus, even though the arguments points to a different policy direction. The argument […]

President Trump Will Nominate 2 “Hawks” to Fed Board

President Trump Will Nominate 2 “Hawks” to Fed Board

President Trump Will Nominate 2 “Hawks” to Fed Board US President Donald Trump’s picks for the 2 open spots on the Fed Board of Governors may push for tighter monetary policy if they receive the Senate confirmation needed to join the interest rate-setting panel. President Trump will nominate Carnegie Mellon University professor Marvin Goodfriend, 66 […]

Soft US Inflation May Warrant Interest Rate “Rethink”

Soft US Inflation May Warrant Interest Rate “Rethink”

Soft US Inflation May Warrant Interest Rate “Rethink” $DIA,  $SPY,  $QQQ,  $VXX Tuesday, Fed Governor Lael Brainard said soft US inflation may cause her to reassess the path forward for monetary policy should it linger, even as the global economic outlook brightens and US growth looks poised to rebound. “If the soft inflation data persist, […]

Aggressive Fed Could Upset Markets, Gold is the Hedge

Aggressive Fed Could Upset Markets, Gold is the Hedge

Aggressive Fed Could Upset Markets, Gold is the Hedge $DIA, $SPY, $QQQ, $VXX, $GLD, $SLV The mins from this month’s FOMC meeting outline an aggressive agenda that may upset financial markets in the months ahead. Fed officials said the plan is cautious, and stocks rallied on the news. The Big Q: How safe should participants […]

ECB’s Draghi Cautiously Upbeat on Eurozone

ECB’s Draghi Cautiously Upbeat on Eurozone

ECB’s Draghi Cautiously Upbeat on Eurozone The Head of the European Central Bank (ECB) says that risks to the strengthening economy of the 19-country Eurozone have fallen insisting it is too early to declare victory and start withdrawing stimulus measures. Mario Draghi said in remarks delivered Wednesday in the Dutch Parliament that recent data confirm […]

Market Finished at Record Highs, as The Trump Rally Extends

Market Finished at Record Highs, as The Trump Rally Extends

Market Finished at Record Highs, as The Trump Rally Extends $DIA, $SPY, $QQQ, $VXX Highlights of April’s US Employment Report The unemployment rate unexpectedly dropped to 4.4%, the lowest since May 2007, the US Labor Department data showed Friday The Spare capacity in the labor market is quickly disappearing, indicating that lackluster wage growth should […]

VIX (NYSEArca:VXX) Marks 10 yr Lows

VIX (NYSEArca:VXX) Marks 10 yr Lows

VIX (NYSEArca:VXX) Marks 10 yr Lows $VXX, $AUDUSD, $JPY, $EUR, $GBP After returning from the long May Day weekend, equity investors look undecided on whether to be Bullish or Bearish. Stocks across Asian markets were mixed Tuesday despite the CBOE Volatility Index (VIX), Wall Street’s ‘Fear Factor’  hitting its lowest marks in a decade. The low volatility was reflected […]

US President Trump Not “Talking Down” the USD

US President Trump Not “Talking Down” the USD

US President Trump Not “Talking Down” the USD $DIA, $SPY, $QQQ, $VXX US President Donald Trump is “absolutely not” trying to talk down the strength of the USD, Treasury Secretary Steven Mnuchin was quoted as saying Wednesday. Trump said last week in an interview with the WS-J that the dollar was “getting too strong,” and […]

Bullish Gold: A Case Study for Gold’s Price Run to $2,500 oz

Bullish Gold: A Case Study for Gold’s Price Run to $2,500 oz

Bullish Gold: A Case Study for Gold’s Price Run to $2,500 oz $GLD, $GDX, $SLW, $EXCFF Those who read this column know that I have been Bullish Gold for several months after noting the end of the Bear cycle in the precious Yellow metal and new forces that will contribute to an even stronger advance […]

Expect The Congress to Embrace President Trump’s Growth Plan

Expect The Congress to Embrace President Trump’s Growth Plan

Expect The Congress to Embrace President Trump’s Growth Plan $DIA, $SPY, $QQQ, $VXX, $GLD, $SLV, $USO Friday’s monthly NFPs market moving data release attracted much less attention than in the past. The Key jobs report reflects on the health of the US labor market in March, and it is important for assessing the underlying strength […]

Fed Minutes: FOMC Eyes Change to Debt Holdings Policy Ahead

Fed Minutes: FOMC Eyes Change to Debt Holdings Policy Ahead

Fed Minutes: FOMC Eyes Change to Debt Holdings Policy Ahead $DIA, $SPY, $QQQ, $VXX Most FOMC policymakers think the Fed should take steps to begin trimming its $4.5-T balance sheet later this year as long as the economic data holds up, minutes from their March meeting revealed. Uncertainty is substantial, the Fed said, comment on […]

Dubai: Gold Hits 2-Week High as USD Falls

Dubai: Gold Hits 2-Week High as USD Falls

Dubai: Gold Hits 2-Week High as USD Falls  $GLD Spot Gold price forecast to range between 1,228 and 1,247 oz Gold jewelry prices in Dubai spiked Monday, as the USD fell in the aftermath of the recent Fed dovish interest rate adjustment. Bullion retailed Monday by as much as Dh10/gram when compared to the prices […]

Economic Electrical Power Consumption…

Economic Electrical Power Consumption…

Economic Electrical Power (EP) Consumption… US Historical Review: 1929-2017 $DIA, $SPY, $GLD, $SLV Last Friday promised some excitement for this week; what with the much anticipated interest rate increase by the FOMC and the Federal Government hitting its debt ceiling on Wednesday the 15th. Friday evening, it was all much to do about nothing, with […]

Inflation Back, Deflation Demons ‘Dead’, Growth Ahead

Inflation Back, Deflation Demons ‘Dead’, Growth Ahead

Inflation Back, Deflation Demons ‘Dead’, Growth Ahead $DIA, $SPY, $QQQ, $VXX The “Demons of Deflation” are in the dust-bin on a uptick in price pressures globally, prompting investors to seek protection in inflation-protected bonds. A year ago, it was deflation, falling prices that restrain consumer spending and economic growth that plagued investors and central banks, […]

FOMC Raised Rates, Yellen Not Worried About Downside Risks

FOMC Raised Rates, Yellen Not Worried About Downside Risks

FOMC Raised Rates, Yellen Not Worried About Downside Risks The FOMC raised interest rates Wednesday, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank’s target. The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75 percent […]

Bullish Investors Positive About President Trump’s Policies

Bullish Investors Positive About President Trump’s Policies

Bullish Investors Positive About President Trump’s Policies $SPY Stock-market investors worldwide, especially the Bullish ones who have been proven right since 9 November have been richly rewarded, look to be in a gradual transition in their operating outlook. Their environment is moving away from comfortable reliance on central banks that are able and willing to […]

Here is the Proof, Rising Interest Rates are Good for Gold

Here is the Proof, Rising Interest Rates are Good for Gold

Here is the Proof, Rising Interest Rates are Good for Gold $GLD,  $USD, $XAUUSD You will recall that when the Fed raised interest rates in December, and the publicly spoke its plan to do so 3X more times in Y 2017, the conventional wisdom suggested gold should fall. The theory: Gold is a non-yielding asset, […]

Investors Still See Gold as Safe Haven & Inflation Hedge

Investors Still See Gold as Safe Haven & Inflation Hedge

Investors Still See Gold as Safe Haven & Inflation Hedge $GLD In a counter intuitive move, the precious Yellow metal is advancing as Fed threatens to tighten, ETF investors have turned buyers as Trump Rally extends. Savvy market analysts know very well that works for Gold in practice does not work in theory very often, in […]

Trump Rally Extends on Economic Growth, Consumer Prices Up

Trump Rally Extends on Economic Growth, Consumer Prices Up

Trump Rally Extends on Economic Growth, Consumer Prices Up $DIA, $SPY, $QQQ, $VXX US stock market indexes finish at record highs for 5th day running US consumer prices recorded their biggest increase in nearly  4 years in January as households paid more for gasoline and other goods, suggesting inflation picking up. The US Labor Department said […]

The Trump Rally Extends, S&P 500 Posts Another Record High

The Trump Rally Extends, S&P 500 Posts Another Record High

The Trump Rally Extends, S&P 500 Posts Another Record High $DIA, $SPY, $QQQ, $VXX Along with the S&P, the DJIA posted its 4th straight record close, the NAS Comp closed at a high for a sixth day running. MSCI’s all-country world index edged up 0.08%. Europe’s broad FTSEurofirst 300 index slipped 0.04%to snap a 5-session […]

The Fed is Breathing Life into Gold Bulls

The Fed is Breathing Life into Gold Bulls

The Fed is Breathing Life into Gold Bulls $GLD Thursday, volume and prices spiked on call options giving holders the right to buy Gold at higher prices. Wednesday, investors poured $413-M into SPDR Gold Shares (NYSEArca:GLD), the largest ETF backed by the metal, recouping almost 50% of the money that exited in January. The Fed […]

US Pending Home Sale Up +1.6% in December

US Pending Home Sale Up +1.6% in December

US Pending Home Sale Up +1.6% in December $DIA, $SPY, $QQQ, $VXX More Americans signed contracts to buy homes in December. The increase possibly reflects more people scrambling to purchase homes as mortgage rates have been rising and increasing the costs of ownership. The National Association of Realtors (NAR) said Monday that its seasonally adjusted […]

Janet Yellen, “Makes sense to raise rates gradually.”

Janet Yellen, “Makes sense to raise rates gradually.”

Janet Yellen, “Makes sense to raise rates gradually.” $DIA, $SPY, $QQQ, $VXX With the US economy close to full employment and inflation headed toward the Fed’s 2% goal, it “makes sense” for the US central bank to gradually lift interest rates, Fed Chairwoman Janet Yellen said Wednesday afternoon. “Waiting too long to begin moving toward […]

Stock Market Participants “Savvy” to Risks Under the Surface of a Rise

Stock Market Participants “Savvy” to Risks Under the Surface of a Rise

Stock Market Participants “Savvy” to Risks Under the Surface of a Rise $DIA, $SPY, $QQQ, $VXX Yale economist Robert Shiller admits that he does not know “what to make” of surging US stocks now Thursday he offer some of his sage advice to savvy investors: “Markets are inherently filled with tricks and traps, be careful.” […]

Donald Trump in 2017, Different Than Ronald Reagan in 1981

Donald Trump in 2017, Different Than Ronald Reagan in 1981

Donald Trump in 2017, Different Than Ronald Reagan in 1981 $DIA, $GLD, $SLV Since the November 8th Presidential election, the NYSE has seen 17 trading sessions, with the DJIA closing at new all-time highs in 9 of them.  I cannot argue with success, but seeing the stock market do so well after an election does nothing […]

Big Investors Back Off Bonds Fueling This Bull Market

Big Investors Back Off Bonds Fueling This Bull Market

Big Investors Back Off Bonds Fueling This Bull Market $SPY US voters’ decision to elect Donald Trump US President may extend the life of this 7-year Bull Market in US stocks. That is the consensus of prominent investors attending this week’s Reuters Global Investment Outlook Summit. Expectations that Donald Trump will successfully engineer massive new […]

Yellen, “Fed could raise US interest rates relatively soon.”

Yellen, “Fed could raise US interest rates relatively soon.”

Yellen, “Fed could raise US interest rates relatively soon.” The Fed could raise US interest rates “relatively soon,” Fed Chairwoman Janet Yellen said Thursday as data showing a surge in housing starts and uptick in inflation underscored her upbeat assessment of where the country stands. In Ms. Yellen’s 1st remarks since the election of Donald […]

President-elect Donald Trump Powers US Stocks

President-elect Donald Trump Powers US Stocks

President-elect Donald Trump Powers US Stocks $DIA, $SPY, $QQQ, $VXX President-elect Donald Trump looks to be very good for the US stock market, crushing the theories of the naysayers. Asian stock markets tumbled shortly after Trump overtook Hillary Clinton in the presidential electoral vote count early Wednesday. Then signals pointed to a deep dive for […]

The Outlook for American Businesses is Grim

The Outlook for American Businesses is Grim

The Outlook for American Businesses is Grim $DIA, $SPY, $QQQ, $VXX The Big Q: Are investors in denial about grim outlook for American businesses? That’s the question Société Générale’s Andrew Lapthorne, global head of quantitative strategy, posed to his bank’s clients in a note Friday. “Asset valuations are extreme; returns are poor, the probability of […]

The Anemic Recovery from Great Recession Surprise Economists

The Anemic Recovery from Great Recession Surprise Economists

The Anemic Recovery from Great Recession Surprise Economists $DIA, $SPY, $QQQ, $VXX Friday, the Federal Reserve Chairwoman Janet Yellen said that the slow recovery from the Great Recession has surprised economists, confounding long-held beliefs about growth and inflation. Speaking to an economic conference at the Federal Reserve Bank of Boston,  Ms. Yellen did not address […]

Economic Watch Shows China’s Economy is Stable

Economic Watch Shows China’s Economy is Stable

Economic Watch Shows China’s Economy is Stable China’s rising M-M inflation and narrower decline in producer prices in August have provided fresh evidence of a steadying economy, experts said. China’s consumer price index (CPI), a main gauge of inflation, rose 0.1% in August on a M-M basis, the National Bureau of Statistics (NBS) announced last […]

QE to Infinity: Central Banking’s Manifest Destiny

QE to Infinity: Central Banking’s Manifest Destiny

QE to Infinity: Central Banking’s Manifest Destiny $GLD, $SLV, $GDX I’m not surprised; the week following my article illustrating why I believed the gold and silver miners are “historic buys at today’s prices”; gold, silver and their miners get whacked to their lows of the current, so far 8th week correction. But last week I also […]

Gold Outlook: Do Not See Fed Interest Rate Increase in 2016

Gold Outlook: Do Not See Fed Interest Rate Increase in 2016

Gold Outlook: Do Not See Fed Interest Rate Increase in 2016 $GLD A US Fed interest-rate increase this year should not shake investors’ faith in Gold, according to Australia’s 2nd-largest producer. Bullion is trading near the lowest level in more than 3 months. Prices fell on speculative worries that central banks are ready to curb […]

Stock Markets Have Turned Into a Vegas/Macau/Monte Carlo Casino

Stock Markets Have Turned Into a Vegas/Macau/Monte Carlo Casino

Stock Markets Have Turned Into a Vegas/Macau/Monte Carlo Casino Global central bankers have turned world financial markets into a casino, thanks to their unprecedented monetary policies, Bill Gross warned Tuesday. “Our financial markets have become a Vegas/Macau/Monte Carlo casino, wagering that an unlimited supply of credit generated by central banks can successfully reflate global economies […]