Investors Imagine Negative US Interest Rates

Investors Imagine Negative US Interest Rates

$DIA $SPY $QQQ $RUTX Negative interest rates in the US were once taboo. The C-19 coronavirus chaos changed that, and has forced investors to give serious thought to the implications of such a drastic policy shift. Rate options, which gauge monetary policy expectations, Monday implied a 23% probability that the Key federal funds rate will […]

The Economics of Negative Interest Rates Simplified

The Economics of Negative Interest Rates Simplified

Here we assess whether this is a sustainable form of monetary policy for central banks in some countries at risk of a deflationary depression. A negative interest rate policy happens when a country’s central bank lowers the nominal monetary policy interest rate below Zero. In other words, commercial banks must pay to lodge some of […]

Mutual Fund Giants Unfazed by “Rich Guys” Warning on Stocks

Mutual Fund Giants Unfazed by “Rich Guys” Warning on Stocks

$DIA $SPY $QQQ Some Wall Street heavyweights who President Trump dubbed ‘rich guys’ last week may sound alarmed about stocks, but some of the world’s biggest investors are holding on or boosting their holdings. Money managers and strategists at Capital Group, Franklin Templeton and BlackRock Inc., which together oversee about $8.8-T, say stocks remain attractive […]

On the Last Day of April Investors Took Some Profits

On the Last Day of April Investors Took Some Profits

$DIA $SPY $QQQ $RUTX $USO $USD $GLD $VXX Thursday, the market opened in the Red as some profit-taking into April’s month-end happened.  The market has been climbing that wall of worry the last few sessions improving the charts in all 3 major US stock market indexes, and thus turning all Key technical indicators Very Bullish. […]

Gold Will Rise in This Economic Atmosphere, Government Bonds Should be Disposed

Gold Will Rise in This Economic Atmosphere, Government Bonds Should be Disposed

$GLD, $XAU, $SPY, $USD Bridgewater Associates’ Ray Dalio, founder of the world’s largest hedge fund, said investors would be “crazy” to hold government bonds now because of money printing by central banks to rescue the global economy. “This period, like the 1930-45 period, is a period in which I think you’d be pretty crazy to […]

Commentary: Paul Ebeling on Wall Street, This Bull Market Vs Coronavirus

Commentary: Paul Ebeling on Wall Street, This Bull Market Vs Coronavirus

$DIA $SPY $QQQ $RUTX $VXX Just In: Goldman Says US Stocks Have Likely Bottomed Unprecedented policy support and a flattening viral curve have “dramatically” cut risks, the bank said early Monday in a note. Despite the COVID-19 coronavirus, ‘new’ Bull market can run Last week was a shortened week, here is how it played US […]

Communist China’s ‘Day of Reckoning’ Looms

Communist China’s ‘Day of Reckoning’ Looms

The Chinese Communist regime is going to face “a day of reckoning” for the global coronavirus pandemic, not only killed Americans but damaging its economy. The Big Q that is being debated in Washington now about holding China financially responsible for America’s health crisis and corresponding economic impact. When we find evidence and we will find […]

Today’s Action Confirms Buy Signal for Stocks

Today’s Action Confirms Buy Signal for Stocks

$DIA $SPY $QQQ $RUTX $VXX Treasury Secretary Steven Mnuchin went on national TV Wednesday morning to assure markets that the federal government’s stimulus package is being rolled out smoothly amid the economic distress caused by measures to slow the spread of the coronavirus. The US stock market rallied Wednesday, confirming the technical buy signals seen […]

Stock Market’s ‘Virus War’ Rout is Probably Past Its Worst

Stock Market’s ‘Virus War’ Rout is Probably Past Its Worst

$JPM $SPY Over the weekend, strategists at JPMorgan Chase & Co. (NYSE:JPM) concluded that most risk assets including stocks and credit have marked their low points in this Virus War frame that has gripped economies around the world. Conditions that JPMorgan had set for market stabilization and revival have largely been met, with recession-like pricing, […]

President Trump’s Fed has Brought the Global Financial System Back from the Edge

President Trump’s Fed has Brought the Global Financial System Back from the Edge

$ICE $USD $BAC $WFC This week Fed Chairman Powell set out to offer a explanation for the complicated steps he is taking to relieve dire stresses in the global financial system. “Many places in the capital markets, which support borrowing by households and businesses. I am talking about mortgages and car loans and things like […]

If You are Worried About Your Portfolio – Slow and Steady Always Wins

If You are Worried About Your Portfolio – Slow and Steady Always Wins

$DIA $SPY $QQQ $RUTX $USO $GLD Monday, the DJIA saw its worst decliner since Y 2008 in response to news of COVID-19 and the Saudi/Russia Crude Oil price war, and the ride the stock market/s have taken in the last 2 wks has left lot of investors with stomach aches. If you have a 401(k) […]

Global Markets and Commodities

Global Markets and Commodities

$GLD $XAU $OIL $USO $USD $MSCI Crude Oil and global equity markets bounced back after the Monday’s losses as the world’s biggest economies moved to cushion the impact of the coronavirus, but stock gains in Europe failed to hold as investors are still cautious. The price of Brent Crude Oil climbed 10% on hopes a […]

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $RUTX, $VXX, $GLD, $XAU, $USO Last Week Stock action has improved with low to high gains and the stocks that stumbled Wednesday have showed stronger action. There has been excellent action in response to good earnings both during the trading session and after-hours. Bonds rallied, gold has risen and Crude Oil has […]

Goldie Says Stocks Can Go Higher

Goldie Says Stocks Can Go Higher

$DIA, $SPY, $QQQ, $RUTX, $VXX Some on Wall Street see a sharp reversal hitting this year’s stock market rally now that fast-money quants have ramped up their speculative bets. But the real money has the potential to come in and lead even if these systematic players slow down. Tepid inflows into mutual funds and exchange-traded […]

2020: Buy Gold, Bet on Emerging Markets

2020: Buy Gold, Bet on Emerging Markets

$XAU $GLD “Gold is a place you want to be. I think that it’s partly because its inversely correlated with interest rates. But it’s also an insurance policy when things go wrong,” David Rosenberg said. “There’s no such thing as a no-brainer, but this is close.” Gold is off to a terrific start this year […]

2020: USA, No Recession, Steady Economy, Low Inflation

2020: USA, No Recession, Steady Economy, Low Inflation

$DIA $SPY $QQQ $RUTX $VXX US stocks will continue to rise this year on very little chance of a recession, and low inflation driving steady economic growth, with real GDP growing around 2.0%, and inflation remains below 2.0%. That is our outlook for Y 2020. We do not see a recession in this year’s US […]

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$SPY $SPX, $XAU, $USO, $USO For all the stress, worries and concerns about trade disputes, geopolitics and a slowing and overly indebted global economy, Y 2019 may be the best year investors have ever had. The numbers are staggering Global stocks have piled on more than $10-T, bonds have been on fire, Crude Oil has […]

Gold Prices on Pace to Mark Biggest Annual Gainer in 9 Yrs

Gold Prices on Pace to Mark Biggest Annual Gainer in 9 Yrs

$GLD, $XAU, $SLV, $XAG, $USD Gold prices look to end the year more than 15% higher, on track to post their biggest annual gainer in 9 years. “Gold has seen considerable safe haven buying from investors concerned over low and negative yields in the bond market and fearing a possible downturn in equities,” said the […]

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $RUTX, $VXX Am seeing earnings revival boosting stock rally in Y 2020 But 1st, this is what happened last week: The Federal Open Market Committee (FOMC) has held steady and is not going to raise rates in Y 2020. Chairman Powell is also open to bond purchases. The Consumer Price Index (CPI) […]

Laughter is Good Medicine

Laughter is Good Medicine

Anthropological research suggests laughter and humor are genetically built-in, and that humor, historically, has functioned as “a social glue.” The critical laughter trigger for most people is not necessarily a joke or funny movie, but rather another person Many studies support the notion that optimism has a beneficial influence on your health. The Big Q: What […]

Goldie’s Simple Answer to Clients: “Buy US Stocks 1st”

Goldie’s Simple Answer to Clients: “Buy US Stocks 1st”

$DIA, $SPY, $QQQ, $RUTX, $VXX S&P 500 finishes higher as value stocks outperform Goldman Sach’s Private Wealth Management team has a simple firm message for its wealthy clients: stick with US equities. “As we have gone through various crises, we have still told clients to stay invested and not get out of US equities, it’s […]

Contrarian Indicators Signaling “It is time to buy stocks”

Contrarian Indicators Signaling “It is time to buy stocks”

$SPY, $XAU, $BAC, $JPL, $USB All US financial markets are closed Monday, in observance of Labor Day. It may have taken $204-B of equity outflows this year, but the BofAML Bull & Bear Indicator is finally flagging a contrarian “buy signal,” its 1st since 3 January. Bank of America Merrill Lynch (NYSE:BAC) is Bullish on […]

President Trump Knows How to Deal, We Will Get China Trade Deal His Way

President Trump Knows How to Deal, We Will Get China Trade Deal His Way

Sunday on TV, White House trade adviser Peter Navarro said he is optimistic about a trade deal with China because doing business deals is President Donald Trump’s strong suit. In a network TV interview, Mr. Navarro said he is optimistic that the President will “do the right thing for America“in negotiating with China. “One thing […]

The Bull Run in Gold is Not Over, as the Market is Seeing a Natural Consolidation

The Bull Run in Gold is Not Over, as the Market is Seeing a Natural Consolidation

$XAU, $GLD, $USD Money manager, Jeffrey Gundlach predicts that gold’s price will continue North along with the run up in negative-yielding bonds. “At this point, I think the way to think about it is, as long as the volume of negative interest rate bonds outstanding increases, it’s quite likely that gold moves higher in a […]

Wall Street Fades into the Close, Options Expire with a Whimper

Wall Street Fades into the Close, Options Expire with a Whimper

$DIA, $SPY, $QQQ, $RUTX, $VXX FLASH: Fed’s Bullard: Rate Cut Will ‘Ratify’ What People Already Expect An interest rate cut may be necessary now, but that does not mean the Fed is on a path to dramatically lower rates, St. Louis Fed President James Bullard said Friday. Mr. Bullard, who argued unsuccessfully for such an […]

Survivor Guide “Buy Gold on Paradigm Shift in Global Markets”

Survivor Guide “Buy Gold on Paradigm Shift in Global Markets”

$DIA, $SPY, $QQQ, $RUTX, $XAU, $GLD, $VXX Billionaire Investment Guru, Ray Dalio thinks the current era of low interest rates and QE may be coming to an end, and his answer to a new market paradigm that could see escalating conflict between capitalists and socialists is simple, Buy Gold. “I believe that it would be […]

“Risk Assets Have Room to Run”

“Risk Assets Have Room to Run”

$SPY, $BLK In a report, the majority of BlackRock Inc.’s (NYSE:BLK) Top decision-makers had a simple conclusion after gathering in London last week: A supportive backdrop for risk assets probably has “room to run” for at least 12 more months. Senior leadership at the world’s largest asset manager cited easy monetary policies and few signs […]

President Trump Vs Fed, Gold Wins

President Trump Vs Fed, Gold Wins

$XAU, $GLD, $USD President Trump continues his relentless attacks against the Fed and their strong dollar Tuesday with his most recent Tweets: “This is because the Euro and other currencies are devalued against the dollar, putting US at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t […]

Market Extends Rally Off of Its Best Week in 2019

Market Extends Rally Off of Its Best Week in 2019

$DIA, $SPY, $SOX, Investors heavily exposed to US stocks just had their best week YTD. But the rebound has raised several questions related to market behavior, policy and economics. How they are answered will prove consequential not only for market prospects but for the global economy. And, notwithstanding the lack of decisive answers at this stage, […]

Tesla’s (NASDAQ:TSLA) Stock at 3 Yr Lows

Tesla’s (NASDAQ:TSLA) Stock at 3 Yr Lows

$TSLA, FCAU, GM FLASH: Tesla’s (NASDAQ:TSLA) stock is at 3 year lows Bernstein analyst Max Warburton says that while there may be some tepid interest in Tesla’s assets, it’s unlikely a European carmaker would buy the company. “What assets are attractive? Tesla no longer has genuinely differentiated tech. The production plant is sub-par. The Gigafactory […]

Fact: Bitcoin (BTC) Almost Nobody Uses It

Fact: Bitcoin (BTC) Almost Nobody Uses It

$BTC, $BTCUSD FLASH: Bitcoin (BTC) has a major problem that few are talking about due the renewed exuberance of the recent rally. That problem is that hardly anyone uses the world’s largest cryptocurrency for anything beyond speculation. Data from New York-based blockchain researcher Chainalysis Inc. show that only 1.3% of economic transactions came from merchants […]

Buy ‘MAGA Bonds’ Rebuild America Infrastructure

Buy ‘MAGA Bonds’ Rebuild America Infrastructure

Bradley Blakeman, once a deputy assistant to former President George W. Bush (43), in an op-ed Sunday suggest “MAGA bonds,” named after President Trump’s “Make America Great Again” campaign slogan to finance the rebuilding of America’s infrastructure. “Bonds are a great investment, and they often provide a patriotic and needed purpose,” Mr. Blakeman wrote. “In […]

Gold Looks Cheap in Here, Central Banks are Key Buyers

Gold Looks Cheap in Here, Central Banks are Key Buyers

$GLD, $XAU, $EUR, $USD FLASH: Gold prices could still surge 20% this year as precious-metal investors and speculators are right to believe in a bright future for the commodity. One international guru told Barron’s that he considers gold at current marks of just below $1,300 oz a “bargain.” His price target for the year is […]

The Fed, “Will They, or Won’t They”

The Fed, “Will They, or Won’t They”

By Jim Collins The Big Q: Will they or won’t they? The “they” in the Q is the Federal Reserve’s Federal Open Market Committee FOMC), led by Chairman Jerome Powell. The action is obviously a cut in the fed funds target rate. Chairman Powell, much like his predecessors Janet Yellen and Ben Bernanke, is fond […]

Tesla (NASDAQ:TSLA) Misses Delivery Estimates, ‘Haircut’ Follows

Tesla (NASDAQ:TSLA) Misses Delivery Estimates, ‘Haircut’ Follows

$TSLA Tesla (NASDAQ:TSLA) had a rough day Thursday, the Bearish pressure came on the heels of much weaker delivery numbers on its EVs in Q-1 There continue to be concerns about how strong the demand is for the company’s M-3 sedan that has been on the market for less than 2 years. Tesla delivered just […]

Bond Yields Stabilize, Stocks Back in ‘Rally’ Mode

Bond Yields Stabilize, Stocks Back in ‘Rally’ Mode

$DIA, $SPY, $QQQ, $RUTX, $VXX FLASH: Infrastructure, healthcare and defense stocks stand to rally in the wake of President Trump being cleared by Special Counsel Robert Mueller of conspiring with Russia in the 2016 US Presidential election. Financial analysts are saying such stocks could run North as President Trump shifts his focus back to policy-making, […]

Gold Firms, Investors Move into Safe-haven Assets

Gold Firms, Investors Move into Safe-haven Assets

$GLD.$USD, $JPY FLASH: Last week gold posted its 3rd consecutive weekly gainer and rose 1%, the most since the week ending 1 February. The fundamentals Spot gold up 0.1% at $1,314.21 oz as of 0128 GMT. US gold futures up 0.2% at $1,314.40 oz. Investors sold shares Monday moving to the safety of bonds, while […]

The Geopolitical Uncertainty Vs The Price of Gold

The Geopolitical Uncertainty Vs The Price of Gold

$GLD, $USD, $EUR, $GBP, $CNY What we have been seeing over the past few years is that confidence in government is fading and the price of Gold is rising. Some current examples The UK House of Commons voted 413-202 last week to delay Britain’s exit from the EU. Despite resounding defeats, Prime Minister Theresa May […]

Home Loan Costs Fall, Mortgage Applications Rise

Home Loan Costs Fall, Mortgage Applications Rise

US mortgage home applications to buy and to refinanc increased last week as most borrowing costs fell in step with US bond yields tied to worries about slowing economic growth, data from the Mortgage Bankers Association showed on Wednesday. The Washington-based industry group’s seasonally adjusted index on mortgage activity rose 2.3% to 384.0 in the week […]

EU’s Slowdown Worse Than Investors Imagine

EU’s Slowdown Worse Than Investors Imagine

FLASH: The EU’s economy is cooling more than many investors believe, the slowdown poses the biggest risk to the market. The European Central Bank (ECB) has limited tools at its disposal to respond to economic weakness while European governments are not prepared to respond with spending warns Mohamed El-Erian. “People are underestimating how quickly Europe […]

Global Economy May Have Bottomed Out

Global Economy May Have Bottomed Out

$GS, $USD, $USO, $OIL FLASH: On the global markets, some green shoots are emerging. The global economy may have already bottomed out, according to Goldman Sachs Group Inc. Chief Economist in a note Tuesday. While growth remains soft, Goldman’s current activity indicator in February is slightly above the downwardly-revised December and January numbers. Some green […]

The Untold Story of Nixon’s $35 Gold Peg

The Untold Story of Nixon’s $35 Gold Peg

By Mark J. Lundeen $GLD, $SLV, $USD The Dow Jones in its BEV chart below is charging up the hill with eyes fixed on making new all-time highs.  In the past week it has advanced 2.9% BEV points, leaving only 3.52% BEV points to go before it once again makes stock market history.  Another couple […]

“No Need to Hike Rates Again”

“No Need to Hike Rates Again”

$DIA, $SPY, $QQQ, $RUTX, $VXX FLASH: Trump Policy Traction, FOMC Minutes Due Wednesday Tuesday, New York Fed President John Williams said he is comfortable with the level US interest rates are at now, and sees no need to raise them again unless growth or inflation shift to an unexpectedly higher gear. In an interview with […]

Treasury Traders Nervous

Treasury Traders Nervous

US treasury traders are bracing for heightened volatility next week as Fed Chairman Jerome Powell ushers in a new era of press conferences after every meeting, while the US and China meet again for trade talks. The FOMC is expected to keep interest rates unchanged following the 9 hikes since Y 2015. But investors see […]

Managed Money Moves Back into High Yield Corporate Bonds

Managed Money Moves Back into High Yield Corporate Bonds

US fund investors charged into high-yield corporate bonds during the latest week, shoveling $3.3-B, the most cash flowing into that market since late Y 2016, Lipper said Thursday, boosted by dovish words from Fed Chairman Powell. Underscoring investors’ appetite for some risk-taking, investors pulled $15-B net cash from US-based money market funds, according to the […]

Market Looking for a Dovish Stance from the FOMC Wednesday

Market Looking for a Dovish Stance from the FOMC Wednesday

$DIA, $SPY, $QQQ, $RUTX, $VXX The market is looking for a Dovish stance from the FOMC when it comes to its interest rate projections for Y 2019.  Everything will come into view at 2:00p EST Wednesday Investors in pain from a difficult year hope the Fed will align with President Trump’s ‘demand’ for dovishness in […]

Markets Flash ‘Slowdown’, Fed Turns ‘Dovish’

Markets Flash ‘Slowdown’, Fed Turns ‘Dovish’

Markets Flash ‘Slowdown’, Fed Turns ‘Dovish’ $JPM, $USO The Fed is likely to deliver some response to the wave of risk aversion hitting global markets, according to JPMorgan Asset Management’s fixed-income Chief. Policy makers can hardly ignore inversions showing up on the yield curve while a violent sell-off rocks US stocks on trade tensions, European […]

Monday’s Trade Relief Rally Saw Profit Taking Tuesday

Monday’s Trade Relief Rally Saw Profit Taking Tuesday

Monday’s Trade Relief Rally Saw Profit Taking Tuesday $DIA, $SPY, $QQQ, $RUTX, $VXX The S&P 500 fell 3.2% Tuesday on some concern on future economic growth, which was signaled by the drop in US Treasury yields. A technical test and breach of the S&P 500’s 200-Day MA at 2762.32 contributed to the selling. Monday’s trade-relief […]

The Trump Effect: Atlanta Fed Keeps GDP Forecast at 4.4%

The Trump Effect: Atlanta Fed Keeps GDP Forecast at 4.4%

The Trump Effect: Atlanta Fed Keeps GDP Forecast at 4.4% $DIA, $SPY, $QQQ, $RUTX, $VXX Wednesday, the S&P 500 finished with a gainer of 0.1%, driven by financial shares, which rallied on another rise in interest rates. The blue-chip DJIA outperformed, adding 0.6%, the NAS Comp  lagged, closing lower by 0.1%, and the small-cap Russell […]

Wall Street’s Red Lights Flashing on Tesla’s (NASDAQ:TSLA) Ability to Pay Debt

Wall Street’s Red Lights Flashing on Tesla’s (NASDAQ:TSLA) Ability to Pay Debt

Wall Street’s Red Lights Flashing on Tesla’s (NASDAQ:TSLA) Ability to Pay Debt $TSLA Tesla’s (NASDAQ:TSLA) stock price and CEO, Elon Musk are getting the headlines, but the real story looks to be the steep decline in the value of the EV maker’s bonds. $1.8-B of Tesla bonds due in August 2025 marked a record low Friday. The bonds […]

Tesla’s (NASDAQ:TSLA) CEO, Elon Musk Filmed Smoking Marijuana, Stock Dives

Tesla’s (NASDAQ:TSLA) CEO, Elon Musk Filmed Smoking Marijuana, Stock Dives

Tesla’s (NASDAQ:TSLA) CEO, Elon Musk Filmed Smoking Marijuana, Stock Dives $TSLA Tesla Inc. (NASDAQ:TSLA) CEo Elon Musk was filmed smoking marijuana, drinking whiskey and wielding a sword just hours before the automaker said its accounting chief would leave after a 1-month stint, the latest in a string of unusual behavior and executive departures that is […]

Like Tesla’s (NASDAQ:TSLA) Stock, its Bonds ‘Tanked’ Too

Like Tesla’s (NASDAQ:TSLA) Stock, its Bonds ‘Tanked’ Too

Like Tesla’s (NASDAQ:TSLA) Stock, its Bonds ‘Tanked’ Too $TSLA The ‘420’ Tweet has raised pointed question from The Street about his judgement, is it impaired? Like its stock price, Tesla (NASDAQ:TSLA) bonds have given up all of the gains they made after the company CEO, Elon Musk shocked investors with the ‘420’ Tweet on 7 […]

Most Investors Pick Stock Funds as Best Long-Term Investment

Most Investors Pick Stock Funds as Best Long-Term Investment

Most Investors Pick Stock Funds as Best Long-Term Investment $SPY Investors have selected stock index or mutual funds over 5 other investments as the best for the long term results, according to the latest Wells Fargo/Gallup Investor and Retirement Optimism survey. Real estate and individual stocks are a distant second. Fully 54% of investors choose […]

Ferrari (NYSE:RACE) a Safer ‘Bet’ than Italian Government Bonds

Ferrari (NYSE:RACE) a Safer ‘Bet’ than Italian Government Bonds

Ferrari (NYSE:RACE) a Safer ‘Bet’ than Italian Government Bonds $RACE Italy’s iconic luxury carmaker Ferrari (NYSE:RACE) and Exor, the owners of Juventus football club, are among many Italian companies that can now borrow money more cheaply than Rome’s crisis-hit government. Italian sovereign bond yields rose this week to some of their highest marks in years […]

Tesla (NASDAQ:TSLA) Will Fail, All ‘Rentier’ Businesses Fail

Tesla (NASDAQ:TSLA) Will Fail, All ‘Rentier’ Businesses Fail

Tesla (NASDAQ:TSLA) Will Fail, All ‘Rentier’ Businesses Fail $TSLA Jim Chanos bets that Tesla. Inc. (NASDAQ:TSLA) Elon Musk’s struggling EV company will fail. Mr. Chanos has identified, and sold short many of the best-known corporate disasters of the past few decades. He say in an interview Wednesday, that  the underlying philosophy of his investment strategy […]

This Market Could Be Saying ‘Buy in May’

This Market Could Be Saying ‘Buy in May’

This Market Could Be Saying ‘Buy in May’ $DIA, $SPY, $QQQ, $VXX An “upside-down” market may bode well for U.S. stocks, according to JPMorgan (NYSE:JPM). Established patterns look to be off in here, as bonds and equities move in tandem, stock prices climb along with volatility, shares fall despite strong earnings, and money flowed out […]

Assets That Will Suffer on the Return to the Normal Interest Rate Regime

Assets That Will Suffer on the Return to the Normal Interest Rate Regime

Assets that Will Suffer on the Return to the Normal Interest Rate Regime $SPY, $GLD, $SLV, $BAC While Treasuries faded a bit after 10-year yields tapped at the 3% mark last week for the 1st time in 4 years, expectations are mounting that higher rates will soon be normal again, that rate historically is 5.0% […]

Investors Rotating Leadership from QE ‘Winners’ to QE ‘Losers’

Investors Rotating Leadership from QE ‘Winners’ to QE ‘Losers’

Investors Rotating Leadership form QE ‘Winners’ to QE ‘Losers’ $DIA, $SPY, $QQQ, $VXX Analysts are expecting investors will shift their holdings as the realization sinks in that the Fed is committed to raising interest rates until a major event compels the central bank to reverse course. That means investments that had strong gains during a […]

Blockchain, “No One Can Own of Control It, Everyone Can Use It”

Blockchain, “No One Can Own of Control It, Everyone Can Use It”

Blockchain, “No One Can Own of Control It, Everyone Can Use It” $BTCUSD, $ETHUSD, $IBM, $GOOG, $JPM, $USB, $WMT, $SPOT Blockchain is a technology that no one can own or control but anyone can use, it is the platform for Cryptocurrency. Blockchain as  applications for just about any enterprise involved in record-keeping, documentation, registrations and […]

People are asking: “Has this market topped.”

People are asking: “Has this market topped.”

People are asking: “Has this market topped.” $DIA, $GLD, $SLV Since February 8th when the Dow Jones broke below its -10% BEV line in the chart below, it’s been building a pennant formation. I don’t know how significant it will be when the BEV plot breaks above or below the pennant, as technical analysis in today’s […]

CPI Came in ‘Hot’, US Stock Market Shrugged it Off and Spiked

CPI Came in ‘Hot’, US Stock Market Shrugged it Off and Spiked

CPI Came in ‘Hot’, US Stock Market Shrugged it Off and Spiked $DIA, $SPY, $QQQ, $VXX The stock market pundits fears about inflation are inflated. Econ 101: No Inflation, No Growth Top-weighted financials and technology sectors lead market higher Wednesday, US stocks finished sharply higher, shrugging off an initial sharp decline in futures pre-market immediately […]

Insight into the Stock Markets’ ‘Quick’ Correction

Insight into the Stock Markets’ ‘Quick’ Correction

Insight into the Stock Markets’ ‘Quick’ Correction $DIA, $SPY, $QQQ, $VXX As US stock markets conclude 1 of the worst weeks point-wise in history, below is a list of the Key things to know about the quick 9 day corrective action, as follows: It was driven by technicals, not fundamentals. The ongoing market correction does […]

Monetary Policy is the Engine-of-Inflation

Monetary Policy is the Engine-of-Inflation

Monetary Policy is the Engine-of-Inflation $DIA, $GLD, $SLV Just 2 Friday’s ago, on January 26th The Dow Jones Industrial Average (DJIA) made its latest BEV Zero, new all-time high.  Then 9 trading days later on Thursday February 8th it broke below its BEV -10% line in a dramatic fashion. The BEV plot seen below begins at […]

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 […]

Tesla (NASADQ:TSLA) Investors Searching for Returns Ignore Risk, Buy Bonds

Tesla (NASADQ:TSLA) Investors Searching for Returns Ignore Risk, Buy Bonds

Tesla (NASADQ:TSLA) Investors Searching for Returns Ignore Risk, Buy Bonds $TSLA Tesla Inc. (NASDAQ:TSLA) sold $546-M of auto lease-backed bonds Thursday. The debt deal allowed Tesla to pare the risk premiums it must pay on the notes. They were sold to yield between 2.3 and 5%. Investors had at the initial offered prices put in […]

Trump Rallies into “The January Effect” for the 2nd Year Running

Trump Rallies into “The January Effect” for the 2nd Year Running

Trump Rallies into “The January Effect” for the 2nd Year Running $DIA, $SPY, $QQQ, $VXX The Trump ‘Santa Claus’ Rally started the day after Donal J. Trump was elected US President on 8 November 2016, ran throught Christmas 2016, through all of Y 2017, and is still going strong this year, into The January Effect. […]

World’s Financial Markets ‘Bloated’ with Liquidity

World’s Financial Markets ‘Bloated’ with Liquidity

World’s Financial Markets ‘Bloated’ with Liquidity $DIA, $GLD, $SLV As far as the market trends I usually follow went last week, nothing new in the broad stock or precious metals markets, more of the same old stuff. The Dow Jones (DJIA) made another new all-time high Wednesday, the 95th since the November 2016 election.  But besides […]

The Trump Stock Market Rally Defied the Naysayers in 2017

The Trump Stock Market Rally Defied the Naysayers in 2017

The Trump Stock Market Rally Defied the Naysayers in 2017 $DIA, $SPY, $QQQ, $VXX Year 2017 was  full of surprises but market reactions defied conventional wisdom, leaving many a prognosticator 180 degrees out of phase.. Take the global economy; it was strong, yet bond yields went nowhere. NKorea threatened nuclear war, and volatility in US […]

Stocks World Wide at Record Highs

Stocks World Wide at Record Highs

Stocks World Wide at Record Highs $DIA, $SPY, $QQQ, $VXX. $DAX The Trump Bull Market Rally is Up and Running Major world stock markets rallied and government bond yields fell Tuesday as strong corporate profits, steady global growth and low inflation provide few alternatives for investors outside of stocks. Equity markets from Asia to Europe […]

Homeownership Does Not Build Wealth Like Other Investments

Homeownership Does Not Build Wealth Like Other Investments

Homeownership Does Not Build Wealth Like Other Investments $DIA, $SPY, $QQQ, $VXX A home is a place to live, raise ad family and thrive, if it goes up in value it is a lucky extra Homeownership is necessarily better than paying rent, according to a study Florida Atlantic University, Florida International University and the University […]

Bitcoin a Thriving, Anonymous ‘Speculative’ Instrument

Bitcoin a Thriving, Anonymous ‘Speculative’ Instrument

Bitcoin a Thriving, Anonymous ‘Speculative’ Instrument $BTCUSD Bitcoin, whose value has fluctuated significantly this month, remains a “speculative” investment that thrives because of the cryptocurrency’s anonymous nature, BlackRock’s (NYSE:BLK) Larry Fink said Monday. “The reason why it does so well is it is anonymous. It’s anonymous, and it’s cross-border,” Mr. Fink, whose firm oversees nearly […]

Millennials Rather Bitcoin Than Stocks and Bonds

Millennials Rather Bitcoin Than Stocks and Bonds

Millennials Rather Bitcoin Than Stocks and Bonds $BTCUSD Seen in News headlines, “millennials kill everything from romance to napkins”, but a new survey shows they may be responsible for keeping the Bull run in Bitcoin alive. A survey by venture capital firm Blockchain Capital found that about 30% of those in the 18-to-34 age range would […]

China to Open Up Financial Markets with Tougher Regulations

China to Open Up Financial Markets with Tougher Regulations

China to Open Up Financial Markets with Tougher Regulations China’s central bank (PBOC) Governor Zhou Xiaochuan, 69 anni, says that the country’s financial system is becoming significantly more vulnerable due to high leverage. Zhou who has made some stern warnings recently about debt levels in the world’s 2nd-largest, soon to be the world largest economy. […]

World Stocks Headed to the 12th Month of Gainers

World Stocks Headed to the 12th Month of Gainers

World Stocks Headed to the 12th Month of Gainers $BP, $RYAAY, $BNPQY World stocks headed for a record 12th month of gains Tuesday, as a 5.5 month high in European stocks and records elsewhere underscored one of the most robust Bull markets in history. Europe’s latest rally came as figures from the once-fragile Eurozone showed […]

Investors Deliver New Money into ‘Risk On’ Assets

Investors Deliver New Money into ‘Risk On’ Assets

Investors Deliver New Money into ‘Risk On’ Assets $DIA, $SPY, $QQQ, $VXX Investor appetite for risk on assets is set to make this by far the strongest year for inflows into stocks and corporate debt. Record highs for global stock markets has seen demand for riskier assets surge this year. Inflows are up $534-B YTD, […]

You and the US Stock Market: Big Q’s & A’s

You and the US Stock Market: Big Q’s & A’s

You and the US Stock Market: Big Q’s & A’s $DIA, $SPY, $QQQ, $VXX The US and global stock markets have hit record highs this year, as investors celebrate their gainers. But the record do not seem instilling a sense of excitement in everyone. Some investors are nervous, certain that a major correction is overdue, […]

The Market Update for September

The Market Update for September

The Market Update for September $DIA, $SPY, $QQQ, $GLD, $SLV The Dow Jones (NYSEArca:DIA) made 7 new BEV Zeros (new all-time highs) in the past 3 weeks; it cannot make a decent correction if it continues doing that.  And that’s one thing this market needs to do – make a decent correction.  The Dow Jones […]

The Effects of the Shortened T+2 Settlement Cycle

The Effects of the Shortened T+2 Settlement Cycle

The Effects of the Shortened T+2 Settlement Cycle In March 2017, the United States Securities and Exchange Commission (the SEC) adopted amended Rule 15c6-1(a) which shortens the standard trade settlement cycle for most broker-dealer securities transactions from three business days (known as T+3) to two business days, (known as T+2). On Tuesday, September 5, 2017, […]

The Financial Markets are Ignoring the Saber Rattling

The Financial Markets are Ignoring the Saber Rattling

The Financial Markets are Ignoring the Saber Rattling $DIA, $SPY, $QQQ, $VXX Financial markets have not reacted much to the escalation in tensions between the US and NKorea, and that is largely because in the worst-case scenario it is impossible to guess an appropriate price for things like stocks and bonds. It’s hard to price […]

Managed Money Saying ‘Reduce Risk’

Managed Money Saying ‘Reduce Risk’

Managed Money Saying ‘Reduce Risk’ $DIA, $SPY, $QQQ, $GLD, $VXX Some of the biggest money managers have a message for investors, it is time to reduce risk, aka take some profits off of the table. Investors should pare US stocks and high-yield debt while shifting to lower-risk assets, such as Treasuries and mortgage-backed securities, according to […]

Fed’s Plan to Cut Bond Holdings Could Be “Very Disruptive”

Fed’s Plan to Cut Bond Holdings Could Be “Very Disruptive”

Fed’s Plan to Cut Bond Holdings Could Be “Very Disruptive” $DIA, $SPY, $QQQ, $VXX JPMorgan Chase & Co’s (NYSEJPM) Chairman, Jamie Dimon, said Tuesday that the unwinding of Fed’s bond-buying programs is an unprecedented challenge that may be more disruptive than people think. “We’ve never have had QE like this before, we’ve never had unwinding […]

Assuming I’m right how much higher can this market go?

Assuming I’m right how much higher can this market go?

Assuming I’m right how much higher can this market go? $DIA, $GLD, $SLV Another Quarter in 2017 has come and gone, and, I have to say that June was for the most part pretty quiet compared to what the stock market saw earlier in the year.  In June we saw 7 new BEV Zeros (new […]

Global Stock Investors Seeing Record Market Highs

Global Stock Investors Seeing Record Market Highs

Global Stock Investors Seeing Record Market Highs $DIA, $SPY, $DAX, $DJSH, $N300, $NSEI Year to Date (YTD) investors in global stock markets are seeing record highs. Record marks for the widely-followed country indexes occurred in the context of notably low volatility, adding to investor comfort and a sense of accomplishment. All of this was accompanied […]