Is The Trump Rally Finally Fizzling Out?

The stock market has made significant gains since the Donald Trump Presidential election victory in November. Stocks have moved higher on the notion of significant tax reforms and a large fiscal spending plan. Interest rates moved higher while the dollar index also saw a major boost. The gold market sold off on the Trump win. Investors appeared content buying stock and appetite for investment risk was robust. Things could be turning, however. Yesterday, the stock market saw its largest one day drop since October. Since... Continue Reading

Was the Fed More Dovish Than Expected?

Last week, the FOMC meeting took place over Tuesday and Wednesday with the central bank’s decision to raise the Fed Funds rate by a quarter point being announced at the meeting’s conclusion. The decision to hike rates came as no surprise. The Fed had taken steps to inform markets that a rate hike was not only possible but likely coming several weeks ago. Clearly, the Fed did not want to upset financial markets by catching investors off-guard with an unexpected rate hike. The Fed did... Continue Reading

Not So Fast…

The Federal Reserve this week is lifting its key interest rate by .25%. This move by the central bank did not come as a surprise. It seems the Fed took various steps in recent weeks to “warn” markets that a March rate hike was coming-even though just several weeks ago the odds or a March hike by the Fed were very small. Given much of the recent hawkish talk from various Fed officials, the question no longer was if they would raise rates three times... Continue Reading

Will the Rally Resume?

After getting 2017 off to a stellar start, the gold market has been under some pressure in recent weeks, declining by over $60 per ounce. The selling seen in recent sessions could potentially provide another opportunity to buy gold at lower levels. The gold market apparently did not fully discount a March rate hike from the Fed. The central bank has taken a decidedly more hawkish tone in recent weeks, and essentially informed markets that a March hike was not only on the table, but... Continue Reading

More Signs of an EU Breakup?

Think right now with rising stocks, rising interest rates, better economic data and a more hawkish Fed that there isn’t good reason to own gold? Think again… Spreads on Credit Default Swaps, or CDS, are rising for some EU countries. This would seemingly indicate that traders and investors may be getting more nervous about a potential breakup of the union, or of a key country deciding to leave as Great Britain did. A rise in these swaps simply means that more insurance is being purchased... Continue Reading

Is It About to Hit the Fan?

Stocks just seem to keep going and going…Markets have moved higher on the notion of significant tax reforms and a big boost in fiscal spending. Financials have cheered on the idea of less regulation and potentially higher interest rates. Much of the economic data has continued to point to ongoing improvement, and inflationary pressures are on the rise. While it seems right now that markets could potentially continue higher from current levels, some believe that the markets may be in for a big surprise. In... Continue Reading

So What if the Fed Hikes?

The idea of rising interest rates has been pondered by markets for some time. Given some recent commentary, it seems that the pace of rate hikes could potentially be even faster than originally anticipated. Speaking on Friday in Chicago, Fed Chairwoman Janet Yellen reiterated that an interest rate hike “would likely be appropriate” if the economy remained on track. Her comments come after several other central bank officials have also made more hawkish comments about the economy and pace of interest rate hikes. The central... Continue Reading

A Sign of Strength

The Dow has hit a major milestone – 21000. Markets continue to cheer on the Trump administration, and are moving higher on hopes of stronger economic activity and tax cuts. Interest rates have begun to rise again, and the dollar index is also on the move to the upside again. Interest rates could potentially challenge their post-election highs while the dollar index could do the same. The Fed has sounded significantly more hawkish, and a March interest rate hike is now not only very much... Continue Reading

Buy the Dips

The gold market has posted solid gains since the beginning of the year, and thus far is not showing any significant signs of slowing down. From a technical standpoint, the yellow metal looks poised to make another run to the upside. What makes all of this especially interesting is the fact that gold is rising along with stocks. Even bonds have been moving back up as rates have been declining. So what gives? It would seem to be very clear that despite new all-time highs... Continue Reading

Remember that Debt Ceiling Thing?

The nation’s spending limit is quickly coming up, due to expire on the 15th of March. The debt ceiling is a hotly debated topic, and unless Congress acts to expand the debt limit, things could potentially get quite crazy. Back in 2011, the debate over the debt ceiling helped fuel a rally in gold that took the yellow metal to all-time-highs. Standard & Poor’s downgraded the U.S. credit rating that year, sending shockwaves through global markets and putting into question the country’s status as the... Continue Reading