EU Slowdown May Be Worse Than Expected

It’s no secret that the Eurozone continues to struggle with a slow economy. The EU has seen many of the ups and downs that have been seen in the U.S. in recent years while also having to contend with numerous other issues such as massive sovereign debts and policy disagreements. Now, the ECB has slashed its growth and inflation forecasts for the year while also lowering the outlook for 2020 and 2021. This would seemingly acknowledge the fact that the slowdown being seen in Europe... Continue Reading

U.S. Treasury Taking Steps to Avoid Debt Ceiling

As U.S. debt has soared past the $22 trillion level, the ongoing problem is once again catching some attention. It was recently reported that the Treasury Department is taking some extraordinary measures to avoid violating the debt ceiling as it could have significant effects. Reuters reported that Treasury Secretary Steve Mnuchin sent a letter to House Speak Nancy Pelosi on Monday saying he was suspending investment in the Civil Service Retirement and Disability Fund and that a “debt issuance suspension period” would commence on Monday... Continue Reading

The Dollar Is Going Down

Is a significant dollar decline in the future? Over the weekend, Fed Chairman Jerome Powell was interviewed by CBS’ “60 Minutes” and discussed a range of topics. The Fed chief has been widely criticized by U.S. President Donald Trump (who appointed Powell) in recent months over the central bank’s plans to normalize monetary policy through interest rate hikes. Under Powell, the Fed raised interest rates four times in 2018 and could look to hike them further in the months ahead. The central bank began the... Continue Reading

The Geopolitical Landscape Could Get Worse

There has been no shortage of issues for global financial markets to grapple with over the last several months. Not only does the U.S. has numerous domestic challenges to deal with, the country is also involved in some high-stakes disagreements on the international stage and will need to closely monitor others. The geopolitical landscape could get worse. A lot worse. Here are three major issues that have the potential to hit global financial markets hard and fuel a significant flight to safety: North Korean Nuclear... Continue Reading

Another Explanation for the Rise in Gold

The recent rise in gold has been widely discussed in financial media. There have been numerous issues attributed to gold’s rise including the U.S./China trade war, an increasingly-dovish Fed, a slowing economy and a rising risk of recession. One issue-albeit one you probably have not heard about yet-is the increasing risk of stagflation. The phrase stagflation was first used in Great Britain and today is understood to mean a period in which prices rise without a corresponding increase in demand. During a period of stagflation,... Continue Reading

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A New Debt Milestone

The U.S. Government debt recently topped an astounding $22 trillion reaching a new debt milestone. The debt is composed of two components: debt held by the public and debt held by government agencies. The public debt is continuously marketed to investors all over the world. This debt is used to fund the deficit as well as to pay off maturing debt. Because investors demand a return on their investment, public debt is subject to interest charges, furthering the ongoing deficit. For a government to manage... Continue Reading

More Symptoms of Economic Trouble

Today, the Institute for Supply Management reported that its manufacturing purchasing managers index fell in February to the lowest level since November 2016. Not coincidentally, it is not the only economic indicator to decline to the lowest levels since that time. Could this mean more symptoms of economic trouble? Of course, November 2016 was when Donald J. Trump was elected President in a victory that caught many off-guard. Since he has been in office, Trump has enacted significant legislation. His administration has performed significant deregulation,... Continue Reading

How About 55% Declines for Stocks?

Love him or hate him, President Trump has accomplished a great deal in his first two years in office. Stocks are near record highs, unemployment is near a 50-year low and the economy is seeing real growth. Trump, who has never been one to shy away from voicing his opinions, and he recently tweeted: ‘Had the opposition party (no, not the Media) won the election, the Stock Market would be down at least 10,000 points by now. We are heading up, up, up!’ – President... Continue Reading

How to Make the Most of an Investment in Gold

When it comes to making the most of an investment in gold, there is really one simple rule of thumb to follow: Buy as much as you can. With a long-term view and long-term objectives, the more bullion you can acquire the better. Not only does this strategy on how to make the most of an investment in gold provide the most upside appreciation potential, but it comes with other potential benefits as well. Higher Prices: Simple math tells you that the more gold you... Continue Reading

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Don’t Say You Weren’t Warned

The last several weeks have seen developments on multiple fronts that could potentially shape the next major market meltdown. The Fed’s reluctance to continue shrinking its balance sheet must be at the top of the list. The writing on the wall has never been clearer: Stock markets cannot maintain current levels and wouldn’t have gotten here in the first place without the massive stimulus efforts of the Fed. In other words, stocks are currently trading at “artificial” levels. Stock valuations have not reached current levels... Continue Reading