Uh Oh

Recent revelations from Apple showed that sales of its iPhone products were way slower in China than many had anticipated. The poor sales data along with reduced guidance from the company sent its stock down by nearly 10% on Thursday as the Dow Jones Industrial Average shed over 600 points. Bad news from Apple was not the only issue weighing down the markets, either. A recent string of manufacturing data has clearly shown a slowdown in activity. After the Apple announcement on Thursday, the latest... Continue Reading

2019 to Pick up Where 2018 Left-off

On the first trading day of the New Year, stocks are set to once again tumble at the open. Premarket trading points to around a 400-point decline for the Dow Jones Industrial Average right out of the gate while the tech-heavy Nasdaq is set to drop over 140 points. An ugly start to the new trading year to say the least. The selling is being fueled by many of the same factors that has fueled selling in recent weeks: The potential for a global economic... Continue Reading

Get Ready for Some Serious Bumps

The markets are ending the year on what can only be called a sour note. Stocks are either in or on the verge of entering bear market territory and the potential downside could be just getting started. Measures of market volatility are also highly elevated and could potentially be indicative of further selling pressure in the months ahead. The potential risks facing the economy and global stock markets are immense. The ongoing war over trade, the potential fallout from a hard “Brexit,” higher interest rates... Continue Reading

Make a Plan

As the year comes to a close, there is no better time to begin thinking about and planning for next year. Significant changes in the global economy and market dynamics necessitate that investors take an objective look at their portfolios to determine how to try to stay a step ahead. Given the current economic and geopolitical backdrop, there as perhaps never been a more important time to have a significant allocation in hard, physical assets like gold. If you are thinking about making some changes... Continue Reading

The Breakout Has Begun

The stock market has seen a major volatility expansion in recent weeks as declines have mounted. The equity markets are currently grappling with numerous issues that could not only set the stage for the next bear market but could also send stocks decidedly lower in a short period of time. Some of the major catalysts for recent stock selling include the ongoing trade war with China, rising interest rates, geopolitical risks and a partial government shutdown. Investors may now be wondering, however, if they must... Continue Reading

Markets Don’t Agree with the Fed

The Fed’s decision to hike rates again on Wednesday was met with displeasure from equity investors. Stocks saw sharp declines even as the Fed lowered its forecast for next year from three rate hikes to two. That displeasure was on full display on Thursday, as stocks once again got absolutely rocked. The tech-heavy Nasdaq was down 3% at the lows, putting it down over 20% from its August peak. Although the index recovered a bit, it still ended the session down just under 20% from... Continue Reading

Fed Hikes Rates by a Quarter-Point

The highly anticipated Fed meeting on monetary policy has concluded with the central bank electing to hike rates by 25 basis points. The quarter-point hike was not unsuspected and investors will likely be far more concerned with the central bank’s commentary about its plans for next year. The Fed voted unanimously to hike rates today, while it lowered rate hike expectations for next year down to two from three. The Fed also lowered its longer-term estimate of the Fed Funds rate to 2.8% from 3%... Continue Reading

What if Stocks Declined by 50% or More?

Recent stock market volatility and declines could be a taste of things to come. The market has been moving higher for a decade now on the back of ultra-low rates and easy money. That era is coming to an end, however, and stocks could be in for quite the shock as monetary policy tightens. The ultra-low rate policies of central banks have allowed corporations to invest, expand and hire. As the cost of capital increases, however, these wheels are likely to grind to a halt.... Continue Reading

The Ultimate Safe Haven

The markets have seen increasing volatility in recent weeks as rates move higher and as stocks decline. Recent market volatility could, however, be just a drop in the bucket of what could be seen as the New Year gets underway. Investors have numerous issues to contend with and a great deal of uncertainty about what the Fed may or may not do with monetary policy. The potential for an ongoing trade war with China, the ongoing issues in U.S. politics, Brexit and more could all... Continue Reading

Now is the time to buy dips

The gold market was quiet in trading today yet gave up little ground as the metal backs off recent highs. The market is just below key resistance at the October highs in the $1252 area and could be gearing up to punch through that level to the upside. Stocks, on the other hand, continue to see increasing volatility and declines. Recent price action in stocks could simply be a drop in the bucket of further declines that could take place in the weeks and months... Continue Reading