Posts On Market Update

A Divided Fed

The Federal Reserve elected to cut interest rates again by 25-basis points at the conclusion of its meeting this week. The committee voted in favor of the cut by a margin of 7-3. The split may have been more than markets anticipated, and the Fed’s commentary was deemed to be not so easy when it comes to monetary policy. 7 of 17 FOMC members expect just one more rate cut this year. The not so dovish meeting sent stocks lower initially before they recovered. The... Continue Reading

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Rapid Inflation Could Be Next

There has been no shortage of issues for global financial markets to contend with in recent months. An aging economic expansion and equity bull market, an accelerating global economic slowdown and the ongoing U.S./China trade war have been at the center of attention. At some point, the economic expansion and bull market in stocks will have run its course, as they always do. Likewise, the war on trade may not go on indefinitely, as it is in the best interest of both sides to come... Continue Reading

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Appetite For Risk

The stock market has put together a decent run over the past week as investor appetite for risk has seen an uptick. Some optimistic commentary about the ongoing U.S./China trade war is the primary catalyst for equity gains this week, and investors are hoping that some significant progress may be made at the negotiating table in the weeks ahead. The stock market has a tendency to turn on a dime, however, and any negative developments concerning the trade war could send stocks sharply lower again... Continue Reading

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Markets Can’t Have Cake and Eat it Too

The phrase “have your cake and eat it too” is commonly used to describe a situation in which people want the best of both worlds, or perhaps want to have two or more things that are incompatible. It can also be used to describe when people want more than what might be considered reasonable. The phrase simply alludes to the fact that you cannot have your cake and eat it too. Once you have eaten the cake, you can no longer have it. This is... Continue Reading

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Building a New Base

The gold market has seen a bit of a pullback from recent 6-year highs. The metal dipped under the $1500 level yesterday before bargain hunters stepped in today to propel the market back above this key level. Recent price action suggests that the market may be in the process of building a new base which could potentially act as a new, major level of price support.  A series of higher lows also lends credibility to the notion that a firm uptrend is in place. Recent... Continue Reading

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Has the Next Race to the Bottom Begun?

There is certainly no shortage of complex issues plaguing global financial markets currently. The ongoing U.S./China trade war and recent unrest in Hong Kong have fueled a sharp rise in market volatility in recent sessions, and that volatility expansion could potentially be indicative of a long-term topping process in stocks. Has the next race to the bottom begun? Global central banks appear willing to ride to the rescue once again, however, and could take significant measures to combat the accelerating global economic slowdown. The U.S.... Continue Reading

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$2000 Gold is on the Way

The recent breakout above the $1450 level could potentially set the stage for a run higher to previous all-time highs near $2000 per-ounce or far beyond. Although the market may be susceptible to a near-term pullback, such a correction is not only healthy but would be welcomed by eager buyers. The upside breakout in gold is gathering steam just as the stock market looks ready to fall through the floor. Recent volatility spikes in equities could be just the tip of the iceberg, and markets... Continue Reading

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Rates Will Be Back to Zero in No Time

The past trading week has been an interesting one. The highly anticipated FOMC meeting has now come and gone, with the central bank cutting the Fed Funds rate by 25-basis points as expected. The Fed did not, however, seem to provide the type of dovish message that the stock bulls were looking for. Stocks sold-off hard following the Fed’s decision. On Thursday, stocks were set to stage a significant rebound and looked poised to retake all the declines from the previous day. That was until... Continue Reading

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Could the Fed Reserve Cut Mark the Top for Stocks?

The Federal Reserve cut the Fed Funds rate today by 25-basis points in a move that was widely expected. Markets had been increasing calls for a rate cut from the central bank, and President Trump has made it no secret he thinks the Fed is on the wrong track and wants lower rates. Over the last nine years, markets have become increasingly accustomed to the Fed or other central banks riding to the rescue at any sign of market volatility or significant risk aversion. Central... Continue Reading

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New Highs May be Seen

The gold market is slightly lower in early grade Monday, but remains firmly above the key $1400 level. The market may simply be taking a breather before it begins another leg higher. Overnight, fresh GDP data out of China showed the slowest growth in the country in 27 years. The market reaction has been muted thus far, however, as some key data points for June were more encouraging than expected. The significant slowdown in GDP is clearly a cause for concern, especially at a time... Continue Reading

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