Posts On Market Update

Monetary Policy Matters Not

  A lot has been discussed in recent months concerning the Fed and its potential plans to begin hiking interest rates. One week the Fed is seemingly on hold, the next week the central bank is getting ready to hike. During this see-saw discussion of the beginning of the tightening cycle, the Fed has consistently stated that any decision with regards to interest rates would be “data dependent.” The equity markets are now in an absurd state of uncertainty. A bad piece of economic data... Continue Reading

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IS GOLD ON THE VERGE OF A BREAKOUT?

As we have stated regularly for some time now, the global financial landscape appears to be headed for some significant changes. These changes may affect how investors look at various financial markets and may be the catalyst for a large shift in both investor allocation and sentiment. What are some of the issues we are referring to? There are several noteworthy issues in play right now that may significantly impact financial markets. Here we will briefly outline just a few, and discuss why these issues... Continue Reading

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Are Stocks Ready to Tumble?

Stocks are under some pressure recently as the risk of a Greek default and the notion of higher interest rates take their toll on investor sentiment. The question is: Is recent weakness seen in equities simply another pullback or is it indicative of more volatility and lower prices to come? Like anything else in life, different investors will have different opinions on this. We do believe, however, that the stock bears do have a case. Stocks are now in the seventh year of the rally... Continue Reading

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Mixed Signals

Following  this morning’s release of non-farm payrolls data for April, one could certainly characterize the reaction among various markets as being “mixed.” According to the U.S. Department of Labor, the country added 223,000 jobs last month while the unemployment rate ticked lower to 5.4 percent-the lowest level in seven years. The less talked about “participation rate”, which indicates the percentage of working-age people who are employed or actively looking for work, came in at 62.8%- matching the lowest since 1978. Stocks cheered the headline number,... Continue Reading

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WHY IS THE FED RELUCTANT TO RAISE RATES?

The Fed appears to have a problem on its hands, and markets are watching. The gold market, like many other asset classes, has been paying close attention to the ebb and flow of hawkish and dovish rhetoric from the central bank. Investors seem to be taking a “wait and see” attitude at this point, neither willing to truly commit but also not willing to stand idly by. Stocks have been going up for years now, while interest rates have remained artificially low. The gold market... Continue Reading

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Wall Street’s 2014 Profits wiped out in one week

In a word…PAIN Wall Street has been rocked this week as it endured its 5th straight losing session.  In the last five days, the DOW has lost over 850 points.  Since their high’s in mid-September, the markets on Wall Street have seen an average loss of 9% and over $1.5 Trillion of value was wiped away. The Dow opened badly on Wednesday, and then things got worse as it plummeted 460 points in early morning trading before reclaiming some of the early losses and ended... Continue Reading

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Are Stocks Getting Ready To Sell-off?

We have been discussing the five year old rally in stocks for a while now, and the rally is beginning to look a little tired. Markets have seen a bit more volatility in recent weeks due to several issues, and that increase in volatility could potentially indicate that we are nearing a top. Although no one can see the future, one cannot argue the fact that stocks have gone higher without looking back for years now, and that the current state of euphoria likely won’t... Continue Reading

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Billionaires Dumping Stocks- What Does It Mean For Your Portfolio?

Let’s face it. Markets are driven not by the small retail investor, but rather by the big fish-the large banks, financial institutions and people or groups with enough capital to make a dent. These larger market players often attempt to hide or mask their intentions, as retail investors will often try to catch a ride on their coattails. That being said, there have been some interesting developments as of late. Several big market players, guys with names like Warren Buffet and Berkshire Hathaway, John Paulson... Continue Reading

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