Tag Archive: Fed

Fed Chief Jerome Powell Acknowledges Debt Problem

The U.S. is running massive deficits as the nation’s indebtedness continues to grow. Speaking at the Economic Club of Washington D.D., Fed Chairman Jerome Powell recently acknowledged the issue. In a piece by cnbc.com, Powell was quoted as saying “I’m very worried about it. From the Fed’s standpoint, we’re really looking at a business cycle length: that’s our frame of reference. The long-run fiscal, nonsustainability of the U.S. federal government isn’t really something that plays into the medium term that is relevant for our policy... Continue Reading

Risk is to the Upside

When it comes to managing investments, risk management is everything. Knowing the potential risk on any position is imperative to success. Risk is not always to the downside, however, and oftentimes markets will exhibit behavior that warrants upside risk. The gold market may currently be displaying such upside risk. After spending much of 2018 probing the recent lows, the selling pressure eventually began to run dry. Try and try as they might, the bears were simply unable to push prices to significant new lows. In... Continue Reading

Markets Sharply Higher as Trade Tensions Ease

The highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping took place over the weekend at the G20 meetings in Argentina. The two leaders had an opportunity to discuss trade and a range of issues, and reportedly came to an important agreement. The two nations effectively called a cease-fire over further tariffs that were set to be initiated on January 1st, 2019. The agreement was certainly progress considering little headway has been made in recent months. Whether the two countries can... Continue Reading

Is the Fed Starting to Backtrack?

Rising interest rates have been the topic of considerable debate in recent months. The Fed has been sticking to its plan of gradual rate hikes while the benchmark 10-year note yield is solidly above the 3% level. Higher rates have not gone unnoticed, with everyone from President Donald Trump to Mad Money host Jim Cramer weighing in. Stock investors have also made their opinion clear, with recent declines and increasing volatility being largely blamed on higher rates. So far, the Fed has stuck to its... Continue Reading

Trouble Brewing

The last several weeks have seen a very noticeable difference in risk appetite and market dynamics. Stocks have begun to show some significant signs of cracking as volatility has broken out to the upside. For stock investors, the last several weeks could simply be a small taste of more to come. Indeed, the market has covered a lot of ground over the last decade and could have a long way to fall if fundamentals continue to deteriorate. The next major potential catalyst for another leg... Continue Reading

Time to Buckle Up

The past week has seen an enormous increase in stock market volatility. In just two sessions, the Dow Jones Industrial Average shed nearly 1400 points, and the NASDAQ officially entered correction territory on Thursday. The sharp and rapid rise in interest rates has been pinned as the primary culprit for the sell-off, and things could be just getting started. Although stocks are sharply higher in early trade on Friday, the rally being seen could simply be more of a relief rally than anything else. The... Continue Reading

Buy the Rumor Sell the Fact?

This week, the scheduled Federal Reserve policy meeting is likely to dominate much of the financial headlines. The Fed will be meeting Tuesday and Wednesday, and is expected to hike interest rates again by another 25 bps. Investors will likely be far more focused on the central bank’s plans going forward, however. Right now, the Fed has another 25 bps hike penciled in for November. Although traders are widely expecting action again before the end of the year, there is also a possibility that the... Continue Reading

A Win-Win Situation

The recent surge higher in both stocks and economic growth may very well be unsustainable. In fact, it seems that an increasing number of analysts and prominent investors are now sounding the alarm bells about what could be seen economically next year or the year after. This could potentially put gold into a win-win scenario. Here’s why: Slowing Growth and/or Recession: The economy is, without question, humming along at what is arguably an excellent pace. Jobless claims are the lowest in nearly half a century,... Continue Reading

Let the Coiling Continue

The last several months have unquestionably been challenging for the gold market. Higher stocks, a stronger dollar and overall robust appetite for risk have all played a role in the metal’s lack of upside. Although it is unclear of the market has yet found a long-term bottom, recent price action would seem to suggest that a bottom is at hand, or very close. The market has been consolidating in recent days as it tries to hold the psychologically important $1200 level. The selling pressure appears... Continue Reading

A Prime Example

Last week brought with it numerous geopolitical issues and the highly anticipated central bank symposium in Jackson, Hole, Wyoming that is sponsored by the Kansas City Federal Reserve and takes place each year. Central banks have been a key area of focus for investors in recent months, as many are now in the process of attempting to normalize monetary policies and reign in swollen balance sheets. The Fed’s role is so critical, in fact, that even U.S. President Donald Trump has voiced his concerns over... Continue Reading