Tag Archive: GDP

Leading Indicators Decline

According to a report by marketwatch.com, leading indicators declined by .1% in December in what may be viewed as another sign of a slowing U.S. economy. Of note is the fact that the index fell in two of the final three months of 2018, quite possibly due to the current slowdown gathering steam. The latest disappointing economic report is just another in what has seemingly become the trend of late. Several key components of the economy, especially in the manufacturing sector, have been showing weakness... Continue Reading

What is Oil Telling the Markets?

The last several weeks have seen renewed stock market volatility as investors contend with the ongoing trade war with China, rising rates and the highly anticipated midterm elections. The elections have now come and gone, however, the other factors remain a source of concern for investors. With so many potential distractions, it is easy to see why recent price action in the oil market has not gotten too much attention. Although the market’s recent slide has been mentioned here or there, the recent declines could... Continue Reading

Will The Fed Provide More Clarity?

The Federal Reserve is set to complete its latest policy meeting on Wednesday afternoon. Although no action is expected from the central bank at this meeting, the markets are expecting the bank to reiterate its previous stance. The next action from the Fed is very likely to occur in September, with another possible hike later in the year. Some have recently, however, called into question the need for another two hikes this year. Recent data suggest that the U.S. economy is humming along nicely, and... Continue Reading

One Step Closer to an All out Trade War

Stocks are taking it on the chin in early action Tuesday, with the Dow Jones at one point in early action trading lower by over 400 points. The ongoing escalation in trade relations between the U.S. and China has set the tone for the day, and investors appear to be increasingly aware of the risks that a full-blown trade war could pose. In the latest salvo, U.S. President Donald Trump has said he would consider additional tariffs on another $200 billion worth of Chinese goods... Continue Reading

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Is the EU Headed For More Trouble?

Just a few years back, the EU, and Greece specifically, dominated the financial media as the nation headed for a major default and bankruptcy. Sovereign debt issues have been an area of focus in the region for some time, and there has been ongoing discussions about the health of the union for years. Those discussions are likely to pick up in pace once again, as recent developments in Italy are a major cause for concern. The country is headed for new elections later in the... Continue Reading

The Dollar Rally Won’t Last

The Dollar Index has been on a tear in recent weeks, gaining considerable ground against the euro and other currencies. Although the currency is not the primary catalyst for changes in the price of gold and other hard assets, it does have a major influence on commodities and assets that are denominated in dollars. Some analysts have suggested that recent dollar strength has been behind some moderate weakness in gold. While that may be true, to an extent, the rally in the greenback is likely... Continue Reading

Global Debt Has Reached a New High

According to the IMF, global debt has reached a new peak. Not only that, but according to the fund, there are three countries responsible: The U.S., China and Japan. These nations account for over 50% of total global debt, and China alone is responsible for about 75% of new private debt since the financial crisis. The numbers are nothing short of staggering: The IMF’s fiscal monitor reportedly stated that total debt reached $164 trillion in 2016. That figure, incidentally, represents 225% of global gross domestic... Continue Reading

Is Bond King Bill Gross Saying Go For Gold?

Stocks are at fresh all-time highs and investors seem to be feeling better about the economy. While investors’ sentiment may not have yet reached the euphoric stage, stocks could potentially have some room to run higher. Or could they? While stock bullishness appears to still be at healthy levels, some investors may be questioning just how much further the current rally can run. Some investors, like Janus Capital Group portfolio manager Bill Gross, feel that perhaps investors should be cutting their risk. Of particular note... Continue Reading

A Black Hole of Debt

In the German language, the word for debt – ‘schuld’ – means the same thing as guilt. Someone who has a tremendous amount of guilt would seek forgiveness. So the term many economists are now using – forgiveness – in regards the world’s growing debt problem would seem appropriate. But this term does not encapsulate the crises that would result if a large portion of debt was erased by policy makers. Until recently, the term ‘debt forgiveness’ in regards to government and corporate debt was... Continue Reading