Tag Archive: inflation

It’ll Keep Going

Recent pieces of key economic data have not painted a rosy picture. ISM manufacturing and services data have both shown significant declines, and the global financial market is now getting increasingly worried about the prospects for a recession in the U.S. Markets are now pricing in another Fed rate cut this month, and the central bank could even allude to further cuts if the data does not rebound. Although the risks of recession do appear to be on the rise, the next major recession could... Continue Reading

Are Hikes Beginning to Hurt?

The subject of the Fed and its plans to continue with gradual rate hikes has been the topic of considerable debate in recent months. Thus far, the central bank has stuck to its guns and moved ahead with more hikes. In fact, the central bank has another hike planned before the end of the year and currently has three more penciled in for next year. It’s no secret that the Fed has drawn some criticism. Even President Trump has weighed in on the issue. The... Continue Reading

Is A Tipping Point At Hand?

In early action on Wednesday, the stock market is getting hit once again, and hit hard. Rising bond yields remain the object of blame for today’s sell-off, and the market is showing some significant signs of cracking. The selling seen last week and thus far today could simply prove to be a small taste of the potential carnage ahead. Higher yields are creating competition for stocks, which have enjoyed a significant, decade-long run due in no small part to a lack of viable alternatives. Given... 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

Take Advantage Now

The gold market continues to remain on the defensive, as prices have not been able to distance themselves from 12-month lows. Weaker crude oil, a stronger dollar, rising yields and higher stocks have all taken a decidedly bearish toll in recent weeks. Selling pressure has seen the metal drop to 12-month lows, while also potentially threatening to take it down even further. Sentiment in the sector is bearish, and could arguably be seeing an extreme level that may not be sustainable. In other words, right... Continue Reading

The Inflationary Effects of a Trade War

Recent dollar strength, stronger stocks and overall robust appetite for risk have all weighed on gold in recent weeks. Despite these headwinds, however, the yellow metal has not succumbed to any significant selling. All of the issues potentially weighing on gold prices currently are likely temporary. Stocks will probably not continue to go up indefinitely, the dollar is likely to roll over again and there will come a point when risk aversion is a major market theme. There is another major issue, however, that is... Continue Reading

Now is Time to Get Ahead of the Curve 

The commodity bull market has seemingly begun. Oil prices are now trading at multi-year highs, with Nymex crude trading over $72 per barrel and Brent crude trading around the $80 level. Crude has been on the offensive even as the dollar index has also moved up to multi-month highs. The strength being seen in oil is likely due to several factors, however, recent economic strength and the potential for lower supplies are two of the main drivers. Some analysts have already begun to suggest that... 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

3 Reasons to Consider Exiting Stocks Now

The stock market seems to keep going and going. The market has had little, if any, in the way of major pullbacks or retracements since the current bull market began about a decade ago. The market seems unable to go significantly lower, and the current level of bullishness borders on the dangerous. Price action like that has been seen in recent months has a tendency to suck investors into the market-especially those that have been waiting for that big “pullback” to get long. As these... Continue Reading

Why You Should Be Watching Oil

The crude oil market has been working its way back higher for some time now. Nymex crude is trading for over $70 per barrel, the highest level since 2014. Brent crude has its eyes on the $76 level. The oil trade could, however, see some exploding volatility in the days and weeks ahead. President Trump has announced that he will make a decision on the Iran nuclear deal made in 2015 this week. Although many have urged the President to remain in the deal, the... Continue Reading