Tag Archive: rising interest rates

The Breakout Has Begun

The stock market has seen a major volatility expansion in recent weeks as declines have mounted. The equity markets are currently grappling with numerous issues that could not only set the stage for the next bear market but could also send stocks decidedly lower in a short period of time. Some of the major catalysts for recent stock selling include the ongoing trade war with China, rising interest rates, geopolitical risks and a partial government shutdown. Investors may now be wondering, however, if they must... 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

Just a Few Things to Consider

Stocks have remained amazingly resilient in recent months, and the current rally in the S&P500 is now the longest on record. Make no mistake, however, the party will not likely go on indefinitely. Indeed, there are numerous issues currently at play that could cause a massive drop in equity markets while sparking what could be the greatest increase in volatility of all-time. Although gold has been on the defensive in recent months, its weakness is likely in direct correlation to higher stocks and increasing economic... Continue Reading

The Next Recession Is Coming

The last several months have seen increasing discussions over the potential timing of the next recession. Many analysts have already been sounding the alarm bells, and some believe that the next recession could be far more extensive and challenging than the last. With the S&P 500 in striking range of achieving the longest bull market ever, there are reasons to be concerned that the market could be at or very near a long-term top. Here are a few issues to consider that could point to... Continue Reading

A Bottom May Be Near

The gold market has not seen a lot of upside in recent months, and during that time investors have become increasingly bearish on the metal. The market has had a lot of headwinds to deal with including rising stocks, a stronger dollar, increasing interest rates and strong investor appetite for risk. Stocks have remained stubbornly strong, while the dollar has seen significant upside as inflation and interest rate expectations have increased. Markets do not typically move in one direction or the other indefinitely, however, and... Continue Reading

Category |

A Buying Opportunity

The gold market has continued to see selling pressure as a combination of bearish factors take a toll on market sentiment. While the recent slide in gold prices may be viewed as “bearish” or a negative by short-term traders, smart long-term investors will likely welcome lower prices. The notion of rising interest rates, a strong appetite for risk and a stronger dollar have all affected gold and hard assets. Sentiment is currently very poor, and the market’s technical posture is also lacking. Key moving averages... Continue Reading

An Expanding Danger

As was anticipated, the Federal Reserve raised the key benchmark rate 25 bps to 1.75-2.00%. The central bank appeared to have a slightly more hawkish tone in its statement, and has made clear that it will hike rates twice more in 2018. The central bank did, however, stick with its previous forecast for three rate hikes next year. Although rates are not likely to get anywhere near levels seen in previous tightening cycles, they are expected to continue to rise gradually. The idea of higher... Continue Reading

Another Reason to Own Gold Now

Weekly jobless claims were reported at 220,000 this week, the lowest reading in several decades. Other key areas of the economy, such as manufacturing and housing appear to be on solid footing while economic optimism remains extremely high. Through all of the recent data and market signals, one thing is clear: Despite still running below the Fed’s desired 2% target, inflation is picking up. Job creation, rising crude oil prices and rising yields seem to back up that notion. The benchmark 10 year note is... Continue Reading

Could a Hard Landing be on the Horizon?

There is no doubt that the economy is on stronger footing than it was a decade ago. Whether or not the current path can be maintained, however, is another question entirely. With improvement in the labor market, a stable real estate market and economic optimism at its highest in some time, you have to wonder if the Fed may need to become more aggressive at some point. New York Fed President William Dudley recently commented on this very issue. In an article from Marketwatch.com, Mr.... Continue Reading

3 Reasons You Should Be Buying Gold Right Now

Although the reasons to buy physical gold are many, there are currently three primary themes that make buying the yellow metal at current levels a potentially great decision. Stocks could finally be on the verge of a catastrophic collapse: The bull market is a decade old-a decade- and is finally showing signs of total exhaustion. With the economy continuing to produce sub-ideal growth and with stock valuations arguably stretched at current levels, the time may be ripe for the next major stock market crash. A... Continue Reading