Category: Financial Markets 2013
The analysis published under this category are as follows.Friday, October 25, 2013
U.S. Dollar's Breakdown, Stocks' Breakout and Implications for Gold / Stock-Markets / Financial Markets 2013
After 12 years of gains, gold has fallen nearly 20% this year. The price of gold has been pressured for much of this year by the view that the Fed would end its stimulus program soon because of strength in the U.S. economy. However, some recent (weaker than expected) economic data, along with the 16-day U.S. government shutdown, have suggested that the central bank may keep its bond purchase in place for longer and increased gold's safe-haven appeal.
What impact did these circumstances have on the yellow metal?
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Friday, October 25, 2013
Gold, Stock Market Investors Time to Sit on the Sidelines / Stock-Markets / Financial Markets 2013
My best guess continues to be that stocks will extend this consolidation on Friday and then deliver one more push higher into the FOMC meeting next week. I expect the Fed will confirm no tapering which will likely trigger a big rally and probably reversal as smart money traders sell into the emotional move. Barring an immediate Fed intervention, that should give us the drop down into the half cycle low.
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Wednesday, October 23, 2013
An Empty Forest Full of Trees / Stock-Markets / Financial Markets 2013
By Grant Williams
ca·tas·tro·phe
n.
1. A great, often sudden calamity.
2. A complete failure; a fiasco.
3. The concluding action of a drama, especially a classical tragedy, following the climax and containing a resolution of the plot.
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Sunday, October 20, 2013
Why The Fed Will Fail and The Cycles Prevail / Stock-Markets / Financial Markets 2013
Despite its intent to boost asset prices and restore the economy, the Federal Reserve has run into a major obstacle in achieving that goal. This obstacle is serving as a reminder that ultimately the long-term natural cycles of inflation and deflation govern the market and that intervention will usually fail.
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Saturday, October 19, 2013
Manipulated Markets Prospects: Gold, U.S. Dollar, Bonds, Equities & Interest Rates / Stock-Markets / Financial Markets 2013
“Bank deposits are not safe which used to be safe. Money in Treasury bills is not 100 percent safe and there is inflation in the system and you would hardly get any interest.
“Bonds are not very safe anymore because eventually interest rates will go up Equities in the U.S. are relatively expensive by any valuation matrix you may use.
(The federal government is) “essentially wasting money left, right and center: Republicans on the military and the Democrats on buying votes with transfer payments and entitlements. The best you can hope for is that you have diversified your portfolio of different assets and they don’t all collapse at the same time.”
“Marc Faber: Pray All Asset Classes Don’t Collapse at the Same Time,”
John Morgan, moneynews.com, 10/15/2013
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Friday, October 18, 2013
Google Super Stock Takes Market To New Highs / Stock-Markets / Financial Markets 2013
Up, up and away.Right behind mighty PCLN, GOOG is closing in on the $1,000 per share club after earning $2.97Bn or $10.74 per $970 share. What? Oh sure, yes, $10.74 is just 1/90th of $970 BUT, keep in mind there are 4 (four) big quarter and 4 x $10.74 is $42.96 and GOOG was expected to earn $43.50 this year anyway and though they were SUPPOSED to make $10.34 so, of course a .40 beat means the stock should pop $10%, right?
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Thursday, October 17, 2013
U.S. Debt Deal Reached, Republicans Got Nothing, Now 90 Days Until Next Crisis / Stock-Markets / Financial Markets 2013
What idiocy!
As I told you yesterday, the damage is done. Extending the crisis past Christmas doesn't make it go away and the Dollar fell 1% today on the "great' news that we "fixed" the debt ceiling. So Congresses "fix" cost you 1% of EVERYTHING you EVER earning in your ENTIRE life. It's all worth 1% less now – happy?
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Monday, October 14, 2013
Marc Faber Warns There Is No Safe Haven Left! / Stock-Markets / Financial Markets 2013
Marc Faber, publisher of the Gloom, Boom & Doom Report, told Tom Keene and Sara Eisen on "Bloomberg Surveillance" today that "there is no safe haven...The best you can hope for is that you have a diversified portfolio of different assets and that they don't all collapse at the same time."
On the debt ceiling debate in Washington, Faber said, " t's basically a dysfunctional government that we have that is far too large that is essentially wasting money left, right and center. The Republicans are wasting money on the military complex and the Democrats are basically buying votes with transfer payments, with entitlement programs, it goes on. It is a huge waste. The problem is that I don't see a solution."
Thursday, October 10, 2013
World Bank Concerned About U.S. Debt Ceiling and Emerging Markets / Stock-Markets / Financial Markets 2013
World Bank President, Jim Yong Kim, joined Bloomberg Television’s Sara Eisen live from the IMF this morning and said he expects staff reductions as the institution seeks to cut its budget by $400 million annually for three years.
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Wednesday, October 09, 2013
Rehypothecation of Collateral / Stock-Markets / Financial Markets 2013
Before you get a headache or a pain in your side, rehypothecation is not as difficult to understand as spelling the word. Definition of 'Rehypothecation':
“The practice by banks and brokers of using, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of borrowing or a rebate on fees.
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Friday, October 04, 2013
The Ultimate Layer of Financial Protection / Stock-Markets / Financial Markets 2013
Recently I spoke with the always-insightful Dennis Miller about the critical importance of internationalizing your retirement savings. It's an uncomfortable fact of life that governments that are desperate for cash inevitably find ways to siphon off the purchasing power of their citizen's retirement savings. Poland, which recently partially nationalized private retirement savings, is just the latest example of this disturbing trend, one that will likely spread to other countries that are in fiscal trouble.
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Wednesday, October 02, 2013
The Shame of U.S. Government Shutdown / Stock-Markets / Financial Markets 2013
Hedge Fund Manager, David Einhorn sat down with Bloomberg Television's Erik Schatzker and Stephanie Ruhle today and discussed the government shutdown, Green Mountain Coffee and Verizon/Vodafone deal.
Einhorn said it is unimaginable for U.S. to default, "Frankly not working this out so the government shuts down is bad enough...It does not seem that they tried to sit down to talk through their differences. That is the tone in Washington. It's a real shame."
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Friday, September 27, 2013
U.S. Fed QE UNTAPER and Ponzi Finance / Stock-Markets / Financial Markets 2013
Tuesday, September 24, 2013
If the U.S. Economy Is Improving, Why Is This Happening? / Stock-Markets / Financial Markets 2013
Michael Lombardi writes:
While the media and politicians tell us we’re in an economic recovery…I keep writing about the slowdown we’re heading towards. How can I say that?
First, take out the stock buyback programs, and you’ll see that U.S. companies are seeing their earnings and revenues grow this year at their slowest pace since 2009. (More on that in today’s “Michael’s Personal Notes” column below.)
Thursday, September 19, 2013
Federal Reserve Surprises Markets with ‘No Taper’ Announcement / Stock-Markets / Financial Markets 2013
The Federal Open Market Committee met on Tuesday and Wednesday and decided not to taper Quantitative Easing (QE) not even by a small amount, so the $85 billion monthly bond-buying program remains in place until further notice.Tapering would have represented a major turning point for the Fed in that it would have signalled the beginning of the end of QE and a reversal of monetary policy which provides by financial stimulus, however, tapering appears to be off the table, at least for the near term. Although the Fed Chairman did say the following:
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Wednesday, September 18, 2013
Unpleasant After-Effects of Prolonged Low Interest Rates Starting to Show / Stock-Markets / Financial Markets 2013
Michael Lombardi writes: There’s a notion among central banks of the global economy that goes like this: if you lower interest rates, you will get economic growth. On the surface, it makes sense; easy monetary policies by central banks are supposed to bring confidence to an economy—they’re supposed to encourage consumers and businesses to borrow, which should translate to more jobs created and an improvement in the standard of living.
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Monday, September 16, 2013
Economic Heebie Jeebies And the Future of Gold / Stock-Markets / Financial Markets 2013
It was, alas, one of those “good news/bad news” kind of week, in that my natural hostility and paranoid towards the monetary insanity of the Federal Reserve did not boil over in some pointless, screaming outburst of outrage.
Hmmm. “Outburst of outrage.” Not bad writing! See? It was THAT kind of week!
On the bad news side, having drawers full of old electronic things lying about, I somehow hit on the doomed-but-desperate plan to assemble some kind of transmitter with which to contact my home planet, wherever that is, by randomly soldering odd pieces of miscellaneous circuit boards together.
Saturday, September 14, 2013
Self-Reliance Investing – Key to Profit & Protection – Part I / Stock-Markets / Financial Markets 2013
“Collective belief can create its own reality, and at least for the past few years, collective belief is that Fed actions simply make stocks go up, and so they have. The problem is that this outcome is based almost wholly on perception and confidence bordering on superstition – not on any analytical or mechanistic link that closely relates the quantity of monetary base created by the Fed to the equity prices (despite the correlation-presumed-to-be-causation between the two when one measures precisely from the 2009 market low). Some of the deepest market losses in history have occurred in environments of aggressive Fed easing.” John Hussman, Hussman Funds, September 2013
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Friday, September 13, 2013
How Gold, Oil, and Syria Really Mix… Plus "3 Strikes Against Apple" / Stock-Markets / Financial Markets 2013
Keith Fitz-Gerald writes: The markets are very complicated at the moment, which is why now's an ideal time to reach into the Money Morning Mailbag and address your concerns.
The goal here is simple: To provide understandable, actionable, and, of course, profitable answers to your thoughtful and extremely insightful questions.
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Wednesday, September 11, 2013
Three "Dead Money" Investments, Plus One "Living Large" / Stock-Markets / Financial Markets 2013
Robert Hsu writes: Yesterday we looked at what may now be the single greatest risk to your retirement dreams - a seemingly benign 1% move in the 10-year Treasury yield. (See Part I.)
So now I'm going to show you what to do about it...
Remember, if we're going to keep increasing our wealth at a significant pace, we need to make a big adjustment.
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