Category: Financial Markets 2015
The analysis published under this category are as follows.Thursday, June 18, 2015
Fed Cracking the Whip will no longer work to keep the tiger sitting on its stool / Stock-Markets / Financial Markets 2015
Yesterday’s Fed announcement is a distinct break with the past and a watershed moment for the markets psychologically. The Fed will no longer be able to simply crack the rhetorical whip in order to keep the market tiger sitting on its stool. We will probably get a taste of what this all means in the near term, but, in my view, the Fed will find itself on the defensive with little left in the quiver, save the ultimate rate hike, to discourage speculative bubbles. Since it will be hard-pressed to actually snap the whip on Wall Street’s nose (in the form of aggressive rate hikes), the door is open to all sorts of renewed reckless behavior – a hey day for speculators of every description until the bubble ultimately bursts. The importance of a hedge in gold is now more important than ever.
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Thursday, June 18, 2015
Piston Hurricane, Parable of the Broken Window / Stock-Markets / Financial Markets 2015
By Jared Dillian
An old friend from the Coast Guard visited me over the weekend. He is retired and now works as an emergency planner. If there’s one thing government folks do, it is plan. But many times I’ve seen plans go out the window when emergency strikes and people start to improvise. Or maybe the planned-for emergency never materializes. Maybe you get a different emergency you didn’t plan for. The anarchist in me says that plans are useless. But I agree that it’s good to think about these things ahead of time.
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Tuesday, June 16, 2015
What Is The Next Big Move In The Markets? / Stock-Markets / Financial Markets 2015
Markets typically move in waves. For secular investors, the long waves with a duration of 6 months to 6 years are important. However, the 3 to 6 months waves convey information about the secular strength, and that is why we focus on the multi-month trends.
We believe that markets today are preparing for new trends. We rely on intermarket chart analysis to assess the highest probability moves, because intermarket dynamics sow the seeds for market specific trends.
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Friday, June 12, 2015
Cyberwarfare Threat To Websites and Financial System / Stock-Markets / Financial Markets 2015
- Legacy of stuxnet is risk posed to technology dependent world
- 20 countries have launched cyberwarfare programmes since exposure of stuxnet in 2010
- Stuxnet virus targeted safety mechanisms in Iran’s nuclear reactors in 2010
- Virus launched to sabotage Iran’s nuclear program was also used for mass spying
- All types of digital systems at risk, including financial, banking and gold providers
- Direct ownership of physical gold, unlike digital currency, not vulnerable to cyber warfare
Thursday, June 11, 2015
The Two Things Every Investor Needs to Know About The War on Cash / Stock-Markets / Financial Markets 2015
For six years straight, the Fed has been trying to “trash” cash.
First it cut interest rates to zero… making it so that savings deposits produced almost nothing in the way of interest income. Consider that at current rates, a retiree with $1 million in savings earns a measly $2,500 per year in interest income.
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Tuesday, June 09, 2015
Time to Move Capital into Next Bull Market – Part I / Stock-Markets / Financial Markets 2015
If you remember the dot com bubble as clearly as I do and are a technical analyst then you will recall the month which the NASDAQ broke down and confirmed a new bear market has started. The date was November of 2000.
You may be wondering why I bring this up. What do tech stocks have to do with commodities?
Good question because they have nothing in common. But the key here is that when a bull market ends in one asset class that money is shifted into another. That money moved into commodities and resource stocks and in a big way.
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Thursday, May 21, 2015
Grexit or No Grexit, Get Ready for The Next Big Move in The Markets / Stock-Markets / Financial Markets 2015
It is increasingly looking like a Greek IMF default is on the cards. Regardless some key markets are poised for big moves. Let us take a look at the Euro first. The Euro has been breaking down from it's recent highs near the 1.15 zone. It appears to be poised for a big move and could head towards either 1.08 or 1.13 depending on Greece.
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Wednesday, May 20, 2015
“Sell In May and Go Away” Might Be a Good Idea for Conventional Assets / Stock-Markets / Financial Markets 2015
Clint Siegner writes: Volatility in the currency markets, bond markets, and stock markets likely has a lot of people on Wall Street feeling a bit worn out. Taking a summer vacation in the Hamptons might just be their best idea.
The coming months promise to be anything but quiet and predictable. Here are a couple of items that may yield profound implications for stock, bond and currency investors before summer ends...
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Monday, May 18, 2015
The State of the Global Markets 2015 - 53 Page Report / News_Letter / Financial Markets 2015
The Market Oracle Newsletter Feb 26th, 2015Issue # 3 Vol. 9
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Monday, May 18, 2015
U.S. Dollar Impact on Stocks, Oil, Gold and Silver / Stock-Markets / Financial Markets 2015
The 1st major corrective phase in almost 10 months for the U.S. dollar continues to unfold. With the US$ declining 7.5% since March, it has provided a boost for many global currencies and a much needed lift for commodity bulls.
The dollar's drop has escalated the Euro by almost 10%, lifted the British Pound by 8%, raised the Australian dollar by 6.6% and increased the value of the Canadian currency by 6.4%.
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Wednesday, May 13, 2015
Financial Markets - There Is No Silver Lining / Stock-Markets / Financial Markets 2015
Rodney Johnson writes: As I read the news and watch the markets, I’m struck by the yawning difference between what’s going on with the economy and what is happening with equities.
I know the worn out arguments.
People are buying stocks because they don’t have many choices. That’s fair, to some extent. The return on stocks (dividends, expected earnings growth) is higher than the interest paid on bonds.
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Tuesday, May 05, 2015
Mice, Mazes & Investor Perception Management / Stock-Markets / Financial Markets 2015
Confidence in retirement investing is once again soaring among the general public. According to a recent survey, those who own retirement accounts are feeling almost twice as confident about their ability to retire and what their standard of living will be in retirement than they were two years ago.
At the same time, a well known and highly sophisticated investment executive has recently semi-retired at age 56. And now that this Oxford economics PhD is managing his own retirement portfolio instead of being CEO of one of the largest investment companies in the world, he isn't buying stocks, he isn't buying bonds – and indeed he is running away from conventional retirement investments as fast as he can.
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Monday, May 04, 2015
This Financial “Seismograph” Signals A Monetary Earthquake / Stock-Markets / Financial Markets 2015
Stock markets in the U.S. are trading approximately 2% from their all-time highs, the German DAX has slightly retraced from its all-time highs, the Nikkei index in Japan has almost surpassed its 2000 highs in recent days, the Shanghai stock index used to be a laggard but is making up at an incredible pace (currently trading at 7-year highs). Indeed, it feels like nothing can go wrong.
We are not yet in bubble territory, and the market is not setting up for an implosion as it did in December 1999 or July 2008. However, we are in the midst of a monetary bubble, driven by an explosion of the monetary base and an implosion of interest rates. Paper assets, as opposed to hard assets, have been pumped up by the liquidity that is being funneled into the economic system and the markets.
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Sunday, April 26, 2015
Stock Market, Silver: Week in Review / Stock-Markets / Financial Markets 2015
From now on, I’m including silver in my updates. There are important issues on the horizon that will involve silver to a greater degree. One of those issues is: J.P. Morgan is accumulating physical silver like there’s no tomorrow; another is: silver is important and sensitive to commodity price changes as well as a hedge against adversity (gold is a better hedge against adversity than silver, but silver is coming into the forefront for other reasons, which we will look at in the coming updates).
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Thursday, April 23, 2015
Stocks and Bonds Seven Year of Negative Returns; Fraudulent Promises / Stock-Markets / Financial Markets 2015
It is extremely refreshing to see a large, prominent, and historically accurate fund manager lay it on the line.
GMO does that quarter after quarter, with no-nonsense projections.
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Monday, April 20, 2015
Financialization Sacrifice and Awakening / Stock-Markets / Financial Markets 2015
Former Federal Reserve Chairman Ben S. Bernanke has come out of the closet with a publicity campaign aimed at defending his policy and, by proxy, the entire central banking complex diaspora. No doubt he will temporarily succeed in the minds of many across the political spectrum. But at the margins, there are always unintended consequences.As Fed chair, Bernanke played his role as the straight man elegantly, but it was script nonetheless — a massive well documented childhood fiction. From the blatant disregard for the breadth of the crisis on the eve of its unfolding, to his nearly unflinching projection of ‘gold as tradition’, the depth of misdirection and betrayal will be explored for years before the veil is lifted on the secrecy of the central banking edifice.
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Thursday, April 16, 2015
Won't Be Contagion with 'Grexit' Greece Euro-zone Exit / Stock-Markets / Financial Markets 2015
Stan Druckenmiller, the Chairman and CEO of Duquesne Family Office, sat down with Bloomberg Television's Stephanie Ruhle to discuss China's economy and stock market, Greece possibly exiting the euro and the concern over a contagion in the region.
On an interest rate increase, Druckenmiller said: "My fear is we’re not going to see anything for a year-and-a-half because they set up metrics eight or nine months ago…I have no confidence whatsoever that you’re going to see rate hikes in September or December or whenever because when they lay out metrics and then they change, and then they change again, and then they change again, who knows where -- when they’re going to go."
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Thursday, April 16, 2015
A Secular look at USD and USB / Stock-Markets / Financial Markets 2015
A look at the monthly chart of USD reveals the backdrop for my analysis and conclusions.
First, the rally may be seen as a Cycle degree Wave II.
Second, the 50% Fibonacci retracement value of Cycle Wave I happens to be 100.87. Note how close the high came to this.
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Monday, April 13, 2015
Why Markets Ignored Weaker Payrolls / Stock-Markets / Financial Markets 2015
For so many years markets have been used to focusing overwhelmingly on US employment, with the Fed emphasizing that return to full employment was key to their monetary policy plans. However, with employment data printing strongly for some time now the focus has shifted away from employment, meaning that the monthly NFP print that traders had been living and dying by is no longer as relevant. The disinflationary impact of lower energy prices and the lack of wage inflation is now the main focus for the Fed, and therefore those factors have replaced NFP as the key metrics that set market tone.
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Wednesday, April 08, 2015
Gold, Crude Oil, Stocks & Bonds Four Month Markets Forecast / Stock-Markets / Financial Markets 2015
Everyone is looking for the holy grail of the financial market which will tell what will happen next in stocks, commodities, bonds etc… Knowing that the holy grail of trading does not exist I am going to step out on a limb and share my four month stock market forecast along with commodities and bonds.
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