Friday, February 24, 2017
Gold, Second Fed Hike and Interest Rates / Commodities / Gold and Silver 2017
By: Arkadiusz_Sieron
The narration of reflation and ‘Great Fiscal Rotation' imply that the Fed will hike interest rates in a more aggressive way in a response to accelerated growth and higher inflation. We have already covered the Fed's likely policy in 2017 in the previous edition of the Market Overview, but let's discuss the impact of higher interest rates for the U.S. dollar and gold once again. It is widely believed that higher interest rates are bullish for greenback and bearish for the yellow metal. Is that really so? Some analysts do not agree with that opinion, pointing out that the U.S. dollar did not rally during Fed tightening cycles. Therefore, the hawkish Fed may be actually good for gold, they argue.
Friday, February 24, 2017
The Whole US Economy Hangs In The Balance / Economics / US Economy
By: John_Mauldin
I have talked with many of the actors in the tax reform process—both in Congress and in think tanks. These discussions have served as the basis for my recent writing in Thoughts From the Frontline (subscribe here for free).
I’ve seen one point of agreement—the tax system must be massively reformed. That point, sadly, is where agreement ends.
Tax reform ideas usually fail because the status quo gives everybody some kind of perceived benefit. In reality, the benefit may be worth less than people think. But it’s preferable to the uncertainty of a new system.
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Friday, February 24, 2017
Bitcoin Price Hits Record High! / Currencies / Bitcoin
By: Jeff_Berwick
Bitcoin has just smashed through its all-time high in US dollar terms.
The US dollar was the last all-time fiat currency to crack as bitcoin has been hitting all-time highs in every other government/mafia mandated currency over the last few years.
On CoinDesk bitcoin hit an all time high of $1206.60 which is the highest it’s been since Mt. Gox in 2013, which doesn’t count, because it was likely inflating bitcoin prices before it was shut down.
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Friday, February 24, 2017
Another Stock Market Bubble? Bring it On! / Stock-Markets / Stock Market 2017
By: Clif_Droke
Anytime the Dow makes a new high you can be reasonably assured of hearing the B-word bounced around in the media. Memories of the last bubble are still vivid and painful enough to trigger flashbacks of the bubble's collapse. It's only natural then that investors fear a return of irrational exuberance. Despite these fears, the evidence of a newly formed bubble is surprisingly lacking, as we'll uncover here.
Friday, February 24, 2017
Energy Fuels Provides 'Strong Leverage to Potentially Increasing Uranium Prices' / Commodities / Uranium
By: The_Energy_Report
Uranium has risen 30% from the very low prices of late last year and a trio of analysts agrees that Energy Fuels is in position to take advantage of a rising price environment.
Friday, February 24, 2017
SPX Bounces at the Trendline Again / Stock-Markets / Stock Market 2017
By: Anthony_Cherniawski
SPX appears to have completed its Micro-Wave b at the trendline and now may be ascending to the final high. The Cycle top is now at 2375.46, so we may reasonably assume that SPX may go at least that high. The upper trendline is likely to be about 10 points higher, should it choose to go there. This rally is taking a long time to roll out.
Friday, February 24, 2017
What Investors Need To Know About U.S. Money Market Funds? / Stock-Markets / Financial Markets 2017
By: Chris_Vermeulen
Why Low Risk Does Not Equate To Risk Free!
Charles Schwab has informed its’ clients that “at least 80% of the fund’s net assets will be invested solely in U.S. government securities…”. Schwab automatically assumes that all clients affected by this change will accept: “if you are in agreement with this change in your cash feature, no response is required from you. They consider a non-response from its’ clients to be notice. “Those who disagree have the “option” of either sweeping their cash into the corporate bank exposing them to greater risk. They add “you also have the right to close your brokerage account(s) without penalty at any time.”
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Friday, February 24, 2017
When Was America’s Peak Wealth? / Politics / US Politics
By: Raul_I_Meijer
A few days ago, I wrote an essay entitled “Not Nearly Enough Growth To Keep Growing”, in which I posited, among many other things, that “..the Automatic Earth has said for many years that the peak of our wealth was sometime in the 1970’s or even late 1960’s” along with the question “..was America at its richest right before or right after Nixon took the country off the gold standard in 1971?”
That same day, I received an email from (very) long time Automatic Earth reader and afficionado Ken Latta, who implied he thought the peak of American wealth was even earlier. That turned into a nice conversation. I really like the way his head works to frame his words. And Ken knows what he’s talking about by grace of the fact that he was a witness to it all.
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Friday, February 24, 2017
The Oscars – Worth Their Weight in Gold? / Commodities / Gold and Silver 2017
By: GoldCore
- 89th Oscars to air this weekend
- Oscars have been dipped in 24 karat gold since 1929
- If the Oscars were made of solid gold they would weigh 330 ounces
- 330 ounces of gold is worth $408,210 at today’s prices (nearly €400k & £330k)
- Only some $630 worth of gold in Oscar statue
- Oscars cannot be sold due to regulations
- Steven Spielberg keeps his gold Oscar with the Academy for ‘safe-keeping’
- Shows importance of owning gold in safest ways
- Price of gold has climbed from $20.67 since the first Oscars ceremony to over $1,237 today
Friday, February 24, 2017
California, Nestle and Decentralization - CalExit / Politics / US Politics
By: Antonius_Aquinas
Nestle USA has announced that it will move its headquarters from Glendale, California, to Rosslyn, Virginia, taking with it about 1200 jobs. The once Golden State has lost some 1600 businesses since 2008 and a net outflow of a million of mostly middle-class people from the state from 2004 to 2013 due to its onerous tax rates, the oppressive regulatory burden, and the genuine kookiness which pervades among its ruling elites.* A clueless Glendale official is apparently unconcerned about the financial repercussions of Nestle’s departure saying that it was “no big deal” and saw it as an “opportunity,” whatever that means!
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Thursday, February 23, 2017
Bitcoin Breaks Records and Sits at Cusp of All-Time High…Here’s Why / Currencies / Bitcoin
By: Jeff_Berwick
We have been the biggest proponent of bitcoin in the financial space since it was $3 in 2011.
It now sits just a few dollars from its all-time high (ex-Mt. Gox which wasn’t a legitimate high) of $1,150. And, bitcoin has remained above the $1000 price level for a record stretch of time - seven days!
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Thursday, February 23, 2017
Stock Market Mixed Volatile Day / Stock-Markets / Stock Market 2017
By: Harry_Boxer
The stock market indices had an interesting, but volatile session today, coming down sharply at the opening, testing support, and when that held they rallied to midday. They pulled back in the afternoon, backed and filled, and finished not far from all-time highs on the Nasdaq 100. Although the S&P 500 failed, it did make a run at it earlier in the day.
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Wednesday, February 22, 2017
Is it Stock Market Autumn 2007 All Over Again? / Stock-Markets / Stock Market 2017
By: Graham_Summers
While the financial world continues to delight in Trump Mania, the US economy has rolled over into recession.
I realize this sounds completely insane. After all, stocks are at new all time highs and a full 61% of Americans view the economy as “strong.”
Unfortunately, this is perception, not reality. When it comes to the economy today, Americans are like the guy who hasn’t realized the party is over, and keeps dancing while others are already starting to leave.
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Wednesday, February 22, 2017
Market Investments - No One Will Ever Care As Much as You / Stock-Markets / Investing 2017
By: Rodney_Johnson
I’m moving. And it’s a royal pain.Beyond the hassle of physically getting all of our stuff from one state (Florida) to another (Texas), I have to deal with a mortgage lender on the new house. At first, against my better judgment, I called Bank of America.
As I told the guy I spoke with, I’ve hated the bank for the entire 23 years I’ve been with them. There’s been way too many hassles for what should be simple business transactions.
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Wednesday, February 22, 2017
The Best Reasons to Buy Gold in the Age of Trump / Commodities / Gold and Silver 2017
By: MoneyMetals
Notwithstanding the strong demand for gold and silver globally, buying activity in the U.S. retail market for physical bullion has fallen noticeably in the wake of Donald Trump’s election victory. And retail selling in the U.S. has increased. The bullion markets have entered a new phase.
The two terms of President Obama included the aftermath of the 2008 financial crisis, zero interest rate policy from the Federal Reserve, and multiple rounds of Quantitative Easing. Reasons to buy silver and gold were plentiful. Today, the reasons to diversify into gold and silver are as strong as ever, but they're perhaps less obvious to the average retail buyer in the U.S.
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Wednesday, February 22, 2017
Silver, The Return of Stagflation / Commodities / Gold and Silver 2017
By: DeviantInvestor
Steve St. Angelo wrote an insightful article relating the silver to gold ratio to the S&P 500 Index. I encourage you to read his articles and analysis.
My commentary on the silver to gold ratio:
The following graph shows the SI/GC ratio versus the S&P500 index beginning in August 1971 when President Nixon severed the final gold backing of the US dollar. Currency in circulation, debt, consumer cost of living, and most prices including gold, silver, crude oil, and the S&P rose in devalued dollar units.
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Wednesday, February 22, 2017
Why EU BrExit Single Market Access Hard line is European Union Committing Suicide / Politics / BrExit
By: Nadeem_Walayat
Some 8 months on from the British people voting against the interests of the establishment elite, most notable of which was for the emergence of an undemocratic european super state that further concentrated power into their own hands to the detriment of ordinary people. Britain is counting down to the triggering of Article 50, the formal request to LEAVE the European Union within a technical 2 year time limit for completion of but in practice may extend to several more years beyond. However, the EU elite even before the June 23rd 2016 vote, have been persistently warning the British people that they will be punished for voting for freedom from the EU super state, where the unsaid reason being so as to prevent a total collapse of the European Union as other states take Britians cue to rush for exit freedom.
Wednesday, February 22, 2017
Why the US Democratic Party Is Dead / Politics / US Politics
By: Jesse
One more time.
My fear is that well-meaning people will focus on 'getting rid of Trump,' without considering what sort of leadership will replace him.
Hillary Part Deux? Or some other corporatist stooge from the GOP who runs a smoother, more polished con on the working class?
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Wednesday, February 22, 2017
There is No Market, Only Trump / Stock-Markets / Financial Markets 2017
By: Graham_Summers
Those who lived through the ‘80s will undoubtedly remember the famous scene from the original Ghostbusters in which Bill Muray’s character goes to see Sigourney Weaver.
Unbeknownst to Murray, Weaver’s character has been possessed by a demonic spirit. And every time he states to her, “I want to talk to Dana” (the name of Weaver’s character in the movie), she responds, “There is no Dana, only ZUL!!!”
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Wednesday, February 22, 2017
Gold: Short End US Rates Matter More Than Long End Real Yields / Commodities / Gold and Silver 2017
By: Bob_Kirtley
In the years following the GFC, short end yields in the US were contained for an extended period of time as the Fed committed to keeping rates on hold. Given the static nature of the short end, and the shift of monetary policy implications further out the curve through QE programs, long end US rates became the focus. When discussing the drivers of gold prices, long end US real rates (the yield on inflation protected bonds) was the critical factor. However over the past couple of years, the Fed has hiked rates twice, and we now have live meetings with an active short end. This has reduced the impact of long end real rates on gold, and instead shifted the focus to the short end. We now form our view on gold prices overwhelming based on short end rates, as opposed to long end yields. Our bearish view on gold prices is derived from a Fed hike in June.