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Interest Rates Correlation With Equity Prices? Its Complicated

Interest Rates Correlation With Equity Prices? Its Complicated

Markets were mulling familiar themes last week. Will a wider U.S. twin deficit change the rules for the dollar and treasuries and is elevated volatility here to stay in equities? Judging by last week, the answer would be: probably and yes. The contemplation over these stories, though, were interrupted by politics. Mr. Trump announced announced […]
Initial Coin Offerings: Five Reasons Why They Are A Raging Success

Initial Coin Offerings: Five Reasons Why They Are A Raging Success

Welcome to the cryptocurrency age! We are currently in an era when the modern-day currency is slowly losing its essence. This is all down to the mammoth rise of cryptocurrencies over the past few years. It all kickstarted when the BitCoin was introduced a few years ago. What made this concept so appealing? There is […]
Bear Of The Day: Big Five Sporting Goods (BGFV)

Bear Of The Day: Big Five Sporting Goods (BGFV)

Big Five Sporting Goods (BGFV – Free Report) is a sporting goods retailer in the western US, operating 435 stores in 11 states. They product lines include athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment. Disappointing Results The retailer reported weak results. Net sales for Q4 fell to $242.9 million from $266.3 million […]
The Rising Interest-Rate Trend

The Rising Interest-Rate Trend

The rising interest-rate trend in the US isn’t new and isn’t related to the Fed’s so-called “policy normalization” program. However, it has only just started to matter. That the rising interest-rate trend isn’t new and isn’t related to the Fed’s rate-hiking efforts is clearly illustrated by the following chart. This chart shows that the US […]
Rising Interest Rates A Headwind For Dividend Paying Stocks

Rising Interest Rates A Headwind For Dividend Paying Stocks

Since July 2016 the yield on the 10-year US Treasury Note has increased from 1.32% to nearly 3% today. This doubling of longer-term interest rates is creating a headwind for dividend-paying stocks resulting in their underperformance versus their non-dividend paying counterparts as well as the broader S&P 500 Index. The maroon line in the below […]
Economics Was Invented To Refute Trump’s Tariff Arguments

Economics Was Invented To Refute Trump’s Tariff Arguments

When Adam Smith wrote Wealth of Nations, it wasn’t to refute the “godless socialists” 21st-century Republican voters believe are taking over the world. It was to refute the kinds of protectionist ideas championed by conservatives like Edmund Burke and Alexander Hamilton in Smith’s day, Abraham Lincoln eighty years later, and Trump today. Bastiat remade Smith’s case […]
Short-Term Trading Idea Brent Oil – Looking Down: 50% Downwards Correction Expected

Short-Term Trading Idea Brent Oil – Looking Down: 50% Downwards Correction Expected

Trading opportunities: Since hitting a high of 67.70 USD, the market has transitioned into a phase of downwards movement. Cycles and calculations suggest that the drop from the 13th of February isn’t complete. I reckon that this downwards correction will continue through the 11th of April and stop at around 57.80 USD (50% of the growth from 44.34 […]
AUD/USD Technical Analysis: Likely Scenarios For The Pair

AUD/USD Technical Analysis: Likely Scenarios For The Pair

This will be a major week for the Australian dollar. From a political standpoint, traders will wait for the retaliatory statements from the Australian government after Trump signs in the new policy on steel and aluminum. After this, traders will focus on the interest rate decision and the GDP numbers. On Tuesday, the Reserve Bank […]
The Threat Of A Trading War Continues To Put Pressure On The American Currency

The Threat Of A Trading War Continues To Put Pressure On The American Currency

On Friday, the US dollar weakened against the fears that the introduction of taxes on the steel and the aluminum import in the United States could lead to a global trading war. Canada, the European Union and China have very negatively perceived the introduction of duties and have stated that they may introduce their own […]
Rebalancing The Economy Toward Workers And Wages

Rebalancing The Economy Toward Workers And Wages

Economists have recognized for a long time that in negotiations between employers and workers, the employer has a built-in advantage. John Bates Clark, probably the most eminent American economist of his timeJohn Bates Clark put it this way in his 1907 book, Essentials of Economic Theory “In the making of the wages contract the individual laborer […]