Category Archive: Finance, No picture
USD/CAD Daily Analysis – Friday, Sept. 28
USD/CAD extended its upside movement from 1.2884 to as high as 1.3081, breaking above 1.3064 resistance. Further rally could be expected after a minor consolidation and next target would be at 1.3200 area. Near term support is at 1.2980, as long as this level holds, the uptrend will continue.
EUR/USD Suffers On Italy And The Fed, Bears In Control
The Italian government approved a deficit of 2.4%, breaching EU rules. A busy day of indicators ends the quarter as the Fed is still heard. The pair is entering oversold conditions, but the bears are in control. The EUR/USD is trading closer to 1.1600, extending the losses seen on Thursday. The Italian government approved a […]
‘We Do Not Think Markets Will Appreciate This’: Italy’s Populists Successfully Blow Up Budget
A deal has been reached by the full government on 2.4% [of GDP]. We are satisfied. It’s the budget for change. That’s a quote from a joint statement issued by League leader Matteo Salvini and Five Star chief Luigi Di Maio and it’s characteristically misleading. Italian assets came under pressure on Thursday when Salvini and Di Maio made […]
The Case For The Federal Reserve To Revalue Gold To $5000
Mark Valek, partner at Incrementum AG and co-author of the In Gold We Trust Report, comes on SBTV to discuss reasons for holding gold today and the case for the Federal Reserve to revalue US gold holdings to $5,000/oz – an idea proposed by Jim Rickards. We get Mark’s thoughts on how the world will look like with $5,000 gold. […]
AUD/USD Daily Analysis – Friday, Sept. 28
AUD/USD broke below 0.7236 support, suggesting that the upside movement from 0.7085 had completed at 0.7314 already. Further decline could be expected in a couple of days and next target would be at 0.7150 area. Near term resistance is at 0.7250, as long as this level holds, the downtrend will continue.
EU Holds Emergency Meeting To Prepare For No-Deal Hard Brexit
After the EU rebuked Theresa May’s Chequers proposal, the chance of a hard Brexit rose sharply. The EU is now preparing. The Financial Times reports EU Prepares Five-Day Plan in Case of No-Deal Brexit. Similarly, Bloomberg says EU Envoys to Discuss Emergency Preparations. Neither article said much of anything beyond the title and subtitle. Eurointelligence had much more […]
AI And The New Health Care
The first major industry to be fundamentally disrupted by artificial intelligence will be health care, America’s last 19th century industry. Major diseases are being cured at such a dramatic pace that if you can survive the next decade chances are you can live forever. DNA is the software of life and spending $3 billion to […]
UK Financial Services – Opportunities And Threats Post-Brexit – Short-Term Pain, Long-Term Gain?
In a departure from the my usual format this Macro Letter is the transcript of a speech I gave earlier this week at the UK law firm Collyer Bristow; Thomas Carlisle may have dubbed Economics ‘the dismal science,’ but I remain an optimist. Setting aside the vexed question of whether Brexit will be hard, soft […]
Agricultural Exports Plunge, Trump Accuses China Of Meddling In US Elections
The census dept reports the trade deficit widened by 5.3% with ag exports down 9.5%. Trump was already annoyed. The Census Bureau advance report on International Trade in Goods shows the international trade deficit was $75.8 billion in August, up $3.8 billion from $72.0 billion in July. Exports of goods for August were $137.9 billion, $2.3 billion […]
Why A 15 P/E Ratio Represents Fair Value For Most (Not All) Companies
Introduction One of my favorite Warren Buffett quotes is “investing is most intelligent when it is most businesslike”. The reason this quote resonates so much with me is because I believe it represents the essence of value investing. To me, value investing is about positioning yourself as a shareholder/owner/partner in a wonderful business that you […]
