The Dollar Is Having A Reasonably Good Friday
The holiday shutters most markets today. Several Asian markets were open, and equities were narrowly mixed, with Japan and China posting small gains. Most of the other local markets, including Australia, Korea and Taiwan slipped. The US dollar is trading with a firmer bias, but mostly, as one would expect, within yesterday’s ranges. Three observations are […]
The Missing Link
The most important fundamental driver of the gold market that hasn’t yet begun to move in a gold-bullish direction is the US yield curve, represented on the following chart by the 10yr-2yr yield spread. The yield curve is bullish for gold when it is getting steeper, as indicated by a rising 10yr-2yr yield spread (a […]
How To Avoid The Problem Of Short-Termism
If I had to pinpoint the biggest problem for most asset allocators I would probably say short-termism. Short-termism is the tendency to judge financial markets in periods that are so short that it results in higher fees, higher taxes and lower average performance. We’ve become accustomed to judging the financial markets in quarterly or annual periods […]
Economists Increasingly Worried About People Having Too Much Cash
Economists are worried. That’s their second favorite pastime. Their favorite pastime? Making bad economic predictions. The big worry right now in Japan is that cash is piling up in record amounts. No one wants to spend it: Not corporations, not individuals. Given the massive amount of Japanese government debt, highest in the developed world, economists […]
Bear Market Rally?
The rally in the stock market has extended to new recovery highs in March and some are now calling this a bear market rally. I look at some of the top technical and fundamental reasons the market is behaving the way it is. Charts include: large cap stocks, technology stocks, high yield bonds, tips, U.S. […]
US Oil Ends Week Down 5%
Oil prices were down slightly on Thursday, posting their first weekly loss in over a month, under pressure from record high U.S. stockpiles, a strong dollar and weakening equity markets. Despite the stumble, oil prices remain about 50 percent higher from multi-year lows hit in January from glut worries. The declining U.S. oil output and […]
Fragile Five ETFs Not At All Fragile This Year ?
The policy tightening in the U.S. has always been a concern for the emerging market bloc. As we already know, taper talks roiled the emerging markets in 2013 and then kept on disturbing the league occasionally as and when rate hike fears cropped up. This along with the upheaval in the second-largest emerging market economy, […]
Fiscal And Monetary Madness
Global Currencies Madness: When central banks and politicians “manage” global currencies, we can expect: Exponentially increasing debt and currency devaluations Massive inflations and deflationary crashes. Transfer of wealth from the many to the few. Derivatives exceeding $1,000 Trillion and eventually a crash. A mathematically inevitable financial collapse. Monetary and fiscal madness. Booms and busts. Much […]
The Threat Continues: Yuan Weakens For 6th Straight Day – Longest Losing Streak In 2 Years
PBOC fixed the Yuan at its weakest in 3 weeks, pushing the devaluation streak to its longest since early January. However, Offshore Yuan has now dropped over 1.1% against the USD, extending losses for the 6th straight day to 3-week lows. This is the longest streak of weakness in the offshore Yuan since April 2014. It appears […]
Laws Are Only As Good As Enforcement
Photo Credit: Gerard Van der Leun || Personally, I would not have wanted my name on that law This should be short. If you want more, you can read my old piece, “Who Dares Oppose a Boom?” Laws are only as good as those that enforce them. There was no lack of power in the hands of […]
