Should the USD break out from its 2005 to present bearish trend, we should see some significant developments in inter-market relationships. For starters, the relative performance of U.S. stocks relative to the MSCI World Stock Index Excluding the U.S. shows a strong correlation to the USD Index.
The terms of the debate have shifted. The issue now is when does the Fed hike rates next year. And further, how will the U.S. stock and bond market respond. This Great Graphic appeared in the Wall Street Journal, and was tweeted by Pedro da Costa.
Gold is still in a downtrend, if you examine a chart of gold prices measured in dollars. But gold in euros looks much stronger, and that’s actually a bullish condition, eventually. People often ask at what dollar price is gold likely to find support or resistance.
After bottoming out in 2012, America’s housing market has climbed to a 6-year high and it is probable that the 2006-record will be surpassed within the next 2-3 years.
Once breaking through its eight year declining trend from 1989 to 1997, the dollar rallied 50% until finally peaking with the tech bubble. Should the USD break out this time around, it is quite likely to have a strong bullish run going forward.
The beginning of the new school year heightens the anxiety over the rising cost of higher education. The cost of a college education is increasingly beyond the means of average American family. Tuition has risen faster than inflation, student debt has soared and jobs are difficult to secure.
All the chatter from the Fed about interest rate levels, forward guidance, tapering, etc. is largely noise. In a consumption driven economy, wage growth is the accelerant of consumption growth, not rising equity and real estate prices through the illusory "wealth effect".
I will tell you there has only been one false signal from Dow Theory (DT) over the past 15 years and that was a false “sell signal” generated by the Flash Crash in May of 2010; and, that was quickly reversed with a “buy signal.”
The latest battleground for U.S. President Barack Obama’s so-called war on coal isn’t even in the lower forty-eight states. It’s across the border in British Columbia’s densely populated lower mainland where a recent proposal to...
Mario Draghi came as close to the “full Monty” as he possibly could by cutting interest rates 10 basis points to a measly five basis points, and increasing the negative deposit facility rate to -20 basis points. In addition, he promised to begin buying about $400 billion worth of asset-backed securities in about a month.