Bad news was good news on Wednesday as minutes from last month’s Fed meeting gave traders reason to expect a slower liftoff on rate hikes in light of global growth concerns and a strengthening dollar.
Do you remember the old Soviet Union? Dubbed as "The Evil Empire" by Ronald Reagan in 1983, it disappeared in a puff of smoke in 1991, crushed under a mountain of debts. The origins of the financial collapse of the Soviet Union are rather well known: it was related to the fall of the oil prices which, in 1985...
When it comes to the stock market, there are some justifications for the level we are at. My first response to those who don't believe we've had any type of recovery, or that the stock market shouldn't be this high, is to bring up corporate profits.
Near-term caution on the market was echoed again by our most recent technician on the show, Louise Yamada, as the major indexes attempt to stabilize. She sees “continued deterioration” in a number of key indicators beyond what we’ve seen so far this year and believes this may be the start of a cyclical correction of around 10%.
The ongoing strengthening of the U.S. dollar could shift the FOMC further into dovish territory. While the labor situation continues to improve, the dollar's recent appreciation has contributed to declines in inflation expectations (based on TIPS breakevens) to multi-year lows.
We had an interesting line-up of guests and topics this week for our premium channel: Ross Hansen discussed gold and our slow move towards a cashless society, Urban Carmel talked about the tech bubble and not to expect such euphoria again, Marc Chandler talked about a multi-year bull market in the dollar, and, lastly, Dan Steffens addressed the energy markets.
Gold experienced a spectacular bull market run from its low at $250 an ounce in 2001 to its peak above $1,900 an ounce in 2011. Its long bull market was largely supported by expectations that the Fed’s easy money policies would create spiraling inflation...
In May we started a recurring monthly review of all the main economic data. At the time, the consensus view was that growth in wages and employment were accelerating and that this would lead to a meaningful increase in inflation above the Fed's 2% target. So far, this has been wrong.
All of the money created by the world’s central banks is looking for a home where it will earn a return — without being eroded by inflation. And right now, its best option is to buy assets denominated in U.S. Dollars.
Solar energy could be the world’s largest source of power by 2050, providing more than a quarter of the Earth’s energy, according to the International Energy Agency (IEA).