The Dollar popped as Fed President Robert Kaplan contradicted Fed Chair Powell’s stance on tapering, saying there are imbalances and excesses in US Financial Markets and Real Estate, that warrants tapering sooner rather than later.
The Federal Reserve kept interest rates close to zero and kept their bond purchases the same as widely expected. Here are the key points from yesterday’s meeting.
The Bank of Canada becomes the first central bank to taper and signal an exit from stimulus. Here are the important highlights. But with the new Federal budget forecasting deficits, can interest rates move higher?
It seems like the inflation genie is out of the bottle. And as many analysts say: once it is out, you cannot get it back
The top trade on Wall Street for years has been to go long US Stocks, and go short the VIX. It works out well when Stocks continue their uptrend. When Wall Street closes their shorts, we see volatility spike. The technical break on the VIX hints to more Stock Market gains.
Oil prices remain a large driving force in determining where the US stock markets want to go. As soon as we hit our $66 target zone we got hit in all directions with events. The Suez Canal blockage being the most talked about. Inflation is a term used a lot, so let me introduce you to another way to look at inflation. Let’s go down the rabbit hole together.
A Stock Market Crash? The Russell 2000 fits that bill, and is hinting to the end of its bull run. The real stories of the week have to do with the commodity and currency markets. Oil is what everyone is talking about, but the Dollar run is of much importance. Especially seeing both the Dollar and Gold move up together!
The Federal Reserve presented a dovish stance, promising to not raise interest rates anytime soon. They said a lot of things the stocks markets wanted to hear. But they failed to address the elephant in the room. The one thing that continues to put pressure on stocks. The 10 year yield.
The Stock Markets are under pressure awaiting for the Federal Reserve’s announcement and press conference. Today’s meeting is highly anticipated given what is occurring in the bond markets, particularly the 10 year yield. Can the Fed convince the markets that they can keep yields suppressed if required? This is what I expect from the Fed.
A $1.9 Trillion Dollar Stimulus Bill was approved by the US Senate over the weekend, and is now expected to pass the House tomorrow. How will Stocks react? Stocks have recovered overnight and into this mornings trading session from Friday’s lows, but certain markets display different signs.
US Stock Markets have seen some red this week. Yesterday, we saw an incredible drop but an even more spectacular dip buying opportunity. The real reason for this drop has to do with inflation fears and rising yields. Fed Funds Futures were pricing in an increased probability of the Fed raising interest rates. However, Jerome Powell during his testimony reassured investors that rates are not rising and saved the Markets.
According to the “collective wisdom of the markets,” the DJIA is worth 50% more today than it was in March 2020.
The Bank of Canada is set to make its next move in the ongoing currency war with a micro cut down to 0.10% next week. This was expected by us. Central Banks are attempting to weaken their currencies to boost inflation, and in some cases, boost exports. A cheaper currency also allows all the debt, and government debt, to be paid back in cheaper currencies. We have been calling this, and why the way to play this is to be in hard assets/commodities and even cryptocurrencies.
The S&P 600 & TSX20 are down by 1.16% and 0.26% respectively US Bonds see a rush of capital inflows as investors move out ‘riskier’ assets. The Canadian 10-year
What a week we had in the markets, the ebbs and flows of the stock market can be overwhelming at times and I am here
According to the latest Yahoo-Harris poll published on Sept. 9, 2020 – an astonishing 43% of retail investors said they are “using options, margin, or both.”
The new economy is digital. It’s in the trillions, so increasing digitization of the world has led to an increased risk that some parts of
When you have one hammer, everything begins to look like a nail. For the Fed, it’s “print money, cut rates”. Act First, Think Later It
As America’s reputation on the world stage declines, in perfect tandem the U.S. dollar is losing its mojo
Today, The International Monetary Fund (IMF) released a statement predicting that the global economy will take a $12 trillion hit from the Covid-19 pandemic. $12
Stuck at home, but armed with online trading apps, individual investors helped drive the historic comeback for stocks
Today, the U.S. Labor Department reported a general decline in underlying prices during April, 2020 – causing financial pundits to freak out about the possibility
“Nothing can basically stop America,” stated Buffett at Saturday’s virtual shareholder meeting. “The American miracle, the American magic has always prevailed and it will do so again.”
Buffett’s opinion (about the resiliency of the U.S. economy) has been right for six decades. Why wouldn’t it continue to be right?
After the price war on oil, futures contracts expiring on Tuesday hit the negative territory on Monday. But where’s the actual oil? Quite literally, the
What happens when a global pandemic meets a price war on oil? Or, what happens when severe practical problems meet ineffective policymakers? Rather, what happens
Some might be wondering, is this it for the precious metals? Gold has had a phenomenal run. It’s looking kinda expensive right now. And it’s
Though the U.S. Congress has yet to agree on a bailout package, it’s working on an unprecedented spending bill to prop up a dying economy.
Trust me, there’s nothing I’d like more, as the publisher of a financial markets-focused media outlet, than to tell you all it’s time to buy
Two weeks ago, on Equity Guru’s Discord Channel, I mentioned this break of an important level on oil and provided these two target zones. We are rapidly approaching our final target of the 21 dollar zone.
When the savings and loan crisis in the US hit in 1989, a lot of slow-moving investors lost their dough thinking the worst couldn’t possible
“It’s the financials that are really getting killed,” stated Schiff, “They have made all the loans that are not going to get repaid, so this is just like 2008, only it’s not just the banks that are going to need a bailout, it’s the hotels, it’s the airlines, it’s companies like Boeing, it’s the cruise lines.”
“The National Marriage Project dubbed the drop in divorce ‘a silver lining’ to the Great Recession,” stated The L.A. Times, “arguing that tough times were pulling many husbands and wives closer together.”
In the worst week for the US stock market since the financial crisis, the S&P500 fell more than 7.5%, and a full-blown price war rattled
Investors have legitimate reason to want four more years of Trump. Ignoring the recent coronavirus-catalysed carnage, the markets have performed well during the Trump presidency.
The recent blood-bath in blue-chip stocks was catalysed by the spread of the coronavirus, but there are 5 underlying causes that have made it so dramatic and ugly.
“While the comparison to SARS may provide some guidance, important changes have been experienced in China and the Chinese gold market since the 2003 outbreak,” stated the WGC.
Federal Reserve Chairman Jerome Powell said that the Fed is keeping a close eye on the possible fallout and impact of the coronavirus outbreak in China. Powell hasn’t made any claims yet as to what this means either in terms of possible liquidity injections or a rate cut. Let’s examine that.
Elizabeth Warren’s Accountable Capitalism Act (ACA) threatens to level the corporate playing field in America by bringing labor into the boardroom. Understandably, industrial lobbyists have
Amazon (AMZN.NASDAQ) reported earnings yesterday, beating market expectations by a wide margin and pushing itself into the four comma club – one trillion dollars in market cap. Let’s see how they got there.
The article below appeared first in our daily markets newsletter. Subscribe here. Coronavirus Fears We spoke on Friday about the spread of coronavirus and its
Streaming Wars Get Intense The next two weeks mark an important timeframe as major US firms release their quarterly earnings. Netflix reported earnings after market
Two hundred years after the Sherman Anti-trust Act brought about the fall of Rockefeller’s monopoly control, Bernie Saunders and Elizabeth Warren pushed for America to
#Networking and Insider Trading: DON’T DO IT There’s a scene in the popular movie, Margin Call, where John’s character highlights the three ways to succeed
BREAKING: Boeing 737 Jet Crashes in Iran due to technical issues after takeoff. Source (ISNA) Oil Stuff & The Middle East At least two airbases
A high bankruptcy rate may intuitively seem like a bad thing, but straight-faced “financial experts” argue that bankruptcies are a proxy for imaginative risk-taking – and therefore a good thing.
Fed Minutes The Federal Reserve released its minutes for the December meeting, and here are the key takeaways: Growth fears: despite the decade long bull
Travis Kalanick’s Exit Uber Inc.’s former CEO Travis Kalanick is not only stepping down from the board but has also offloaded his entire stake at
Bye Bye Boeing CEO I mean, for better or for worse, the CEO had this one coming. Boeing’s growing list of worries regarding the 737
Icahn’s traveling roadshow is only marginally better than the criminal activities of Bain Capital. These vicious business vultures swoop in, gain control of the shares, get the company to load up on back-breaking debt to commence a share buyback scheme which they sell into and walk away from long before the company’s books explode all over the retail bag holders.
2 fatal plane crashes and 346 lives. That’s what it took for Boeing to admit that things weren’t going so well after all. The firm announced on Monday that it would suspend production of its 737 Max Jetliner. The firm will halt production in January.
A translation of this article is available in Chinese at our partner website, NAI500 here. Before I get into the U.S. Fed and its market
There we go. It’s here. President Donald Trump agreed to a phase-one trade deal with China, averting the Dec 15 introduction of new tariffs on $160 billion worth of Chinese goods.
The Fed left interest rates unchanged on Wednesday, and chairman Powell reinstated his belief that the labour market can improve further despite unemployment being at a half-century low. “Even though we’re at 3.5% unemployment, there’s actually more slack out there,” Powell said. “And the risks of using an accommodative monetary policy’’ to boost the labour market are “relatively low.’’
Trade Talks
So here’s the thing: I think we’re in a classic game of Russian roulette. At this point in trade talks its really a matter of time before China and US finally admit to each other that they would rather engage in what is clearly a patter of self-destructive behaviour than come to a mutual agreement about any deal that might be on the table.
Jobs Are Here: US
Economic data about job gains was released this morning, and unemployment matched half-century lows. Markets chased fresh highs, reaffirming that the Fed’s decision to hold rates was a reasonable one.
Aramco IPO is here
The oil-producing giant has priced its initial public offering at the high end of the target range to give it a total valuation of $1.7 trillion.
3 billion shares will be sold, which means investors will have the opportunity to buy a grand total of – wait for it – 1.5% stake of the company. On the Saudi Exchange, the high of the valuation target is 32 Saudi Riyals, ($8.53), a total offering of $25.6 billion.
Stocks Fall, Stocks Rise US and China are moving closer to agreeing on the amount of tariffs that will be rolled back the phase-one deal,
“No Deadline” for Tariff Man Stocks dropped and bonds rallied in global markets shortly after President Trump fired his tariff weapon to France and Latin
Return of the Tariff Man Thanksgiving is over, and tariff man strikes again! This time: the victim is France. The US proposed tariffs on some
Bond Sales Reach Record Highs With central banks cutting rates and yields dropping, investors have fled to other alternatives, primarily corporate bonds to get returns.
Happy Thanksgiving to our readers in the United States! The markets were closed in the US today, so there’s no major news coming in from
Deal or No Deal? We’ve heard major news about the “phase one” deal being finalised and markets have traded up on looming optimism. But let’s
Dell Earnings The firm reported third-quarter earnings today that beat estimates for earnings per share, but fell short of meeting the street’s revenue expectations. Here
Schwab buys TD Ameritrade It’s final: Schwab will buy TD Ameritrade for $26 billion to emerge as a giant with almost $5 trillion in assets.
Remember Han Christian Andersen’s The Emperor’s New Clothes? It starts off about seeing something and saying nothing, but then ends with deliberate denial. It seemed
Big Bets on Volatility Bridgewater Associates, the world’s largest hedge fund has made a bet worth more than $1 billion that markets across the globe
Nordstrom beats earnings Shares of Nordstrom surged by over 10% during extended trading Thursday after the company reported fiscal third-quarter earnings that beat analysts’ estimates.
China is “Cautiously Optimistic” China’s chief negotiator said that he was “cautiously optimistic” about reaching a phase one trade deal with the US despite tensions
Carl Icahn’s Big Short Billionaire Carl Icahn is betting against mall owners. He thinks they will be unable to service their debt. A lot many
Aramco IPO Oil giant Aramco is gearing up for a valuation between $1.6 – $1.7 trillion for its initial public offering. While this is short
Aurora CEO: “We will be profitable before others” Aurora Cannabis Inc. Chairman Michael Singer made a statement today that the firm will reach profitability before
Cannapocalypse: Version 2 I think Canopy Growth ($CGC) and Aurora Cannabis ($ACB) should notify the makers of the Oxford English Dictionary that the word “earnings”
Disney Plus: 10 million subs We’ve spoken in the past about the heating up streaming wars, and Disney has come out to take a market
Before it’s here, it’s in your inbox. Sign up for our daily markets newsletter here. Daily updates about what’s moving the markets. Political Economy I’m certain
Before it’s here, it’s in your inbox. Sign up for our daily markets newsletter here. Daily updates about what’s moving the markets. Bloomberg runs for President
Before it’s here, it’s in your inbox. Sign up for our daily markets newsletter here. Daily updates about what’s moving the markets. Xerox makes a bid
Before it’s here, it’s in your inbox. Sign up for our daily markets newsletter here. Daily updates about what’s moving the markets. China insures itself The
The financial crisis of 2007 wiped trillions off our global financial ledger. National economies reeled in the wake of banking’s biggest boo-boo since Reagan’s deregulation
