Tag Archive: market volatility

You Can’t Afford to Wait

Stock markets are sharply higher today as hopes for a U.S./China trade deal appear to be on the rise. The ongoing trade war has been a source of market volatility and significant shifts in sentiment for several months now. Although a deal may boost stocks in the short-term, there are still many major hurdles to an ongoing stock bull market. In fact, given the age of the bull market and the state of the global economy, the market is far more likely to be at... Continue Reading

Category |

The Stage is Set

The gold market remains on the offensive today even as stocks try to recover some of last week’s declines. The stage is set, as the market continues to put distance between current price and the $1500 level and could make a significant run at $1700 or higher in the next few weeks. The buying frenzy in gold is being stoked by several factors that will likely keep the market moving higher. Here are three reasons why gold is likely to continue its recent ascent and... Continue Reading

Category |

Could the Fed Reserve Cut Mark the Top for Stocks?

The Federal Reserve cut the Fed Funds rate today by 25-basis points in a move that was widely expected. Markets had been increasing calls for a rate cut from the central bank, and President Trump has made it no secret he thinks the Fed is on the wrong track and wants lower rates. Over the last nine years, markets have become increasingly accustomed to the Fed or other central banks riding to the rescue at any sign of market volatility or significant risk aversion. Central... Continue Reading

Category |

Risk is to the Upside

When it comes to managing investments, risk management is everything. Knowing the potential risk on any position is imperative to success. Risk is not always to the downside, however, and oftentimes markets will exhibit behavior that warrants upside risk. The gold market may currently be displaying such upside risk. After spending much of 2018 probing the recent lows, the selling pressure eventually began to run dry. Try and try as they might, the bears were simply unable to push prices to significant new lows. In... Continue Reading

Get Ready for Some Serious Bumps

The markets are ending the year on what can only be called a sour note. Stocks are either in or on the verge of entering bear market territory and the potential downside could be just getting started. Measures of market volatility are also highly elevated and could potentially be indicative of further selling pressure in the months ahead. The potential risks facing the economy and global stock markets are immense. The ongoing war over trade, the potential fallout from a hard “Brexit,” higher interest rates... Continue Reading

The Ultimate Safe Haven

The markets have seen increasing volatility in recent weeks as rates move higher and as stocks decline. Recent market volatility could, however, be just a drop in the bucket of what could be seen as the New Year gets underway. Investors have numerous issues to contend with and a great deal of uncertainty about what the Fed may or may not do with monetary policy. The potential for an ongoing trade war with China, the ongoing issues in U.S. politics, Brexit and more could all... Continue Reading

The Trade War is on

Over the weekend, China announced tariffs up to 25% on a variety of U.S. imports, including pork, nuts, fruit and wine. The action taken by Beijing is in direct response to recent tariffs announced by the Trump administration. The recent actions taken represent a heightened state of tensions surrounding trade, and may continue to keep investors on edge. The war on trade could potentially escalate, and regardless of what side of the political aisle you may lean towards, it could have a significant effect on... Continue Reading

More Signs of an EU Breakup?

Think right now with rising stocks, rising interest rates, better economic data and a more hawkish Fed that there isn’t good reason to own gold? Think again… Spreads on Credit Default Swaps, or CDS, are rising for some EU countries. This would seemingly indicate that traders and investors may be getting more nervous about a potential breakup of the union, or of a key country deciding to leave as Great Britain did. A rise in these swaps simply means that more insurance is being purchased... Continue Reading