Tag Archive: stock market crash

The Party Continues

The highly anticipated September FOMC meeting has now come and gone. The Fed elected to hold rates steady by a vote of 7-3. Although this vote may have been closer than many had expected, perhaps more important than the vote itself was the central bank’s economic outlook and commentary. The Fed’s so-called “dot-plot” is pointing to a very gradual pace of rate hikes, with the Fed Funds target rate also being lowered from a three percent target to a 2.9 percent target. It is now... Continue Reading

Another Vote Against Negative Interest Rates

As the spread of negative interest rates is set to continue, German bank boss John Cryan is voicing his thoughts on the monetary policy tool. Cryan is the CEO of Deutsche Bank, Germany’s largest bank and a bank that is recognized all over the globe. As more financial experts weigh in on the potential effects of negative interest rates, Cryan made his opinion fairly clear, stating that such a policy could have “fatal consequences.” Deutsche Bank has felt the effects of negative interest rates which... Continue Reading

The Vote Is In – Brexit Becomes Reality

In a historic vote that shook financial markets on Friday, the people of Great Britain have voted to exit the European Union. While optimism over the nation remaining in the union seemed to be on the rise heading into Thursday’s vote, things changed quickly once the votes starting being tallied. Stock index futures, interest rates and currencies starting seeing massive volatility on Thursday night as the results came in. Brexit was becoming a reality… At one point, S&P 500 futures went “limit down” with a... Continue Reading

Is the Global Economy Entering a Period of Deflation?

Does debt work? This question already appears to have found an answer, and the coming years could reinforce the notion that the massive amounts of debt accumulated around the world are due at some point, and a price will have to be paid. That day could be closer than many realize… Take a look at how equity markets began 2016. The Dow Jones saw its worst start on record, the S&P 500 tumbled, and crude oil prices continued their slide to trade below $30 per... Continue Reading

3 Possible Catalysts for a Significant Rally in Gold This Year

The gold market has gotten 2016 off to a good start. Investors have been buying the yellow metal as uncertainty over global economies and equities intensified. The interest seen in gold at the beginning of the year could potentially be just a glimpse of things to come. Gold appears to have found a meaningful bottom, and the market may be poised to resume its longer-term uptrend. While the possible reasons for a rally in gold are numerous, here are three potential issues that could potentially... Continue Reading

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Gold and the Presidential Cycle

According to the theory of the Presidential election cycle, U.S. stocks experience weakness in the year after the election. The cycle then may revert back to stronger equities until it is time for the next election. What may drive initial weakness in equities followed by a rebound? The answer is reforms, new policies and a degree of uncertainty. Think about it this way: When a newly elected President takes office, he or she may look to deliver on plans discussed on the campaign trail, even... Continue Reading

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The Coming Bear Market in Stocks

In general, a bear market is a market that has declined twenty percent from its high. This drop becomes especially significant when multiple stock indexes are down twenty percent or more and when these declines have lasted for at least several weeks. Are U.S. stocks currently in a bear market? No. Are global equity markets in bear market statuses? Yes. Could U.S. stocks be headed for a bear market? Absolutely. While no one can see the future, the domestic stock market could potentially be at... Continue Reading

Are Stocks Ready to Tumble?

Stocks are under some pressure recently as the risk of a Greek default and the notion of higher interest rates take their toll on investor sentiment. The question is: Is recent weakness seen in equities simply another pullback or is it indicative of more volatility and lower prices to come? Like anything else in life, different investors will have different opinions on this. We do believe, however, that the stock bears do have a case. Stocks are now in the seventh year of the rally... Continue Reading

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