Tag Archive: stock market decline

Markets Don’t Agree with the Fed

The Fed’s decision to hike rates again on Wednesday was met with displeasure from equity investors. Stocks saw sharp declines even as the Fed lowered its forecast for next year from three rate hikes to two. That displeasure was on full display on Thursday, as stocks once again got absolutely rocked. The tech-heavy Nasdaq was down 3% at the lows, putting it down over 20% from its August peak. Although the index recovered a bit, it still ended the session down just under 20% from... Continue Reading

Is a Full-Blown Depression in the Cards?

As investors await the latest FOMC meeting minutes, the ongoing battle over global trade remains at the forefront of attention. China, the EU, the U.S. and other regions thus far appear determined to dig in and try to hold their ground as tensions over trade escalate further. The current tit-for-tat exchanges of tariffs could be only the beginning, with even larger measures potentially being implemented. Although the opinions are quite varied as to how a global trade war could play out, such a scenario could... Continue Reading

It’s All a Big Bubble

Although stocks are down in early action Monday to kick off the new trading week, the market has shown great resiliency in recent months. In fact, there has been little to put a stop to the market’s upward trajectory, and investors appear to be quite comfortable buying stocks even at current levels. Tech stocks are flying high while more defensive equities such as telecommunications, healthcare and pharmaceuticals are seemingly being left behind. Some analysts have suggested that this points to a massive bubble in assets,... Continue Reading

Stocks Could be Ready to Crack

The stock market is still not too far off from recent highs. In fact, the market remains in striking distance of the 3000 level on the S&P 500. A few good weeks, and the market could be carving out fresh new all-time highs. Investors may simply be waiting until the recent pullback has subsided before looking to get long again. Such is the way the stock market works during a bull market-until it doesn’t. The market has been showing signs of exhaustion recently. The spike... Continue Reading

Don’t be Fooled

Concerns over the health of the stock market have been on the rise, and last week’s volatility certainly did not do the bulls any favors. As the threat of a significant global trade war accelerated through fresh action and tough rhetoric, investors saw fit to book profits and run for the exits. Monday saw a completely different looking stock market, however. The market saw its strongest single day performance since 2015, with the Dow Jones Industrial Average rising by some 670 points. A monster day,... Continue Reading

The Trade War is Underway

This past week has some a fair amount of market volatility as the potential for a large-scale trade war heats up. The Trump Administration this week announced tariffs on up to $60 billion in Chinese goods, a move that was not unexpected at this point. The order could, however, be just the first of several actions to come from Washington as it looks to erode what it sees as significant advantages to China and elsewhere. The tariff announcement comes just weeks after tariffs on steel... Continue Reading

Are Higher Yields Starting to Take a Toll?

The stock market saw major declines on Friday, as the Dow Jones Industrial Average shed over 700 points. Friday’s sell-off, and weekly performance for the indexes, was the worst in some time. Unfortunately, it could be just the opening salvo by stock market bears, and further declines could be ahead. The current risk-off mentality is likely being fueled by several factors, but rising interest rates are, without question, a major catalyst for declining stocks. On Friday, yields on the benchmark ten year note hit 2.85%,... Continue Reading

Watch Rates for Higher Gold

When it comes to the notion of higher interest rates, most investors automatically, and mistakenly, assume that higher rates equates to lower gold prices. Given the past decade of ultra-low rates and QE, however, such a correlation could actually have the direct, opposite effect of what many assume. The benchmark 10 year note could possibly hold the keys to substantially higher gold prices in the months and years ahead. That’s right: A higher 10 year yield could actually boost gold rather than drag it down.... Continue Reading

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Will Central Bankers Ignite the Next Leg Up?

Gold has been trading around the $1300 mark for several sessions now, and the yellow metal may simply be biding its time until there is enough buying “tinder” to stage a clean upside breakout above the recent highs. Fortunately for the gold bulls, there are numerous issues that could potentially fuel a significant break higher in prices, and one of them could be this week’s Fed symposium taking place in Jackson Hole, Wyoming. This symposium is hosted by the Kansas City Federal Reserve and essentially... Continue Reading