Tag Archive: stock market

Fresh QE Has Arrived

The gold market rose to the highs of the day yesterday as markets reacted to commentary from Fed Chief Jerome Powell. Mr. Powell, at the annual NABE conference in Denver, said that the central bank will start expanding its balance sheet soon. He went on to state that the central bank also remains open to further rate cuts, citing risks to the global economy. Of note is the suggestion by Powell that this is in no way QE. He was quoted as saying “This is... Continue Reading

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Rates Will Be Back to Zero in No Time

The past trading week has been an interesting one. The highly anticipated FOMC meeting has now come and gone, with the central bank cutting the Fed Funds rate by 25-basis points as expected. The Fed did not, however, seem to provide the type of dovish message that the stock bulls were looking for. Stocks sold-off hard following the Fed’s decision. On Thursday, stocks were set to stage a significant rebound and looked poised to retake all the declines from the previous day. That was until... Continue Reading

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How About 55% Declines for Stocks?

Love him or hate him, President Trump has accomplished a great deal in his first two years in office. Stocks are near record highs, unemployment is near a 50-year low and the economy is seeing real growth. Trump, who has never been one to shy away from voicing his opinions, and he recently tweeted: ‘Had the opposition party (no, not the Media) won the election, the Stock Market would be down at least 10,000 points by now. We are heading up, up, up!’ – President... Continue Reading

Liquidity Could Be an Issue

It seems that with each passing day, more and more analysts are jumping on the bear bandwagon. There have already been numerous calls from well-respected firms highlighting the risks that the economy and stock market are facing, and some have even suggested that the next major downturn could be far more significant and longer than the last. There are numerous potential issues that could drive the next major downturn: Higher interest rates, weakening stimulus effects, geopolitics and higher inflation to name a few. Regardless of... Continue Reading

Remember the VIX?

There has been little in the way of market volatility in recent months, and investors appear to be growing increasingly complacent as the markets look to make fresh, all-time highs. Although markets spent some time in correction territory, they have not seen any significant declines for fresh buyers to enter. This could lead to a large amount of FOMO-or fear of missing out. This fear of missing out could take the market to some significant new heights before the bottom falls out. There has been... Continue Reading

3 Reasons to Consider Exiting Stocks Now

The stock market seems to keep going and going. The market has had little, if any, in the way of major pullbacks or retracements since the current bull market began about a decade ago. The market seems unable to go significantly lower, and the current level of bullishness borders on the dangerous. Price action like that has been seen in recent months has a tendency to suck investors into the market-especially those that have been waiting for that big “pullback” to get long. As these... Continue Reading

Could a Trade War Send Gold Higher?

Markets have a lot on their plate right now, including the notion of higher interest rates, overstretched valuations and accelerating inflation. If that is not enough for stock market bulls to contend with, how about adding the potential for a global trade war. Stocks are set to open lower again on Monday, as the threat of a trade war begins to sink into investor psyche. Last week, President Donald Trump made waves as he discussed heavy tariffs on steel and aluminum products. The 25 percent... Continue Reading

There’s Few Good Options

Alternative asset classes are more important than ever, and investors have never had so many vehicles with which to diversify their portfolios. This would seem to be especially important in the current environment, where neither stocks nor bonds may offer investors a good value. The stock market has been on the rise for the last decade. Although it is impossible to say exactly when the bull market may finally come to an end, history would seemingly indicate that the current bull could run out of... Continue Reading

Are Markets Headed Back to Earth?

The recent volatility seen in global stock markets has largely dominated headlines in the financial media recently, and many investors are likely wondering why the sudden sharp increase in price swings. Regardless of what the reason may be-whether it is overaggressive betting against volatility, the idea of rising rates, accelerating inflationary pressures or the current state of geopolitics-there may be a simpler, albeit unpopular answer: Stocks and risk assets are seeing a return to valuations more in line with historical norms. That’s right: Stocks have... Continue Reading

Another Reason to Diversify Away From Stocks

This week has certainly been one for the books. Massive swings in stocks, coupled with the largest spike in volatility ever recorded have likely put more than a few investors out of business over the last several sessions. It may get worse. The fear of inflation and rising bond yields have definitely weighed on stocks. There are other forces at work as well, however, that may be adding fuel to the fire. It’s no secret that some investors may have been making money off of... Continue Reading

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