Tag Archive: tax reform

Could a Tax Overhaul Doom Stocks?

If you have ever invested in financial markets before, chances are good you have heard the phrase “Buy the rumor sell the fact.” This is an interesting market dynamic in which a market rallies based on a catalyst such as higher expected earnings, lower rates or new legislation, only to reverse course once that catalyst is actually implemented. Looking at the stock market and its string rise in recent months, you have to wonder if that dynamic will be seen again. Stock strength has come... Continue Reading

Another Rate Hike and another Bounce Higher

This past week, the Federal Reserve raised interest rates by 25 basis points in a move that was widely expected. The rate hike announcement did not have a significant impact on markets, and stocks actually moved higher despite it. The central bank also stuck to its previous forecast of another three rate hikes in 2018. Investors may not be buying it, however. Although the economy has shown major improvement in many areas, the sustainability of such improvements may be questionable. Then there is also the... Continue Reading

Yield Curve Playing a Role

The gold market is seeing some strength to begin the new trading week following the Thanksgiving Holiday shortened week. Some of the primary factors for gold’s recent strength are at work today, including a weaker dollar index and flattening yield curve. The dollar is losing ground as investors deliberate the confirmation hearing for new Fed Chief Jerome Powell as well as the potential for a tax deal actually getting done. The dollar chart is not pretty at this point, and the currency could be eyeing... Continue Reading

Will Tax Cuts Weigh on Gold?

The Senate has voted and passed a budget plan that could potentially pave the way for significant U.S. tax cuts. The House plans to take up the budget blueprint (approved by the Senate 51-49) as early as next week. A quick passage through the House could enable a tax cut plan to move forward expeditiously. The initial reaction being seen on Friday is dollar strength and gold weakness. That’s all it is, however, a knee-jerk reaction. Whether or not tax cuts might weigh on gold... Continue Reading

With or Without Tax Reform Gold Likely to Win

Markets have been on more solid footing in recent days as a quiet North Korea and the notion of tax reforms stoked investors’ appetite for risk. Much has been made of the potential Trump tax reforms, and the President is attempting to make good on a key campaign promise. At the same time that hopes for a tax plan have been seemingly rekindled, the U.S. reached a significant milestone in its ongoing debt problem. In fact, as of the Friday before last, the nation was... Continue Reading

A Sea of Black Swans

Let’s be clear about something: The ongoing escalation in tensions with North Korea may be having an effect on the gold market, but is it not the primary driver of gold. Gold had a very strong session on Monday to begin the trading week before news of another missile test by North Korea hit the wires. The fact is, there are numerous potential black swans that could really derail global equity markets and drive a massive spike in risk aversion and overall market volatility. North... Continue Reading