Latest Posts
-
Finance 0
GBP: Advance Against USD Set To Continue
Talking Points: GBP/USD looks set to challenge the 2017 high at 1.3267 set on August 3 but the Pound could struggle to make ground against the Euro and the Japanese Yen. The Bank of England will likely keep all its monetary policy settings unchanged Thursday. It’s a big week for UK data, with inflation, jobs and earnings all on the calendar. Fundamental Forecast for GBP: Bullish The British Pound recovered strongly against a weak US Dollar last week and there’s little to suggest that its climb is running out of steam. While the persistent weakness of the UK economy means little or no chance of higher UK interest rates for the for... -
Finance 0
The Stock And Gold Markets: One’s Looking Good, The Other Not So Good
The Dow Jones’ last all-time high (BEV Zero) was on August 7, and as for much of the past year, the Dow continues refusing to correct more than just a few percentage points, if that. Come this December, it will be two years since the Dow Jones has corrected anywhere near its BEV -7.5% red line in the BEV chart below, and that seems odd to me. But maybe that’s just me worrying unnecessarily about excessive bullishness in this market. Gallup’s poll of investors’ optimism is at a high not seen since September 2000, seventeen years ago. However, I suspect September 2017 will prove to be as a good time to exit the market as was September... -
Finance 0
The Real Euro Watch
Everyone is now a euro watcher. The European common currency’s exchange value against the dollar has been on the rise, to put it mildly. Despite decades of declaring floating currencies the optimal framework, it really is quite entertaining to watch the furor when these things actually float one way or the other. This recent trend has been attributed to the ECB and its head Mario Draghi. Not that in the mainstream there is belief Europe’s central bank and its central bankers want the euro moving up, rather conventional opinion opines that because the ECB has been effective with its “stimulus” the European economy is now in a very goo... -
Finance 0
Deutsche: “Recession Risk Is The Highest In Ten Years; It’s Time For The Fed To Pause Tightening”
Even before Harvey and Irma were set to punish Texas and Florida, erasing at least 0.4% GDP from Q3 GDP according to BofA and costing hundreds of billions in damages (contrary to the best broken window fallacy, the lost invested capital more than offsets the “flow” benefits from new spending, which is why the US does not bomb itself every time there is a recession to “stimulate growth”), things were turning south for the US economy, so much so that according to the latest Deutsche Bank model, which looks at economic data that still has to incorporate the Irma/Harvey effects, the risk of a recession starting in the ... -
Finance 0
Weekly Forex Forecast – Sunday, Sept. 10
EUR/USD The EUR/USD pair rallied during the week, breaking above the 1.20 level. By closing above that level, it’s a very bullish sign and I think that short-term pullbacks will probably be buying opportunities. However, be careful, as we are most certainly overextended. I believe that eventually we go to the 1.25 handle. USD/CAD The US dollar broke below the trendline against the Canadian dollar during the week, and it now looks as if the 1.20 level will be the next major support barrier. However, I think we may get a little bit of a short-term bounce, offering a better selling opportunity. Eventually we will break down below the 1.20 leve... -
Finance 0
The Top Three Arguments Against A Universal Basic Income
Every so often a new study is released, concluding that a universal basic income (UBI) is needed to fix this country’s welfare system. Most recently, the Roosevelt Institute claimed that switching to a UBI system could actually grow the economy by $2.5 trillion by the year 2025. The study is full of hypothetical situations in which Americans receive a UBI of varying amounts. The research concludes that the higher the UBI, the more prosperous the economy. But like many UBI apologists, the study misses the major problems with such a system. Here are the three main ones: 1. It’s Expensive Proponents claim that the UBI would be an effic... -
Finance 0
Forex Weekly Outlook – Sep. 11-15
The US dollar had a bad week, losing ground across the board with no exception. US inflation and consumer figures stand out in the week before the all-important Fed meeting. Here are the highlights for the upcoming week. The euro was not convinced by Draghi’s concern about the exchange rate and advanced. The pound got a boost from hopes for a soft Brexit. The Canadian dollar was thrust forward with a rate hike from the BOC and the yen advanced on safe-haven flows stemming from heightened tensions with North Korea and the hurricanes the US suffers from. And what about the dollar? The Fed seems less hawkish with Dudley’s caution about ... -
Finance 0
The “Squeeze” In The Gold Miners ETF
Price on the following GDX Monthly chart is currently being squeezed in between major resistance of a 23.6% Fib retracement level and a recent breakout above a long-term downtrend line. We’ll see if it continues to rally — maybe to 30.00 or even 33.00 — but there is a lot of overhead price supply, so that could be quite a long shot. I’d like to see Money Flow firm up on any further advancement, as that indicator is currently in downtrend on this longer timeframe. In the shorter term, price is now under the bullish influence of a new Golden Cross moving average formation, as shown on the following Daily char... -
Finance 0
Buy These 3 Dividend Stocks To Hedge Your Bets
The S&P 500 is trading close to its 52-week highs meaning that average shares in the index are trading at lofty valuations. They may have good reason to do so: the jobs data is encouraging, wages are trending higher, consumer confidence is rising and consumer spending appears stable (according to schwab.com). Additionally, oil prices are out of the doldrums and new construction activity continues to pick up. But rising prices also increase the risk of a correction, if shares don’t perform exactly as envisaged. That’s why it may be worthwhile to take a look at stocks that yield a regular income. Because investment in these stocks will ... -
Finance 0
Dollar Drop Crosses 12%: Can Inflation Turn The Tide Ahead Of The Fed?
Fundamental Forecast for USD: Neutral The U.S. Dollar extended its bearish run this week, as ‘DXY’ moved-down every day, Monday thru Friday. This now accounts for a drop of -12.34% from the DXY high on the second trading day of the year down to this morning’s low. After a doji had shown up on Wednesday above last week’s fresh 2.5 year low, there appeared to be a legitimate chance of USD finally putting in some element of retracement in this well-heeled bearish trend. But another dovish ECB outlay was unable to reverse the bullish course of the Euro, and in response the Dollar continued to show weakness as traders have attempted...
Top Posts
-
The Importance for Individuals to Use Sustainable Chemicals
-
Small Businesses: Finding the Right Candidate for the Job
-
How to Write the Perfect Thank You Letter After Your Job Interview
-
3 Best Large-Cap Blend Mutual Funds For Enticing Returns
-
China suspected in massive breach of federal personnel data
