(Video length 00:01:52) With only the Core Personal Expenditure numbers coming out during the course of the day on Monday, it’s very likely that the market will be more or less a technically driven situation. With this, we believe that some of the recent moves will continue. The one thing that we are starting to notice is that the US dollar is starting to have more and more pressure put upon it. We are not necessarily looking for the US selling a breakdown massively, just that it’s going to grind lower and value. 1 – Precious metals look as if they are going to rally during the course of the session, as the US dollar falling of course...
Did you know that when you take the number of working age Americans that are officially unemployed (8.2 million) and add that number to the number of working age Americans that are considered to be “not in the labor force” (94.3 million), that gives us a grand total of 102.5 million working age Americans that do not have a job right now? I have written about this before, but today I want to focus just on Americans that are in their prime working years. When you look at only Americans that are from age 25 to age 54, 23.2 percent of them are unemployed right now. The following analysis and chart come from the Weekly Standard… Here...
It seems like everyone is jumping on the real estate investment bandwagon these days, with the rental market becoming increasingly competitive and allowing landlords to charge ever increasing prices. While becoming a landlord can be a wonderful way to supplement your income, it’s not without its fair share of challenges, contrary to what the popular shows on HGTV might have made you believe. If you’re considering an investment in rental properties, take these factors into mind first. 1. The Amount of Responsibility Deciding to become a landlord is no small endeavor, and taking on the responsibility that comes along with renting out per...
The last Housing Market Review covered data released in February, 2016. At the time, sentiment and data ahead of the Spring selling season was not as strong as I had anticipated. The iShares US Home Construction ETF (ITB) has gained little since then and has even stalled out at resistance at its 200-day moving average (DMA). Under the circumstances, combined with an overbought market, I decided to take profits in a little over half of my holdings in individual home builders. On a seasonal basis, taking some profits off the table also makes sense (see below). 200DMA resistance held firm on ITB this past week. Source: FreeStockCharts.com ...
A well-balanced economy, as defined by the Business Dictionary, is the financial condition of a country where there is an equal proportion in exports and imports. This view, while practical, is also simplistic and there are several other factors that many would consider to be present in a a balanced state. Factors such as the output of goods, unemployment and the balance of prices spring to mind as the most crucial. However, many would would argue that a well-balanced economy is simply a fanciful ideal that no country has ever managed to fulfil. For example, in a perfectly balanced economy, consumers and businesses would be perfectly matche...
What no financial analyst dares confess is the corporate profits they cheer every quarter have come at a cost that many Americans will soon be unable to bear. If you work for Corporate America in a managerial or professional capacity, you know all about burnout, because you see it all around you or are experiencing it yourself. Readers describe what they are seeing in the top ranks of S&P 500 corporations, and the stories (anonymous because everyone knows the truth will get them fired/blacklisted) are all about the high personal costs of earning big paychecks by making the numbers–not just revenue but the all-important profits that...
Gold ended the holiday-shortened week down by 3.5% at $1217 an ounce as the possibility of an earlier-than expected rise in U.S. interest rates weighed on the market. Comments from St. Louis Fed President James Bullard and Chicago Fed President Charles Evans revived views that the Federal Reserve might consider edging the policy rate towards more normal levels at its next meeting. Increasing demand for the greenback and the risk on attitude across global markets tend to weaken the appeal of commodities such as gold. A report from the Commerce Department on Friday, when the market was closed for Good Friday, showed gross domestic product rose ...
In 1980 Ronald Reagan spoke about the Misery Index. An economist had added the inflation rate to the unemployment rate, called it the Misery Index, and used it to indicate the social costs and economic difficulty for the middle class. Today the Misery Index is much smaller than in 1980, thanks to … intelligent fiscal management, economically beneficial monetary policy from the Federal Reserve, and wise political policy from the White House. If you believe any of those, read no further. Most people will agree that the Misery Index is much smaller today because the numbers have been gimmicked. Does anyone believe a few percent for inflation o...
As TVIX, the double-levered long VIX ETF unleashed in Nov 2010, decays to record low prices… An unusual (and almost unprecedented) event has occurred. Just as we saw in Gold ETFs, and Oil ETFs, TVIX Shares Outstanding have exploded by a stunning 225% in the last 4 weeks… [the last 3 times TVIX has undeergone such an epic surge in demand marked a major turning point and led a violent surge in VIX] with the largest inflows (bearish bets) on record in the last week… The entire VIX complex is perturbed as the huge bearish TVIX flows contrast with the complacency of the steepest term structure since Nov 2014 (post Bu...