Global Market Commentary, Analysis and Investments
Well… We saw another “take-down” of gold yesterday… It’s shameful to watch this going on… And while it was happening, I decided to take down some notes, so that I didn’t forget them front and center, this morning…
OK… Ever wonder why I’m so confused as to why gold goes down when it should be going up?
[Read more...]It’s not so Fantastico for the currencies this morning… Except the dollar, and Chinese renminbi (CNY), and I can’t forget gold! Yes, the price of gold is higher this morning by $14, moving it deeper through the $1,600 handle. So… What’s the skinny, Chuck?
[Read more...]“The world is full of banana peels, that goes without saying,” the insightful financial writer, James Grant, observed last week. “The difference today, across a range of markets, is you’re not getting compensated for the risks you face.”
Without knowing the context of Grant’s observation, most investors might imagine he was referring first and foremost to the stock market. But he wasn’t. He was referring to money-market mutual funds, or what most folks consider “cash.”
[Read more...]An Interview with Doug Casey from Cafayate, Argentina
[To read Part I of this interview, click here]
Interviewer: Concerning the risk of foreign exchange controls here in the US, do you think people will have any warning at all?
[Read more...]Market internals remain bearish. The rush to cut portfolio risk remains intact. Here is a two-year chart of the S&P 500 (in red) and the iShares High-Yield Corporate Bond ETF (HYG):
We have had two very different trading sessions in the past 24 hours, with the dollar benefiting from continued worries about Greece and Goldman Sachs in yesterdays US trading session; but Asia saw things a bit differently and started moving money back into risk assets. Early trading in Europe mirrors the moves in Asia, so the dollar is heading lower as I turn on the screens this morning.
[Read more...]I believe equity markets (and riskier assets in general) are in the midst of a 10-15% correction that plays out within one quarter, which is normal, not at the onset of the next financial avalanche, which lasts many quarters.
There was never any question that the extraordinary policy maneuvers of 2009 would begin to be unwound in 2010. But the culmination of events in Europe, China and the United States over the last two months have brought this all to a head very early on in 2010. Profit taking after large, sustained bull runs is a natural reaction of investors to a bout of increasing uncertainty and higher risk recognition.
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The Risk-On Rally Continues
Front and center this morning, Chris told you all about the new lines and lower borrowing rates that six central banks from around the world, have coordinated. And he told you that the markets liked the move… And the markets continued to like the move all day yesterday, overnight and this morning… But, does this sound like something that can outweigh the debt problems of the Eurozone? To me… The simple answer is no… The longer version of the answer is…
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