Oh, Flower of Scotland
Leading up to the referendum on Scottish Independence, one trader remarked “there will be blood on the trading floor Friday” if the Scots were to vote “Yes” and chose to break the 307-year-old union with the United Kingdom.
read moreDominating Dollar
The resounding story for the markets these last few weeks has been the unequivocal strength of the US dollar. The dollar closed higher Friday for the ninth straight week as it continues on its best run in 17 years.
read moreSuper Mario Shows His Hand
Mario Draghi and the European Central Bank (ECB) shocked financial markets this week when they yet again revealed they were prepared to further combat a stagnating European economy.
read morePredicting the Unpredictable
As the markets awoke at the beginning of the week to news of a US air strike on Iraq, one aspect of the risk off trade that had been ensuing became clearer. Those who had been selling equities from the week earlier were doing so because of events in Russia.
read moreA Goldilocks Moment
Who would of figured that in a week when the US economy reported initial estimates of second quarter GDP growth of 4 per cent, that the Dow Jones Industrial Average would simultaneously erase its gains for the year.
read moreEconomic Patriotism or Free Market Pragmatism
The Obama administration is becoming quite critical of US corporations acquiring foreign firms in order to relocate their tax domicile to a country with a more favorable regime.
read moreMemories of a Euro Crisis
Gold prices gained for the sixth week in a row putting up the metals’ best winning streak since August of 2011.
read moreSanguine Markets
A clear message from investors as we head into the July 4th Holiday weekend in the United States is that equity markets are poised to continue their march higher.
read moreAnother Bullish Signal for Gold
The Financial Times reported this week that central banks around the world are in the process of repositioning their portfolios as they pare back their exposure to US treasuries.
read moreSizing Up Gold’s Rally
Gold had its best single day performance since September of 2013 on Thursday of this week. It begs the question, what contributed or led to the 50-dollar rally?
read moreEurope’s Deflation Fear
The story with the ECB was that all they had to do thus far was wave their metaphorical policy weapon without every firing a bullet.
read moreIs a Golden Opportunity Finally Presenting Itself?
There is a bizarre dichotomy between financial markets and the economy.
read moreBack to the Bond Market
Gold has not closed outside the range of 1,282 to 1,311 US per oz. since April 14, 2014. It has made the market action over the last six weeks decisively boring.
read moreA Dose of Reality
2014 so far hasn’t really panned out as many had anticipated. While financial markets, particularly equities have seen increased volatility, the year of a strong greenback (US dollar) corresponding to a strong US economy is yet to develop.
read moreUpbeat Economy, Beaten Down Markets
Equity markets on Friday provided no indication that the April jobs report exhibited the best growth in payrolls since January of 2012, or second best since the US escaped recession in mid-2009.
read moreWhat Happened to the American Dream?
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of misery.” – Winston Churchill
read moreFour Years On
Greece’s return to the bond market was extremely well welcomed, but for the investment opportunity in an environment that will continue to see downward pressure in European interest rates.
read moreWhat the Markets are telling us about the Economy
Friday’s US payroll numbers revealed a key milestone for the US labour market. Private employer payrolls surged to 116.09 million positions, a level not surpassed since January of 2008.
read moreYellen’s Task
The Federal Reserve used their policy announcement and the press conference following the announcement to alter their method of forward guidance.
read more“Putin is Playing Chess, Obama is Playing Marbles”
Financial markets are at the whim of how events will unfold in Ukraine. It is geopolitical tensions that are keeping the markets at bay.
read moreManipulation in the Markets
Bloomberg reported on a study this past week that points to decades of manipulation in the gold market. Whether there is credence to this study is something that is yet to be proven.
read moreA Diminishing Reach
There is a stark difference in the financial world today than a few year’s prior. Unsettling news in foreign counties does not seem to have the same effect as it once did.
read moreA Dollar Tug of War
A rift if being created as no consideration is yet to be given from the western world. A dollar tug of war is creating a global imbalance.
read moreA Bumpy Road Forward
“The experience of the market place of this past week will be indicative of this entire year; I think we are going to be in a world of much greater volatility. That doesn’t mean we end up in a bad place. . . but there will be quite a bit of disruption”
-Blackrock CEO Larry Fink speaking at the World Economic Forum in Davos, Switzerland
read morePricing the Taper
The monetary efforts employed by the US Fed were experimental policies that have previously never been experienced. It’s very difficult to price something into the markets that we have never seen before.
read morePremium for Excellence
To suggest that the Canadian Federal Government is pushing a weak dollar policy must then imply that in years past they too were opting for a stronger Canadian dollar. At the least the price of the Canadian dollar would suggest that, but unfortunately its nonsense.
read moreThe Biggest Question for 2014
The biggest question for 2014 is not whether the US stock market will be able to perform a repeat of the exuberant gains achieved in 2013. It does, however, relate to whether stocks will be able to repeat their exuberant gains.
read moreThe Inevitable Taper Part II
It might have gone against the conventional wisdom to see the markets trade higher on the basis that the US Federal Reserve will begin, come January, to be less accommodative to the US economy.
read moreLooking at the Loonie
It’s hard to avoid the topic of the beleaguered Canadian dollar given the swift move down we have seen against its US counterpart over the last six weeks.
read moreWhy it’s Okay to still be Bullish on Gold: The Difference between Short and Long term
Given the fact that commodities became the easiest pick for investors over the latest decade, we really shouldn’t be that perplexed with the idea of how quickly it has now been shunned by the masses
read moreWhy the Taper Will Come
It is not the Fed’s goal is to be less accommodative by tapering, but change the medium in which policy is delivered.
read moreDefining the Yellen Put
For this economic recovery to continue central bankers are still needed more desperately than ever.
read moreThe Future Fiscal Drain of Obamacare
The current debate on Obamacare is not over whether the US needs a system of universal healthcare. That debate has passed, successfully.
read moreTriple Top
Dennis Gartman on CNBC earlier in the week said this would be the most boring FOMC statement from the Federal Reserve this year. He was correct.
read moreA Little Further Down the Road
The most overused expression that has come about since governments in Europe and the US have been unable to compromise on budget negotiations is “kicking-the-can down the road.”
read moreThe Almighty US Dollar
The Triffin Dilemma, named after economist Robert Triffin, speaks to the balancing act required on the part of the government that stands behind the world’s reserve currency.
read moreShowdown to Shutdown
What is going on in Washington is more of a political charade than real budget negotiations; albeit, it is a distraction from the real structural problems created from a two decade period of credit-fuelled surges in consumption.
read moreGold: An Insurance against Illiquidity
The renowned commodities investor Donald Coxe wrote in the Globe and Mail this week on what seems to be an original and profound thesis for gold….
read moreThe Imminent Taper
Although there are many uncertainties, one thing is clear; despite the Fed’s increased transparency and despite their efforts to provide forward guidance—against all efforts to the contrary they still have the ability to send financial markets for a tailspin.
read more