Wednesday, December 11, 2019
I recently wrote “Most readers have felt … for some time, … things are just not right, yet so far, nothing horrible has happened.” Ron Paul’s recent article, Is The ‘Mother of all Bubbles’ about to Pop?, reinforces those fears: “When the New York Federal Reserve began pumping billions of dollars a day into the repurchasing (repo) markets […]
In 2008, I began investing in foreign currency. The Fed created trillions of dollars out of thin air, high inflation was sure to follow. With the help of friend Chuck Butler, I bought FDIC insured foreign currency Certificates of Deposit (CD) through Everbank. I also bought Exchange Traded Funds (ETF) and sent money offshore; investing […]
Both 2018 and 2019 have been characterized by periods of choppy markets and higher volatility. It’s been quite the change of pace from 2017, where it seemed like we would never experience market volatility ever again. Of course, nearly everything in the financial markets moves in cycles. Low periods of volatility will inevitably be followed […]
Although the stock market has had its share of ups and downs over the last couple of months, the price of gold has been surprisingly stable. In August, the gold futures reached $1,500 an ounce. Fast forward to mid-October, and futures are still right around that $1,500 level. Why have gold prices remained elevated despite […]
Last week, House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Trump. According to The New York Times, the inquiry will look at “charging him with betraying his oath of office and the nation’s security by seeking to enlist a foreign power to tarnish a rival for his own political gain.” I won’t discuss […]
Why are investors so fixated on interest rates? If you follow the financial markets regularly, you’ll notice how laser-focused the investment community is on what the Federal Reserve is doing, how bond markets react, and what it all means for interest rates. But why are interest rates so important? What does a change of a […]
Former Fed Chairs, Janet Yellen and Ben Bernanke took great credit for steering the world recovery from the great recession. When something good happens, it’s a result of their masterful strategic planning. Why are they totally surprised when negative news gets reported? The Business Insider headline blared, “A record 7 million Americans have stopped paying their […]
Despite the volatility and heavy stock selling in October, many analysts are expecting the remainder of 2018 to be bullish. The S&P 500 was only up 3% year-to-date after the October bloodbath (prior to mid-term elections), so it stands to reason that stocks are more likely to go up in the final two months of […]
The $5.1 billion deal to buy the Costa Coffee chain by Coca-Cola (NYSE: KO) is just the latest example highlighting the great lengths to which food and drinks companies are trying to keep pace with rapidly changing consumer habits that are upending traditional business models across the sector. The former owner, Britain’s Whitbread, had said […]
I always find it fascinating to see what kind of big trades are being made in the options markets. Some of the smartest strategists in the world use options markets as their playground, so generally speaking, you can assume a lot of research went into these blockbuster type trades. It’s also interesting to guess what […]
