Central Bank

The central bank is an institution that manages a nation’s currency, money supply and interest rates. The central bank also oversees a nation’s banking system and is the lender of last resort in a time of crisis. The central bank is normally a separate body from the political establishment. The central bank’s goal is to create stability and low inflation in the system.

Central Banks Creating Global Stock Market Bubbles

By Friday, April 17, 2015

Central banksIrrationality prevails in global stock markets and I believe it’s because of the actions of central banks. What’s happening with central banks and their involvement with equity markets not only is unprecedented, but it also will not end well.
Japanese Stock Market Topping 20,000
Just look at the chart below of the Tokyo Nikkei Average—a key measure of Japanese stocks…. Read More

Stocks to Push Higher Following First Fed Rate Increase?

By Wednesday, March 25, 2015

Central bank high interest ratesWith the Federal Reserve green-lighting the stock market’s recent advance, it’s a reminder that equities continue to be guided by central bankers and not economic reality.
Fed’s Accommodative Actions Guarantee Return for Stock Investors?
But this is how it always is in a secondary market (stocks). Share prices reflect the perception of a multitude of forces (the Federal Reserve’s actions included), with earnings growth a secondary issue in recent history, along with Main Street incomes…. Read More

How Central Banks Are Pushing Stock Prices Higher

By Friday, November 28, 2014

Central Banks Are Pushing Stock Prices HigherThe “trade” these days is very simple. Just follow what the central banks around the world say and you are pretty much guaranteed to make money. As long as they announce they are printing more paper money or lowering interest rates, then just buy stocks. This requires no thinking whatsoever and the fundamentals, like economic data and corporate earnings, don’t really matter…. Read More

Dow Jones Transportation Stocks Suggesting Bullish Fourth Quarter?

By Friday, November 7, 2014

Where Are Stocks HeadedIn terms of stock market direction, the Dow Jones Transportation Average recently pushed through to another new record-high. The index retrenched along with the broader market in early October, but it fought back hard to just over 8,800.
Within the index, countless stocks have been doing well. Alaska Air Group, Inc. (ALK) slumped to $42.00 in the lead-up to its earnings report…. Read More

About That Referendum in Switzerland…

By Wednesday, October 22, 2014

Demand Shock for Gold Market Coming SoonOn November 30, Switzerland’s citizens will cast a very critical vote.
Through a referendum, they will vote for or against the Swiss National Bank increasing its gold bullion reserves to 20%, the central bank halting the selling of gold, and the storing of gold bullion in the country. (Source: Kitco News, September 30, 2014.)
If the results are in favor of the referendum, it will mean Switzerland’s central bank will be forced to buy a significant amount of gold bullion…. Read More

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