central bank

Canadian Dollar Forecast 2016: Could the Loonie Hit $0.60?

By Monday, October 5, 2015
Canadian Dollar Forecast 2016CAD/USD Exchange Rate: Canadian Dollar Forecast Bearish in 2016 Although the Canadian dollar was virtually on par with the U.S. dollar just two years ago, a handful of events have decimated the loonie since. Low commodity prices are threatening to crush the Canadian dollar as the currency was supposed to regain its footing. For many Canadians, dark times lie ahead. Oil prices fell dramatically last year because of oversupply concerns. .

India Economic Outlook: This Could Spell Trouble in 2016

By Thursday, October 1, 2015
India Economic OutlookIndia’s Economy Expected to Slow in 2016 In the midst of a weak global economy and a China stock market crash, India’s economic growth rate has eclipsed all others. The Indian economic outlook for 2016 is bright relative to the global economy, with businesses expressing enormous faith in the leadership of Prime Minister Narendra Modi. However, the nature of growth matters. India’s central bank governor, who called the country “an .

Federal Reserve: Alan Greenspan’s Warning from 1998 Holds True Today

By Friday, September 25, 2015
U.S._EconomyAlan Greenspan’s 1998 Statement Haunting Janet Yellen Today When Federal Reserve Chairman Alan Greenspan made a famous speech in 1998, no one knew how relevant it would be to Janet Yellen in 2015. Greenspan’s warning that the U.S. economy would suffer from global turmoil appears prophetic nearly two decades later. In a speech at the University of California, Berkeley, Greenspan dropped some big-picture wisdom. He said “it is just not .

China Lowers Interest Rates for the Third Time in Six Months

By Tuesday, May 12, 2015
China Lowers Interest RatesOn Sunday, May 10, the People’s Bank of China (PBOC) announced that it will lower its one-year benchmark lending rate by 25 basis points to 5.1%. They also cut the one-year deposit rate by the same amount to 2.25%. This is the third interest rate cut by China’s central bank in six months. Markets in Asia welcomed the expansionary monetary policy from the PBOC. In mainland China, the Shanghai Composite .

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. Tokyo Nikkei Average Index ‘Tokyo Nikkei Average Index, 1996-2015,’
Chart courtesy of StockCharts.com The

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, .

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. Look at the chart below of the Dow .

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. Now, it’s almost $55.00 a share after reporting .

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 .

About That 500% Jump in Interest Rates…

By Monday, September 22, 2014
Economy and Stock Market Handle a Five-Fold Jump in RatesThe verdict is in… Last week, at the end of its regularly scheduled meeting, the Federal Reserve said: 1)      It would continue to reduce the amount of money it creates each month. The Fed said it will be out of the money printing business by the end of this year. By that time, the Federal Reserve will have created more than $4.0 trillion new American dollars (out of thin air). .

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From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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