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Central Bank

CAD/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…

Alan 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…

On 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…

Irrationality 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…

With 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…

The “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…

In 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…

On 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.…

The 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…

The U.S. dollar is still regarded as the reserve currency of the world. The majority of international transactions are settled in U.S. dollars and most central banks around the word hold it in their foreign exchange reserves. But since the Credit Crisis of 2008, and the multi-trillion-dollar printing…

The monetary environment is still highly favorable to stocks and should continue to be so well into 2015. However, while this market can handle higher interest rates, stocks can only advance in a higher interest rate environment if gross domestic product (GDP) growth is there to back it…

My colleague Robert Appel (BA, BBL, LLB) issued a research paper to the subscribers of one of his financial advisories earlier this week. I thought it important that all my readers be aware of and understand the crux of what Robert is saying about our current economic situation…

The tally as of this morning: The stock market is up 2.4% so far in 2014 as measured by the Dow Jones Industrial Average, while gold bullion is up 8.1% for the year. “As an investor, do I get into gold or stocks at this point in the…

There are two important charts I want my readers to see this morning. The first is a chart that is an indirect measure of demand in the global economy. Right now, the Baltic Dry Index (BDI) sits at its lowest level of the year. Since the beginning of…

With the Dow Jones hitting 17,000 being pretty likely in the not-too-distant future, from there, it’s only another 18% or so until the Dow hits 20,000, which is pretty incredible. These numbers seemed so unrealistic just a few years ago but now, it’s not too farfetched. The most…

In 2012, I predicted that if the Federal Reserve couldn’t get the economy growing again, it would take interest rates into the negative zone. Well, yesterday, the European Central Bank (ECB), the second-biggest central bank in the world, trumped the Fed and became the first major central bank…

The Chinese economy had been growing at about 10% a year, like clockwork, for years. Now, China is in the midst of an economic slowdown, with growth expected to come in this year at 30%–50% below China’s five-year average growth rate. Why is China’s economy growing so slowly,…

Did you see this story in the Wall Street Journal last Friday? “Retirement investors are putting more money into stocks than they have since markets were slammed by the financial crisis six years ago… Stocks accounted for 67% of employees’ new contributions into retirement portfolios in March… That…

Those who follow the stock market closely know that on days when we hear the chairwoman of the Federal Reserve speak and she mentions something about “easing” or how the central bank will continue to use its “extraordinary measures” for a long period of time, the stock market…