If you think Greece is holding back the eurozone from an economic collapse, you may be mistaken. At least, that’s according to former hedge fund manager and Goldman Sachs alumnus Raoul Pal.
In an interview with CNBC’s Fast Money on July 31st, the publisher of the Global Macro Investor newsletter and the founder of Real Vision TV, said “Germany is the big exporting nation of Europe, and I see .
Youth unemployment hit a 33-year high in June, according to the latest data from the Italian national statistics office, signaling the troubled country and the wider eurozone area could be on the verge of economic collapse.
It’s the disappointing unemployment rate that indicates the economic collapse would be imminent. Many economists had expected that the unemployment rate would fall to 12.3%. But it turns out that .
The NASDAQ opened higher on Friday July 17th after strong earnings results from Google Inc. (NASDAQ/GOOG, GOOGL) and positive economic data. This could eventually give clues on the timing of an interest rate increase.
The U.S. dollar is heading for its biggest gain since May after economic data increased the possibility of an interest rate hike. In China, the Shanghai Composite Index rose more than three percent as the government .
The NASDAQ opened higher on Thursday, July 16th, as investors cheered a Greek bailout approval and strong corporate earnings. European stocks climbed and bond yields fell on Thursday after the Greek’s parliament approved a proposed bailout plan. Eurozone stocks rose 1.5% to 3,676 points and Germany’s DAX rose 1.6% to 11,722 points. Federal Reserve Chair Janet Yellen insisted the U.S. is on track to raise interest rates this year. Amid .
The NASDAQ opened flat on Tuesday July 14th amid disappointing data in retail sales. Abroad, investors remain uneasy about talks surrounding Greece’s bailout package.
European shares turned lower on Tuesday after a four-day rally due to uncertainty over whether the measures would be passed in Greece’s parliament. The yield 10-year German bond was at 0.87%, marginally higher on that day. Following the sharp drop on Monday, the euro was 0.21% .
Wall Street opened sharply higher on Friday July 10th, as investors cheered the Chinese rebound and felt optimistic over the new submitted proposal by Greece to creditors to win new funds and avert bankruptcy.
Chinese stocks rose sharply for the second day on Friday, with the Shanghai Composite Index closing up 4.5% higher. International stock markets in Asia and Europe rose one percent and the euro rose sharply after the .
Greeks are rushing to buy hard assets—from ovens, to refrigerators, and dishwashers—any hard assets that can hold their value to protect their savings, according to a recent report in The New York Times. (Source: Greeks Spend in Droves, Afraid of Losing Savings to a Bailout, July 9, 2015.)
Greek banks have been shut down since June 29th, and are expected to remain closed until Friday. The government-imposed capital control of .
The most important instrument in the European Central Bank’s (ECB) crisis-fighting tool chest has been approved by the EU’s highest court, giving authorities the equipment they need to fight a potential financial crisis in Europe.
On Tuesday, June 16th, in a precedent setting decision, the EU’s highest court approved a sweeping monetary stimulus program from the European Central Bank. When European stocks were in freefall and bond yields were skyrocketing, .
On Tuesday, May 19, the euro fell almost one percent against the U.S. dollar. This was mainly due to a top-ranking executive at the European Central Bank (ECB) signaling that the central bank will increase the pace of its bond buying. (Source: Financial Times, May 19, 2015.)
The ECB has embarked on quantitative easing (purchasing bonds) since March of this year. It plans to increase its bonds purchases in May .
The euro-to-U.S.-dollar value is headed in a downward direction, despite an improving European economy. Investors should follow the lead of the European Central Bank (ECB) and cease to let economic growth forecasts fool them.
A year ago, the euro was worth US$1.38. As it currently stands, the euro is only worth US$1.10—or 20% less. My euro vs. U.S. dollar forecast calls for an even lower euro wherein parity or lower .
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.
Estimates Aug. 28, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter)