federal reserve

2015 Predictions: U.S. Dollar to Collapse?

By Friday, May 1, 2015

U.S. Dollar Collapse 2015The value of the U.S. dollar is anchored in trust. As a fiat currency, the U.S. dollar isn’t linked to any physical reserves, like gold or silver; it’s just paper. For the U.S. dollar to be worth anything, it has to be backed by an economy people have faith in. Otherwise, the U.S. dollar would collapse… Read More.
Regardless of its intentions, the Federal Reserve’s quantitative easing (QE) experiment has left America with many unintended consequences, namely a devalued U.S.

Stock Market Slowdown: Soft Data, Earnings Signaling Bull Market End?

By Monday, April 6, 2015

Stock market bull and bearA lot of economic news has been coming in softer of late and it’s affecting the stock market. That is to say that the data are often just slightly below existing Wall Street consensus.
Stocks have been churning all year and the market’s lack of direction is a result of all the usual suspects: the Federal Reserve, oil prices, global economic news, and geopolitical events.
Now that we’re on the cusp of first-quarter earnings season, the stock market may welcome the distraction…. Read More

Federal Reserve, U.S. Dollar: 2 Factors Supporting Higher Gold Prices

By Thursday, March 26, 2015

Gold PricesI am looking at two factors to see where gold prices are headed next: the Federal Reserve’s actions and the U.S. dollar. They are unanimously pointing toward the upside.
Let me explain…
Price of Gold and Federal Reserve’s Interest Rates Decision… Read More
On March 18, the Federal Reserve provided guidance on what it will do regarding interest rates. It is adamant that interest rates will rise. Fourteen members of the Federal Open Market Committee (FOMC) believed that the federal funds rate will be at or above 0.625% in 2015, up from the current rate of 0.25%.

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

Why Fed’s Interest Rate Increase Won’t Cause a Stock Market Collapse

By Friday, March 13, 2015

Rising interest ratesWith the broader stock market gyrating based on expectations of the Federal Reserve’s possible interest rate increase, the NASDAQ Biotechnology index and Russell 2000 are still holding up near their highs. A closer look at the current market dynamics suggests rising interest rates won’t be the cause of a stock market collapse.
Stock Markets Still Positive
The Dow Jones Transportation Average is in consolidation (since December of last year), down somewhere in the mid-single-digits from its all-time record-high…. Read More

Fed: Stock Market Expensive; This Second Warning Shouldn’t Be Ignored

By Friday, March 6, 2015

Federal ReserveThere is a significant amount of evidence that suggests stock market valuations are stretched to the extreme. Even the Fed thinks the market is expensive.
Federal Reserve Concerned About Stock Market Valuation… Read More
On February 24, 2015, the Federal Reserve issued its semi-annual monetary policy report. In this report regarding the stock market, word-for-word, it said, “Overall equity valuations by some conventional measures are somewhat higher than their historical average levels, and valuation metrics in some sectors continue to appear stretched relative to historical norms.” (Source: Board of Governors of the Federal Reserve System, February 24, 2015.) This is the second time the Federal Reserve has said something like this.

Three Economic Developments to Cause Sharp Rise in Gold Prices?

By Thursday, February 12, 2015

Economic Development to Rise in Gold PricesFor the next little while, I am watching three events—I’ll call them developments—very closely. These developments could impact gold prices and cause sharp movements to the upside in a very short time. What are these developments? Talks of Greece’s potential exit from the eurozone, rising interest rates, and an economic slowdown in the global economy.
Greece to Exit from Eurozone?
Not too long ago, Greece elected into power a radical left-wing party…. Read More

2015 Stock Market Forecast: What to Expect from Stocks in 2015

By Sunday, February 1, 2015

Stock ForecastStock Market Forecast for 2015
Going into 2015, my economic outlook is not optimistic on stocks. I don’t expect to see key stock indices perform anywhere close to how they did in 2014 or recent previous years. In fact, it wouldn’t be a surprise to me if we see them decline for the first time since 2009.
I say this because there are many negative factors at play for stocks. The Federal Reserve has told us it will raise interest rates in 2015 and 2016…. Read More

Two Major Concerns About Overvalued Stock Market Prices

By Monday, November 17, 2014

Stock Market 60 OvervaluedThe amount of money investors are borrowing to buy stocks is skyrocketing.
In September of this year, margin debt on the New York Stock Exchange (NYSE) stood at $483.87 billion—a new record-high. When the stock market was forming a top in 2007, margin debt was at a “then” record-high of $329.51 billion. Margin debt on the NYSE is now 47% higher than just before the previous big market sell-off. (Source: New York Stock Exchange web site, last accessed November 10, 2014.)
And according to the S&P 500 Shiller P/E multiple (a measure of the value of stocks compared to inflation-adjusted earnings), stocks are very expensive…. Read More

Prices of Gold/Silver Companies to Double from Here?

By Monday, November 10, 2014

Prices of Gold and Silver Companies to DoubleSilver is down 70% from its high of $48.70 an ounce back in April of 2011. And the calls from the mainstream are for silver prices to fall farther, as the Federal Reserve has stopped printing paper money and inflation is nowhere in sight. I beg to differ.
As the price of one ounce of silver reaches a four-year low, investors are running to buy the gray precious metal. To them, they see the price decline in silver as an opportunity…. Read More

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