U.S. dollar

What Canada/China’s Yuan Trade Deal Means for U.S. Dollar

By Friday, November 14, 2014

How Long Will This U.S. Dollar Rally LastAs the chart below illustrates, since July of this year, the U.S. dollar has been rallying against other major world currencies.

I, for one, do not expect to see the rally in the U.S. dollar sustained. I believe the U.S. dollar is currently rallying, because other parts in the global economy are doing worse than the U.S. While the U.S. dollar may rise in the short-term, because our central bank … Read More

National Debt Rising 2.3 Times Faster than Budget Deficit?

By Wednesday, October 29, 2014

National Debt Rising 2.3 Times Faster than Budget DeficitFor the U.S. government’s fiscal year ended September 30, 2014, the government registered a budget deficit of $483 billion—the lowest budget deficit since 2007. In fiscal 2013, the budget deficit was $680 billion. In each of the previous four fiscal years, it was more than $1.0 trillion per annum. (Source: U.S. Department of the Treasury, October 15, 2014.)

On the surface, this is great news.

And logically, one would think, … Read More

Gold Mining Companies Selling for Pennies on the Dollar

By Monday, October 13, 2014

Gold Stocks The Most Beaten-Up Sector of the Market Finally Bottomed OutThe fundamentals for higher gold bullion prices continue to impress. The table below illustrates the output from U.S. mines in the first six months of 2014 compared to the first six months of 2013.

In the below chart, we quickly see that since March of 2014, production of the precious metal has been quickly declining. Meanwhile, on the demand side of the equation, we see increased demand for gold bullion … Read More

Another Solid Earnings Season Ahead for Existing Winners?

By Friday, October 10, 2014

Solid Earnings SeasonOne large-cap that always reports early is Costco Wholesale Corporation (COST). The company’s numbers came in solid.

Costco hit a wall not too long ago and was hard pressed to produce growth. But the company’s latest quarter beat the Street with considerable sales strength in the month of September.

In its most recent quarter, there was considerable growth in the company’s cash position and shareholders’ equity improved significantly.

For the … Read More

The Biggest Risk This Coming Earnings Season

By Friday, October 3, 2014

Biggest Risk This Coming Earnings SeasonFinancial reporting is ramping up and what corporations actually say about their businesses is the best market intelligence available to investors.

Acuity Brands, Inc. (AYI) is in the business of making lights for indoor and outdoor applications. Based in Atlanta, it’s highly likely you’re already using this company’s products without even knowing it.

The business of manufacturing lighting is not front-page news, but that doesn’t matter because for this company, … Read More

The Nine-Month Check-Up

By Wednesday, October 1, 2014

Nine-Month Check-UpWith nine months behind us this year, today we look at how two popular forms of investment have done in 2014 and where I think they are headed for the remainder of the year.

Starting with stocks, the Dow Jones Industrial Average closed yesterday up 2.8% for the year. Given the risk of the stock market, 2.8% is no big gain. I wrote at the beginning of 2014 that the … Read More

Where the U.S. Dollar Is Headed and What It Means to You

By Monday, September 29, 2014

U.S. Dollar Is HeadedFor the U.S. federal government’s fiscal year, which ends this Tuesday, the Congressional Budget Office (CBO) predicts a budget deficit of $506 billion. (Source: Congressional Budget Office web site, September 26, 2014.)

But just because our annual deficit is declining, that doesn’t mean our national debt is rising by an equal amount.

In fact, between September 20, 2013 and September 20, 2014, the U.S. national debt increased by $1.0 trillion. … Read More

A Rational Look at Gold

By Wednesday, September 24, 2014

Rational Look at GoldThe fundamentals that drive gold prices higher are in full force and improving. Central banks are buying more of the precious metal (to add to their reserves), while countries that are known to be big consumers of gold bullion post increased demand.

According to the India Bullion & Jewellers’ Association, India’s monthly gold bullion imports are expected to rise by as much as 50% in the coming few months—in the … Read More

Should You Buy Into the U.S. Dollar Rally?

By Wednesday, September 17, 2014

U.S. Dollar: The Best of the WorstSince May, when it was near an all-time low, the U.S. dollar has rallied. Compared to other major currencies of the world, the greenback is up five percent since July, as the chart below illustrates.

The question: should investors get into this U.S. dollar rally?

Dear reader, the U.S. dollar is not moving higher because the fundamentals of the U.S. economy are getting better. It’s moving higher because other parts … Read More

Why Aren’t Gold Prices Rising?

By Wednesday, August 20, 2014

Guess Who Just Bought Gold for the 14th Consecutive QuarterThe numbers are in…

In the second quarter of 2014, world central banks bought 117.8 tonnes of gold bullion compared to 92.1 tonnes a year earlier—a jump of 28%. Central banks have been net purchasers of gold bullion for 14 consecutive quarters!

According to the World Gold Council, “Economic and geopolitical events throughout the world are sources of ongoing instability and uncertainty. Such events reinforce the requirement for appropriate risk … Read More