With the recent break of oil back below $50.00 a barrel, the commodity supercycle driven by the superlative rise of the emerging markets looks like it’s dissipated...and we could be facing an economic crisis. The Thomson Reuters/CoreCommodity CRB Index fell to a 52-week and six-year low, adding to…
Gold prices could plunge below $1,000 an ounce. At least, that’s the latest gold price forecast from Goldman Sachs commodity research headJeffrey Currie. “The risks are clearly skewed to the downside in this environment,” he told Bloomberg in a telephone interview on Tuesday. “There is a probability that…
No matter where you look, major economic hubs in the global economy are struggling to show growth. According to the German finance ministry, Germany’s economy grew at only 0.3% in the second quarter of this year after growing a similar amount in the first quarter. (Source: Reuters, July…
The global economy is headed towards an economic slowdown and it will take U.S. stock prices down with it. The growth rates of major economies are anemic. China is growing at its slowest pace in two decades, putting pressure on Australia’s economy. Japan has been going in and…
While mainstream analysts dismiss the risks associated with a debt default, Marc Faber is warning that such a catastrophe could spark the next stock market crash and possibly an economic collapse in 2015. During an interview on Monday, July 7th with Bloomberg, the publisher of the Gloom, Boom…
To gauge activity in the global economy, I follow two indicators very closely: how sales at multinational Caterpillar Inc. (NYSE/CAT) are faring; and trade activity in the global economy. Global Economy Indicator #1 The chart below plots the percentage change in three months rolling sales at Caterpillar Inc.,…
It has been six years since the global economy and U.S. entered the worst recession since the Great Depression. While many are championing the economic recovery, on closer inspection, it looks like history might repeat itself sooner rather than later. U.S. Economy Grows at Slowest Pace Since WWII…
My Five Stock Market Predictions for 2015 Catalysts for Growth in Place for Solid 2015 Admittedly, stock market forecasts can mostly be flimsy attempts to predict what irrational investors do in uncertain times. That doesn’t prevent most pundits from being overly optimistic. At the end of 2013, I…
Global financial crisis 2015: is it really possible? Below you’ll find the answer, as I dive into the global financial crisis causes and what today’s economic events have to say. Global Financial Crisis Explained… It’s only been a few years, but there are already reams and reams of…
With 20 central banks indicating they may lower interest rates even further, a world economic slowdown underway, and bellwether copper prices collapsing, U.S. multinational companies (and their stock prices) will not escape the malaise facing the global economy. Central Banks Concerned Regarding Global Economic Slowdown? The mainstream media…
The U.S. dollar has been on a tear since the summer of 2014, but truth be told, the anti-dollar movement is strong and gaining traction. For a currency to remain dominant in the global economy, especially for it to be a reserve currency, three factors need to be…
The idea of an impending stock market crash may seem pretty untenable right now. After all, compared to the rest of the world, the United States had the most encouraging economic, business, and financial outlook in 2014, and the same goes for 2015. But there are several key…
For 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…
To see where the stock market is headed in 2015, we don’t have to look much past these two important economic factors: the U.S. dollar and the economy, both domestically and outside the U.S. Rising U.S. Dollar to Impact U.S. Equities After the Great Recession, to drum-up sales,…
Stock 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…
As I close out today with my last editorial for the month of January 2015, I want to share some very interesting observations with my readers. This morning, as I write this issue, the futures market is showing the Dow Jones Industrial Average will open down 150 points.…
Simply put, there is no support or interest in buying oil at this time, and that means oil prices could realistically hit $40.00 a barrel. Oil prices that low could cripple the global economy. Let me explain... The Decline in Oil Prices When the West Texas Intermediate (WTI)…
There are too many analysts who are concerned about deflation, a period during which the price of general goods declines. Because of this, analysts are not too keen on gold. They say the yellow metal is only good for one’s portfolio when there’s inflation. When prices are declining,…
In the third quarter of 2014, gross domestic product (GDP) for the eurozone region increased by 0.2% from the previous quarter, when it increased only 0.1%. The growth in the region has been very dismal. Major countries like Germany and France are facing economic scrutiny now. In the…
