For six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis. All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. Similarly, anyone with a functioning
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Almost every other day I read an article telling me that owning Gold is dumb or that Gold is doomed as an investment. These articles would be useful or insightful if they weren’t based on “analysis” that is either misleading or downright wrong. To whit… Gold has absolutely CRUSHED stocks
It would be a lot easier to be bullish today if the entire financial system wasn’t based on fraud and BS. Every explanation we see regarding the bull market in stocks is really just a cover for the fact that Central Banks spent $14 trillion propping up the bond bubble.
For over six years, the markets have been moving based on Central Banker actions and words. The first phase (2009 to 2013) was dominated by action (ZIRP and QE). The second phase (2013 to the present) was increasingly reliant on words (verbal intervention) as most Central Banks had by then
The Fed Vice-Chair has begun laying the groundwork for NIRP. The US Federal Reserve is obsessed with market reactions to its policies. Because of this, anytime the Fed plans to announce a major change in policy, it preps the markets via numerous leaks and hints… oftentimes for months in advance.
Something absolutely astounding has happened. Two weeks ago, the head of the Bank of Japan, Haruhiko Kuroda stated that Japan has a “potential growth rate of 0.5% or lower.” By way of context, remember that the Bank of Japan has been at the forefront for ALL monetary policy for decades.
The stock rally of the last few days has investors wondering if the bottom is in. Unfortunately, it very likely is not. High Yield bonds have lead stocks to the upside. They are now leading to the downside, and the High Yield bond market indicates we have further to fall.
The world has yet to fully digest what is currently happening in Japan. Japan is the global leader for Keynesian Central Banking insanity. The ECB and US Federal Reserve began implementing ZIRP and QE after 2008. The Bank of Japan has been employing both ZIRP and QE since 2001. Put
As we outlined last week, the bursting of the bond bubble has begun. CNBC and the financial media may spend 99% of their time talking about stocks, but bonds are the single most important issue for Central Banks. When you consider everything in the context of the bond bubble, every
The stocks futures markets are off the lows from last week as traders are playing for the usual Monday rally. However, the fact remains that the technical damage from last week’s breakdown has been SEVERE. Stocks even violated the “neckline” on the Head and Shoulders pattern they’ve carved out since
Dear Investor, Stocks are crashing before the market’s open. As I warned earlier this week… it’s very likely that the Bull Market in stocks is over. Indeed, the breakdown is actually MUCH bigger than most investors realize. We’ve actually broken THE bull market line that goes all the way back
The FANGs are beginning to break down. FANG is an acronym that stands for Facebook, Amazon, Netflix, Google. These are four of the top performing stocks of 2015. Netflix was the top stock for the S&P 500 returning 134% in 2015. Amazon was #2, returning 118%. Google returned 44% and
European Central Bank (ECB) head Mario Draghi is once again hoping that verbal intervention will accomplish what monetary intervention has failed to do. Back in 2012, the EU banking system was on the verge of collapse. At that time, various European banks were lurching towards insolvency as the senior most-asset
Europe is now ground zero for the war on cash. Europe is perhaps the most centrally controlled political system in the world: a place in which political and economic policies range from socialist (the public sector accounts for 30% of “free market” German’s employment) to extremely socialist (the public sector
As we’ve noted previously, the War on Cash is accelerating. This will culminate in a Cash Ban, or ban on physical cash. In recent months: The SEC and other regulators have implemented legislation allowing Money Market Funds to lock in your cash for up to 10 days during the next