There can be little doubt that the US economy is strong right now. What’s harder to work out is whether stock prices have factored this in, or whether the bull market has more left in the tank.
US dollar
International currencies have all slipped against the US dollar. This means that global liquidity is tightening. So it's time to be cautious.
The message here is clear. The US Federal Reserve is slowly draining excess liquidity from emerging markets. That makes investing during these times particularly tricky.
The massive investment into liquid natural gas (LNG) over the past decade has resulted in the development of a new export industry. It may finally start to pay off over the next few years.
Friday saw the release of the non-farm payrolls report. The US economy created 223,000 jobs in May, compared to expectations of 188,000. The unemployment rate is just 3.9%, which, according to CNBC, is the lowest since April 2000.
China wants to grow and America wants to continue the living standard they enjoy today. So rather than focus on this trade war, why not look at real opportunities to grow your money?
Investors have retreated from European stocks after seeing political upheaval in Italy. The euro is once again facing an existential threat. What does this mean for world markets?
The US dollar rally has barely paused for breath since getting underway in February. Late last week, it took its toll on commodities. Oil fell nearly 3%. Iron ore fell 3.7%, while aluminium declined 0.7%. What will happen next?
While the US dollar index broke down through support in January this year, Gold did not follow. It still had a bit more work to do. In my view, gold’s move higher is just a matter of time. Many gold stocks have already performed strongly. If you want to profit from this potential move, you need to position yourself now.
It was interesting to hear Trump’s new economic adviser Larry Kudlow, say on CNBC last week that he would ‘buy king dollar and sell gold, that’s the trade that I love’. All this spending is going on not at a cycle low when government largesse is most needed. No, it’s happening right at the tail end of a historically long expansion.