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.
The latest news to worry investors is the prospect of a trade war. The big problem here is that the post-Second World War global economy isn’t really designed for balanced global trade. It was for a little while. But as the US began to consume more than it produced in the 1960s, gold started leaving Fort Knox to balance the tab.
With Trump’s tax cuts now in effect, US capital outflows will increase significantly this year and beyond. Given the stronger activity this is likely to generate, the current account deficit will probably rise above US$500 billion again in 2018. In short, that’s a big supply of US dollars...
If gold price breaks through US$1,370 it could indicate the start of a new long term uptrend. And this is why it’s rising. The real story behind gold’s rise — and the biggest financial story you’ve never heard of this year — is the declining US dollar.
US, South Korean and Japanese aircraft have carried out a show of force. As markets react to the oscillating tensions in the Pacific, there are both opportunities and dangers, and plenty of them.
No other topic is dominating headlines at the moment like Trump’s verbal assault on North Korea. The US president has promised ‘fire and fury’ in response to..
This year Bitcoin will go mainstream. Bitcoin is rapidly becoming a legitimate alternative to the fiat dollars we have offered to us today.