Not only did the Fed miss its window of opportunity to hike rates, but it did so at the worst possible time, launching the first tightening cycle in 11 years just as US manufacturing entered its first recession since the financial crisis, just as the credit cycle entered its slowdown phase, and just as the…
As far as indices go, the Dubai Financial Market General Index (DFMGI) is a cap-weighted price index which features the stocks of listed companies. It is currently trading at 3,073.07 with a daily gain of 2.92% (December 17, 2015). The DFMGI has a 52-week low of 2,851.24 and a high of 4,253.28. The 1-year return…
A few months back nobody imagined that the stocks would rally if the Fed enacts a lift-off. But it happened in reality. On December 16, the Fed raised its key rate after almost a decade – though by a meager measure of 25 bps – but equities hardly paid heed and soared. No doubt, this…
Immediately after the Fed hiked interest rates last Wednesday – after sitting at 0% for 7 years – markets acted pretty much as one might expect. The Fed tightens monetary policy when the economy is strong so rising stock prices, rising interest rates and a strong dollar are all things that make sense in that…
The session on Monday will more than likely have very little in the way of economic announcements or headlines that can move the market, so having said that it’s difficult to imagine major volatility. Also, we’re getting close to the holidays, so having said that it’s very likely that the markets will be fairly steady….
The prices of the metals were sagging. Silver was trading around $13.80. On Wednesday, Janet “Good News” Yellen said the magic words. The Federal Reserve hiked the federal funds rate by 25 basis points. The price of silver was surging in anticipation of the news (we assume). Within an hour or so of the announcement,…
This past fall, many financial advisors and commentators worked themselves into a tizzy over an incendiary article titled, “If You Have Savings In Your 20s, You’re Doing Something Wrong.” In it the author Lauren Martin rejected every good piece of financial advice offered by her parents – and mine, too. Now, Martin may be the…
Gold: With the commodity turning back to close on a rejection candle ahead of the 1046.30 level the past week, Gold faces risk of more strength on price rejection. On the downside, support comes in at the 1050.00 level where a break will turn attention to the 1040.00 level. Further down, a cut through here…
Richard Werner – an economics professor and the creator of quantitative easing – says that it’s a myth that interest rates drive the level of economic activity. The data shows that the opposite is true: rates lag the economy. Economics prof Steve Keen – who called the Great Recession before it happened – points out…
Written by Michael Kulla Climate change is unlike any threat human society has encountered. In 1977 Exxon’s executives warned that the fossil fuels Exxon (XOM) produced would prove to be catastrophic, requiring major reductions to reduce the greenhouse effect. This was long before the issue had risen to public awareness. For a dozen years Exxon had a…
