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“The Fed however, may be attempting to implement a contrarian, controlled demolition of the U.S. bubble-economy through interest rate increases. The rate rises will not slay the inflation ‘dragon’ (they would need to be much higher to do that). The purpose is to break a generalised ‘dependency habit’ on free money.”
The Federal Reserve will be the backstop of the Treasury market this year to alleviate dysfunction resulting from its increasing size and the retreat of regular buyers. That’s the view of Credit Suisse Group AG analyst Zoltan Pozsar, who in a note to clients Friday predicted the Fed will restart asset purchases during the summer of 2023.
Jan 9, 2023 - 08:41:04 PST
The Federal Reserve will be the backstop of the Treasury market this year to alleviate dysfunction resulting from its increasing size and the retreat of regular buyers. That’s the view of Credit Suisse Group AG analyst Zoltan Pozsar, who in a note to clients Friday predicted the Fed will restart asset purchases during the summer of 2023.
“Gold may continue to outperform other haven assets, with an added tailwind from central bank purchases and also displaying its characteristic as an inflation hedge,” -from ZH's Gold,The Currency Of Last Resort
Gold prices extended gains to an eight-month high on Monday as a weaker dollar made greenback-priced bullion cheaper for overseas buyers, while investors bet on a less-aggressive rate-hike trajectory from the U.S. Federal Reserve this year.
China reported an increase in its gold reserves for a second straight month, topping up holdings again after its first reported purchase in more than three years.
Jan 9, 2023 - 07:06:53 PST
In 2008 the derivatives implosion was diverted - the risk is now immensely higher, resulting with continued monetary expansion - a plus for the PMs sector.
The first big rally of 2023 will be put to the test next week when investors face a highly-anticipated inflation reading and fourth-quarter earnings from Wall Street's biggest banks.
Japanese Prime Minister Fumio Kishida said careful explanation and communication with markets would be part of consideration on monetary policy, when asked about possible future changes in the Bank of Japan’s ultra-loose policy.
The world economy looks to be transitioning to a more difficult era where interest rates will be higher, geopolitical tensions greater and uncertainties more pronounced.
The ‘Everything Bubble’ Has Popped and the Experts on Wall Street Were WrongJan 9, 2023 - 06:58:08 PST
Morgan Stanley analysts were sure Carvana stock would hit $430 a share and the crypto faithful believed Bitcoin would top $1 million.
Bitcoin or Gold? Beware the ‘Malignant Tumor,’ Says ‘Black Swan’ Guru Nassim Nicholas TalebJan 9, 2023 - 06:05:31 PST
"Technology comes and goes, gold stays, at least physically. Once neglected for a brief period, Bitcoin would necessarily collapse.”
Experts joke that some Russian-mined gold in British vaults “is so old it has double-headed Imperial eagles stamped on it”. Ownership shifted into non-Russian hands decades ago, they say. But investors are worried that Russian gold could be used for sanctions busting. The London Bullion Market Association is therefore registering it all.
The U.S. dollar on Monday neared its lowest point in seven months against other major currencies after data suggested the Federal Reserve could slow the pace of its rate hikes, while China reopening its borders boosted riskier currencies.
Markets enjoyed an energetic bounce on Friday following weaker than anticipated economic news. This data increased the chances of a 0.25% hike rather than a 0.5% increase at the next Fed meeting at the end of the month. Market participants are still very focused on inflation as the primary economic issue.
The major US banks will set the stage for a new year fraught with economic fears and a new earnings season when they deliver fourth-quarter results starting Friday. As recession has increasingly become a question of “when” not “if”, investors will focus on the financial institutions’ outlooks...
Goldman Sachs Group Inc. plans to cut 3,200 jobs starting this week, according to a person familiar with the matter, part of a wave of cost-cutting on Wall Street after a big slump in dealmaking. The layoffs amount to nearly 7% of the 49,000 employees on the U.S. bank’s payroll as of September. Goldman’s executives have been [planning since at least December to slash...
Billionaire Leon Cooperman Says the Bear Market Is Expected to Continue in 2023Jan 9, 2023 - 05:46:07 PST
Feeling optimistic the new year will usher in a change in stock market dynamics and shift sentiment from bear to bull? Well, Leon Cooperman has some bad news for you. The billionaire investor has been a fully-fledged bear for a while now and 2023 has done little to change his stance. "Anybody looking for a new bull market any time soon is looking the wrong way,” ...
Treasury yields bounce back from lowest levels since mid-December as investors monitor China's reopening and await this week's U.S. inflation data...
Over 800,000 UK households will see their mortgage rates more than double this year as they come off low fixed-rate deals, adding to the pressure on living standards.