Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Precious metals news
Dec 20, 2022 - 08:24:08 PST
While wide ranging discussion covers many subjects but the two very different personalities come to a head on the concept of money velocity and its utility in predicting inflation and credit cycles.
While many market participants are concerned about rate increases, they appear to be ignoring the largest risk: the potential for a massive liquidity drain in 2023. Even though December is here, central banks’ balance sheets have hardly, if at all, decreased.
Investors are on the edge of their seats for any sign that Fed central planners will someday “pivot” to cutting interest rates, instead of raising them.
When the cognitive dissidence that’s leading analysts to simultaneously expect a recession and think that earnings growth will be strong next year resolves itself, we suspect that buybacks will be on the chopping block. All of which suggests that the real pain of this bear market hasn’t even started.
Dec 20, 2022 - 08:18:29 PST
If 2022 felt like a particularly volatile, negative year for stocks, that’s because it was. As the following chart via Tracy Alloway highlights, 2022 saw the largest number of 1% declines in the S&P 500 since 1952 when the current five day trading week was established for the NYSE.
Dec 20, 2022 - 08:13:49 PST
There is still plenty of pandemic assistance money available to municipalities from the $5.7 trillion originally approved.
Wells Fargo Ordered To Pay $3.7 Billion Over Widespread Illegal ActivityDec 20, 2022 - 08:03:40 PST
Wells Fargo has been ordered to pay $3.7 billion by the Consumer Financial Protection Bureau (CFPB) for a variety of illegal activity, including wrongfully foreclosing on homes, illegally repossessing vehicles, incorrectly assessing fees and interest, and charging surprise overdraft fees.
Posted this chart just before yellow break out saying:
- "That very probable yellow inverse h&s looks like a launch pad" And right now, it is backtesting orange trend line, while stair-stepping up the right side of the green rounded bottom.
With gold outperforming general stock market, global capital is flowing into the precious metals sector.
What does it all mean for the gold market? Well, the softening inflationary pressure combined with the economic downturn is fundamentally positive for gold and silver prices. They imply that the U.S. monetary policy will be less and less hawkish and more and more dovish. Additionally, the recessionary conditions should at some point increase the safe-haven demand for gold.
The Fed has massively inverted the yield curve. We explain why investors might be frontrunning themselves and why the long-term rate won’t budge.
Gold prices jumped 1% to above the key $1,800 level on Tuesday as the dollar dropped after the Bank of Japan's surprise policy tweak.
Economists say there is a 7-in-10 likelihood that the US economy will sink into a recession next year, slashing demand forecasts and trimming inflation projections in the wake of massive interest-rate hikes by the Federal Reserve.
Bitcoin dropped to its lowest level in three weeks as equities continued to trend lower.
After leaving policy rates unchanged, the 'easiest' bank in the world decided to dramatically modify its so-called Yield Curve Control framework and increase the quantity of government bonds it will buy each month (while the rest of the world is doing the opposite).
Treasury yields rose and US equity futures seesawed in choppy trade after a sudden hawkish move from the Bank of Japan sent the yen soaring and raised expectations it would join its peers elsewhere in raising interest rates.
The BOJ held 535.62 trillion yen ($3.92 trillion) in Japanese government bonds by market value at the end of September, excluding treasury discount bills, according to its Flow of Funds Accounts report published Monday.
The World Bank has cut its China growth outlook for this year and next, citing the impact of the abrupt loosening of strict COVID-19 containment measures and persistent property sector weakness.
China Races to Bolster Health System as COVID Surge Sparks Global ConcernDec 20, 2022 - 05:51:35 PST
Cities across China scrambled to install hospital beds and build fever screening clinics on Tuesday as authorities reported five more deaths and international concern grew about Beijing's surprise decision to let the virus run free.
Dec 20, 2022 - 05:49:13 PST
Pro-democracy activist Wei Jingsheng in conversation with Matt Pottinger on where China goes from here.