This post was just published on ZYX Buy Change Alert Our read of the FOMC statement is that QE3 is on track. Many FOMC members favor easing soon as they seem to be focused on high unemployment. As a result of the statement, stocks are spiking up, bonds became stronger and dollar slumped. Most notable is the
European Central Bank Chief Mario Draghi may follow the U.S. lead and fire off his own bazooka. Requesting broader spending powers, Treasury Secretary Hank Paulson famously told Congress that he needed “a bazooka” to head off the financial crisis. German magazine Der Spiegel reports that the ECB is now considering
The markets are in a party mode and have forgotten the approaching dark cloud of the “fiscal cliff.” The fiscal cliff refers to the expiration of Bush tax cuts and simultaneous significant reduction in government spending in the United States at the end of the year. The Congressional Budget Office
The Federal Open Market Committee (FOMC) of the Federal Reserve System holds eight scheduled meetings in a year. The results of these meetings provide not only trading opportunities, but also extremely valuable data points for investments. The June 19 to 20 FOMC meeting is upon us. As always, there is
The two most important questions Will you lend to someone who is insolvent and has no plan to get out of insolvency at 1.47% for 10 years when inflation is running at about 3% and prospects of hyper-inflation loom? Will you sell good assets that are likely to protect your
The Federal Open Market Committee (FOMC) of the Federal Reserve today released its customary statement after its meeting. Fed Chairman Ben Bernanke seems to have borrowed a page from Mervyn King, Governor of the Bank of England. King has made an art of playing a game with the markets by a lot
The key to generating wealth over a long period of time is to identify when one macro cycle ends and a new macro cycle begins. In economics, a macro cycle is defined as a cycle of big picture economic performance, structure, and behavior. No bell is rung at the end
….Correct Information About The Law Here is what the law is: While S&P cut the long-term rating, it reaffirmed the short-term rating for the US at the top A-1+ level. This means money market funds will not be forced to sell US Treasuries. Most banks in the United States are
Standard & Poor’s (S&P) has just downgraded U.S. credit rating to AA+ from AAA. S&P analysis can be found here. THis dongrade presents investment opportunities in SLV, GLD, TBT, TBF, TLT, SPY and QQQ. S&P Analysis Here is an overview of the analysis by S&P: We have lowered our long-term