(This post was published this morning on ZYX Buy Change Alert.) Obama has cut his vacation to Hawaii short and is reportedly on his way to Washington. The stock market is encouraged. Gold and silver momo crowd started buying aggressively on the news. This is consistent with gold and silver momo
This post was just published on ZYX Buy Change Alert. We have received a large number of emails in response to the ‘Morning Capsule,’ BARN BURNER U.S. EMPLOYMENT DATA. Most emails expound conspiracy theories and flaws in the employment data. Most emails have asked our opinion on conspiracy theories. Our focus
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
Now it is universally accepted that growth in China is slowing. If a large number of communications that we receive are any indication, North American investors make two underestimations: first how much China’s growth is really slowing, and second how much it can hurt their investments in stocks, bonds and
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
….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