The ECB Talks Negative Interest Rates: Why You Should Be Scared
Today, the European Central Bank broke out the negative interest rate talk. This means the days of banks paying YOU to keep YOUR money are coming to a close. Instead, be ready to start paying the bank to hold your money. Scary thought. Regardless of who is paying whom, the bigger issue is what this says about the European economy. ...
The Japanese Nikkei 225 continues to hold above 13,000, but with the index still up 56% from its recent low in mid-October, I continue to advise you to look elsewhere. The index was down 23% after its recent correction, but it has rallied four percent since. Even so, I would avoid Japanese stocks. (Read “Why Nikkei Sell-Off May Foreshadow Things to Come.”)
Forget Stocks, It Is The Japanese Yen That Is Moving Markets
As we all know, almost every central bank in the world is printing money to boost exports and support asset prices in the stock market. To their credit, the money printing idea has worked as markets around the world have been rallying. Japan is now the most aggressive money printing country. The Bank of Japan (BOJ) said that they would put $1.4 trillion into the economy over the next two years. The Nikkei 225 Index (Japanese stock market) has gained nearly 7,000 points or 80.0 percent since October 2012. This rally in the USD/JPY, and the Nikkei 225 Index has been parabolic and shows the power of money printing or the devaluing of the currency.
Complacency among investors is extremely dangerous. Many investors, both retail and institutional, have very short memory spans.
Why the Eurozone Recession Is Important for America
George Soros knows a thing or two about making money from big bets. In 1992, Soros made a $10.00 short wager on the British pound and walked away with a billion dollars in profits.
Global Economy Still at Risk, Just Look at the Jobs Picture
Why Earnings Outlooks Are More Important Than This Quarter’s Results
With the financial reporting season underway, one of the most important considerations is not the most recent quarter’s earnings results, but the earnings outlook companies are giving for the remainder of the year.
The eurozone and the euro are still around, but the more I see what is happening in that region, the more I think something must be done, given the financial crisis.
Don’t Believe the Chart: Gold Still Looks Promising
While I do like gold, I’m somewhat perplexed over the metal’s near-term stock chart. The chart shows indecision and indicates a potential downside break at $1,550, with gold potentially falling out of its current sideways channel.
Shocking Investment Idea No One’s Talking About—Yet
As we all know, the public has really not participated in the stock market since the 2008 credit and banking crisis. Since that point in time, the public has developed even more of a sour taste for Wall Street. Events such as the flash clash, LIBOR manipulation by the banks, high frequency trading manipulation..