With the central banks in cahoots with pursuing a policy of staggering global stimulus, a risk-recovery rally could now be in play. The market has got its fix with over $18 trillion in global stimulus snorted up the nostrils of global markets, the central banks in cahoots with their asset purchases (QE) to infinity, has ensured a melt-up in risk assets, while the fundamental meltdown In the age of Zombies and bankrupt companies with...
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The great gold rally continues, it is a victory lap for gold bugs and those advocating a system of sound money, which supports a store of wealth and sustainable development. Since time immemorial an ounce of gold has always been able to buy a fine suit. Precious metals, particularly gold and platinum is often portrayed as a barbaric relic of the past, but the recent gold rally underscores gold as a prime haven asset that protects...
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The central banks pandemic response to the great lockdowns of 2020 was a lot more of the same, massive liquidity creation to finance a multi-trillion dollar asset-purchase program, known as quantitative easing QE. A coordinated global monetary policy is now underway with post-pandemic QE to infinity being the central banks pandemic response QE max is being deployed in cahoots with the world central banks to fend off a multiple asset...
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A momentum trading strategy would have made sizeable profits for traders and investors in the recent crude oil price recovery, which has seen crude oil WTI price rise from $15.06 in late April to $31.9 at the time of writing this piece. Put another way, momentum trading/investing crude oil, at best entry and exit levels would have yielded a 100% return on capital, and if the trade was leveraged by say 10, those returns would have been...
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Could the no-nonsense investment advice of late Marty Zweig, “don’t fight the Fed,” help investors and traders navigate these treacherous markets. Zweig had a simple investment philosophy, “don’t fight the Fed” For those following that advice there was a pot of wealth to be gained by participating in the Fed-induced stock bull market, which followed the financial crisis of 2008 and the Great Recession. Don’t fight...
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Is the bear market rally over? The S&P is trading a significant 30% above its March 23 lows and there are varying views that this is not a bear market rally but the beginning of a bull market. It is worth noting that bear market rallies are not uncommon History is full of instances of bear rallies that eventually surrender to yet another, lower bottom. For example, the 1929 stock market crash is an example of an impressive 47%...
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