- True Safe Havens Needed as Fed Monetizes Uncle Sam
December 04 2012 2:10 PM
A financial safe haven is generally an instrument that is expected to hold or increase its value in the face of market turbulence. It is used by investors to reduce exposure to declines resulting from downturns in the market or economy. What is considered a safe haven can change depending on market conditions, but a few asset classes typically come to mind. In the current financial landscape, there is a growing need for true safe havens.
- Euro: Not As Strong As It Looks
December 04 2012 1:01 PM
Despite ballooning exchange rates, investors can’t get rid of their euros fast enough, as various rate indicators are demonstrating.
- Central Banks Hedge Their Bets
December 04 2012 12:26 PM
Gold appears to be headed for an impressive price appreciation for the second half of 2012. Since the beginning of July, gold is up almost 10 over the same time frame. What is noteworthy here is that in recent months, fears of a worldwide recession have increased markedly. It used to be considered axiomatic that recession created adverse conditions for commodities (a reality that has helped push down the price of crude oil thus far in 2012). How then can we understand the movement in gold?
- Doing Away With Debt Ceiling Drama
December 03 2012 5:09 PM
Treasury Secretary Timothy Geithner made news last week by proposing to transfer the Congressional prerogative to raise the debt ceiling to the President. The change would essentially do away with the meaningless debt ceiling debates that have become ritual kabuki in Washington over the past few generations. Most Republicans have dismissed the proposal as a blatant executive power grab that will significantly weaken both the Congress and the minority party. While this is certainly true, Congress will only lose a power that it has never shown the slightest courage to actually use. But in truth, the proposal has the merit of refreshing honesty. By telling U.S. taxpayers, and the world in general, that the U.S. government has no intention of ever balancing its budget or limiting its accumulation of unsustainable debt, then perhaps we can begin to have an honest discussion about our economic future.
- Lear Capital: The Cliff, the Crash and Gold
December 03 2012 1:04 PM
We are all too familiar with Goldfinger, the Academy Award-winning James Bond flick that was all about an insidious effort to control the world supply of gold and its value. “Value.” That is the key word here. The entire world looks at gold as the great preserver of wealth and protector of the value of our dollar and the world’s currencies.
- USD/JPY Technicals and Fundamentals
November 30 2012 5:53 AM
Japan’s cabinet approved a new economic stimulus package of 880 billion yen Friday just weeks before an election the ruling party is expected to lose, while analysts questioned its likely benefits. The new spending of 880 billion yen (HK$83 billion) was more than double a package announced in October as the country gets set for polls that most say will usher in its seventh prime minister in six years.
- Shayne Heffernan: How to Develop an Inflation Hedge 2013
November 29 2012 12:44 PM
QE1, QE2, QE3, the Bernanke “Twist” and probably QE4 are pumping out money at a rate never before seen in history. The Fed will not only generate US inflation but it will be exporting that inflation to the rest of the World, especially emerging markets. It is interesting to note that many investors holding large cash positions view their money as an asset, when, it is really more of a liability at this point in time. The fact is that cash, correctly deployed, can allow an investor to sidestep the worst stretches of a financial crisis, like the one that may be on the way in 2013-2015.
- Socialism Takes Over France, Country Downgraded
November 28 2012 5:19 AM
Economist and Hedge Fund Manager Shayne Heffernan of www.livetradingnews.com has donwgraded his outlook on France as the new Socialist President Francois Hollande threatened Tuesday to nationalize a plant owned by steelmaker ArcelorMittal in an increasingly heated dispute in which ministers have said the multinational is no longer welcome in the country.
- Six Free Ways to Become a Better Trader
November 27 2012 11:53 AM
What is the mark of a good trader? The question is one of Wall Street’s most oft-debated subjects. Is it a portfolio of high returns? Nerves of steel? Steadfast self-discipline? Luck? Everyone has an opinion. At Benzinga, we believe that there is only one way to predict a good trader: those who are willing to work hard towards getting better will succeed. Prosperous trading is not an innate skill; it is learned.
- US Federal Reserve’s Balance Sheet
November 26 2012 2:49 PM
Data released by the Federal Reserve last Friday was supportive to the Treasury market on a supply/demand basis. The Fed’s balance sheet expanded $20-B in the last period of measure led by a $28.9-B increase in Mortgage Backed Securities MBS. After a slow start, the Fed has started to dramatically expand its balance sheet. The aggressive buying of MBS may provide some spill over support to Treasuries.
- Mark Carney of BoC to Replace Mervyn King as BoE Gov: GBP/CAD Reacts
November 26 2012 2:35 PM
Mark Carney, who is currently the governor of the Bank of Canada was appointed as the next governor of the Bank of England, replacing Mervyn King: Bloomberg The BoC has an unexpected vacant post, which it formed a special committee to recruit for. Forexlive
- Dollar tell us Stocks are Likely to Pullback – Simple Analysis
November 26 2012 4:41 AM
The stock market is at a very critical pivot point which I feel will generate opportunities in December and for the first quarter of 2013. Trading with the trend is not always an easy task. It is human nature to predict and jump to conclusions and usually it’s better to trade with the trend no matter what your emotions are telling you. The current trend is down and I stick with that until we are proven wrong.
- The Week Ahead: 25th November 2012
November 23 2012 3:38 PM
With a reported 150 million Americans shopping on Black Friday retailers will hope they can turn around their fortunes this holiday season. At the time of writing the extent of sales was not known, but retailers will be hoping for a bounce in sales after a 0.3% decline in October, reversing an increase in sales growth in Q3.
- Euro Steady as A Greece Deal Looks Likely on Monday
November 23 2012 9:54 AM
The euro held steady above $1.28 on Friday morning as investors wait for a final meeting of European Union finance ministers and Director of the International Monetary Fund Christine Lagarde set to take place on Monday. The meeting will put an end to the speculation about whether or not Greece will receive its next installment of financial aid and what the new bailout terms will be.
- EuroCrisis: Europe Heads to Depression
November 23 2012 9:32 AM
The eurozone economy is headed for its weakest Quarter since Q-1 of Y 2009, according to business surveys that showed companies toiling against shrinking order books in November.
- Debt Crisis Solutions are Leaving Investors Behind
November 21 2012 1:38 PM
How the losses are being paid for... IT USED TO BE taken for granted that you could put aside some money and earn enough interest to be better off than when you started. As the world continues to struggle with the aftermath of an enormous credit boom and its subsequent bust, though, this kind of objective seems hopelessly naïve. Events in Europe and the US this week are the latest reminder of this. To see why, let's start with a riddle: If I owe you €10,000, and the amount of money I have is zero, is it possible to let me off the hook without you taking a loss?
- Patriotic Millionaires Unmasked
November 20 2012 6:06 PM
Despite the breathless post-election "think pieces" that have drawn sweeping and deeply considered conclusions about the political drift of the country, at its core President Obama's re-election is easy to understand. He essentially promised millions of middle and working class voters that if he were to be re-elected, they would receive benefits paid for by the rich. You don't need to read a Time Magazine cover story to untangle this political strategy. Now that he has been given a second term, Obama needs to deliver the goods by raising taxes on the rich and only the rich. He will be "asking" them to pay their "fair share," (as if "asking" and "fairness" have anything to do with it). In reality the wealthy already pay taxes at a much higher rate than average Americans and in many cases will now have to pay more than half of their income in federal, state, and local taxes.
- AUD/USD to Fall as Rates Drop
November 20 2012 2:35 PM
Australia’s central bank is weighing further interest rate cuts, though higher-than-expected inflation and improvements in the global economy underpinned its decision to keep rates steady earlier this month.
- Risk Assets are Ready to Soar
November 20 2012 10:48 AM
Nearly every key factor behind a bullish gold price is now currently in place save one. Once this single piece of uncertainty is removed, risk asset prices should soar. First off, the global economy is accelerating to the downside and this is causing central banks to become the most dovish they have ever been in the entire history of fiat currencies. For example, the leader of Japan's LDP party, Shinzo Abe, called for the Bank of Japan (BOJ) to raise its year over year inflation goal to 2-3% and to engage in unlimited money printing until deflation is fully vanquished. He said if elected, he would forge an alliance with the BOJ to launch an all-out war on deflation and to attack the Yen-blaming a strong currency as the primary impediment to Japan's economic recovery. Mr. Abe also called for the BOJ's policy rate to be cut below zero.
- Forex: Euro Optimism Hit By Deepening Recession, Pound Looks Higher
November 20 2012 9:39 AM
The Euro slipped to 1.2763 after Moody’s Investor Services lowered France’s credit rating to AA1 from AAA, but we’re seeing the EURUSD track higher ahead of the EU meeting as European policy makers increase their efforts to keep Greece within the monetary union.