On the macroeconomic front, the major event for the week ahead is the Federal Reserve’s once-per-six-week meeting on Wednesday. An announcement on the interest rate and monetary policy is due at 2 pm EST. With the recent weakness in both US stocks and bonds, this is perhaps the most uncertain […]
Weekly Market Analysis
Stocks Fall – Which Safety Assets Thrive?
US stocks continue to be weak, with the S&P 500 large-cap stock index (SPX) falling 4.6% for the week. The market is now probing the recent lows set in late October. The SPX closed at 2633 for the week, whereas the intraday low of October 29 was 2603. Our assessment […]
Fed to Stop Hiking at Historic Lows?
Last week Federal Reserve chairman Jerome Powell spoke at the Economic Club in New York. The talk was one of the more anticipated speeches of the year by the Fed chief. Outside of the once-per-six-week normal Fed meetings. Powell spoke on a number of topics. However, the most significant aspect […]
What Does the Stock to Gold Ratio Tell?
The US stock market has been in the news recently. Having witnessed over a 10% correction since the all-time peak set on September 21. Meanwhile, gold has served as a source of stability, holding its value and rising by a modest 1% over the same timeframe. What lies ahead for […]
Precious Metals: Critical Support Test Ahead
The entire commodity sector is facing a critical support test over the next several weeks. We have made the case is past articles that commodities as a whole are bottoming, having hit 40+ year lows on both an absolute (US dollar terms) and relative (compared to stocks) basis during the […]