Gold Report Published
Moneyweek have published my latest gold report. You can find out more here
And, if you like, you can read my latest for Moneyweek
Archive for the 'Moneyweek' Category
How Much Further Can US Dollar Fall?
The fall in the US dollar over the past two months has been simply breathtaking.
The US Dollar Index measures the dollar against a basket of foreign currencies: the euro, the pound, the Canadian dollar, the Swiss franc, the Japanese yen and the Swedish kroner.
The index rose astonishingly quickly from 80 in April to 89 by early June, as panic over Greece overwhelmed the euro. But it has since turned tail and retraced all those gains as quickly as it made them.
In fact, the dollar had better turn up pretty soon or we’ll have a rout on our hands..
New Article; New Podcast
My latest for Moneyweek on summer opportunities in gold
And Larry Pesavento is back with a quick update on his call for an August rout in the stockmarkets in Frisby’s Bulls and Bears.
Latest Moneyweek Articles and Podcast
Here they are:
The Best Looking Currency Trade You Can Make Today
Commodities Are Only Half-Way Through Their Bullmarket
Will Economic Austerity Kill Gold’s Bull Market
And the latest Frisby’s Bulls and Bears with Larry Pesavento,
Death Crosses Everywhere …
“Watch out for the ‘death cross’” ran the title of Saturday’s Money Morning round up.
But what is a death cross? What does it indicate? And just how reliable is it?
These are pretty pertinent questions. We have death crosses forming across global markets – confirmed in Japan’s Nikkei and the Shanghai Composite; forming in the FTSE 100; in oil and in copper; and looking likely in the Dow, Nasdaq and S&P 500.
So let’s take a look at this commonly-used technical indicator in today’s Money Morning …
The Pound And The Tories
My latest for Moneyweek :
The pound seemed to like George Osborne’s emergency Budget. On Tuesday morning it was standing at $1.47. By mid-afternoon yesterday, it was above $1.49.
But the fact is, the pound has been rallying since mid-May, when news started to leak about the government’s austerity plans.
So is the bear market in the pound now over? Or is this yet another case of buy the rumour and sell the news?
Three reasons why gold may be due a correction
My latest for Moneyweek:
After moving above $1,260 an ounce on Friday afternoon, gold closed the week at $1,256. It’s a new record.
And it’s no surprise.
Governments and central banks have between them created an environment of negative real rates. For example, retail price index inflation in the UK is above 5%. Yet the Bank of England has kept the bank rate at 0.5%. By the time they’ve paid tax, savers need to find a bank that pays more than 7%, just to keep up.
The result is that savers are being mugged by policy-makers. Money in the bank is losing its purchasing power, as the people in charge attempt to devalue the currency. Watching your savings shrink by the day isn’t much fun. So people are being driven to find a more effective store of value.
Is it any wonder people are flocking to gold? Read on …
House Prices In Gold
As far as advocates of sound money are concerned, the UK housing market peaked in 2005. Since then it has fallen by more than 70%.
Yes, 70%. House prices are now at levels last seen in the early 1990s, at the bottom of the last bear market. The average house price is currently 25% below its average of the last 40 years.
“But, but, but,” I hear you say. “The housing market has barely fallen. The latest Nationwide and Halifax data has been showing year-on-year price rises. The crash never really came. This is insane. You’re talking rubbish.”
Am I?
Gold will soar in the long-term – but right now, traders should be careful
People keep asking me – what is gold going to do in all this market turmoil?
I reply, frustratingly – it could go either way. I know that’s the most annoying of answers, but, really, it could.
There are so many opposing forces at work. So I’d like to consider some of them today…