The year 2015 was 13 years up from the 2002 low in the stock market following the DOT.COM bubble. That low was rather significant for many markets have yet to exceed that 2000 nominal high, such as in France. This has warned, as was the case in gold from 2011, that a correction became possible. […]

The euro is still in a position to rally. The general view right now is that the Fed will not raise rates. With the stock market heading lower, this prevailing view of the Fed with respect to rates should dominate and provide a bid for the euro just yet.

Merkel has called upon NATO to block the influx of refugees. She has announced cooperation of German police with Turkish police to stop the migration to Europe. This comes only after the bitter experience of losing track of the majority of refugees, which is threatening the freedom of movement within Europe that many see as the end […]

With most of the Asian markets closed, many were expecting a steady, easy opening Monday to start the week. The Nikkei cash managed a close above the much talked 17k level (+1.1%) and even saw the ASX clamber into an unchanged close. However, just 90 minutes into the European session dealers remarked that Bank stocks […]

The talk of the town is that gold can see more upside if rates decline. That seems to be at odds with the view that gold is a hedge against inflation since lower rates reflect more deflation. The confusion seems to really be in the relationships. Gold is rising simply because the stock market has declined. […]

The Dow is playing catch-up to the S&P 500, which broke last year’s low. The lagging Dow still reflects the difference between big international money and domestic. Nonetheless, our opening pivot number for this week was 16153. Opening beneath that number warns we may close lower for this week moving into next week where we […]

The two main areas to avoid are (1) ANY investment in government bonds (federal, state, local), and (2) bank stocks. These will be the two areas of major concern as we move forward in time. You can keep cash in U.S. TBills for right now, but as we move into 2017 you are better off […]

Trump and Sanders have a lot more in common than people suspect. What is Bernie saying at the core? He needs a revolution to get most of what he is talking about passed. While he is misguided with attacking the “rich” whom the tax code defines as anyone earning $250,000 in “household” income (i.e. not […]

The new budget proposal reveals that the U.S. military plans to quadruple its resources to confront “Russian aggression” and to strengthen its presence in Eastern Europe. “We’re reinforcing our posture in Europe to support our NATO allies in the face of Russia’s aggression,” commented Defense Secretary Ashton Carter.