The European banking crisis is still brewing. The biggest problem rises from the rules that if a bank is in trouble, they just seize the bank and sell it for €1 and all the shareholders lose everything. This is having serious impact upon the European Banking System as a whole as I previously warned. The Italian […]

Generally a very quiet day in the markets, no real game changing events shocked the major markets today. German industrial production was announced with 2.6% MOM gain as opposed to a 0.7% forecast. ECB’s Lautenschlaeger did have a speech and hinted at scaling back asset repurchasing next year with the view to scrap the program […]

This current Bull Market has indeed been the most hated in history. Typically one expects complete euphoria as new highs are made. However, this bull market is really different this time. This rally is by no means the product of euphoria. While the majority of analysts have been calling for a crash since 2010 and […]

The end of a holiday week for markets in Asia. We have to wait until Monday to see mainland China, South Korea and Hong Kong’s reaction to the US NFP’s release and also the reaction to the turn of the US Dollar Index. Markets that were opened were seeing futures initial response trading firmer as […]

QUESTION: Do you really think Trump would let the Central Banks Default? He said we would write off PoteRicos debt maybe he plans to write everything off can he do that? If this really did happen wouldn’t the dollar be worthless? S ANSWER: It seems as though far too many people ASSUME that all central […]

The press release put out by the EU is just amazing. A dictator can write any law he desires declaring something to be illegal. The EU relies upon that unethical law to claim that Catalonia has no right to vote. Canada allowed Quebec to vote twice and Britain allowed Scotland to vote. Why is Catalonia […]

Central banks do not play games with the markets but it sure feels like we are being played by someone! Earlier this year the Bank of Japan, Federal Reserve and the European Central Bank all had similar balance sheets at around $4.5 trillion.  As we know, over the past ten years all three have risen from lower levels but have […]

QUESTION: Hi Martin, I recently asked an Economist for a major Financial Institute the following question. Will the Fed continue to pay interest on “excess reserves” after they start to reduce their balance sheet? Their answer was yes, as it is a way to control short-term rates for private sector borrowers. I am not able […]

QUESTION: I read a credible theory recently about China taking over US as the top superpower via economic pressures. Namely by replacing the US dollar with the Yuan as the standard currency for international trade. This shift is (supposedly) being enacted through 1) increased control over Developing countries through international lending from the New Development […]

  QUESTION: Mr. Armstrong; Do you believe in portfolio diversification? ANSWER: No not really. I see no point in putting money in something you know will be a loss. Diversification within a sector is one thing. But buying government bonds when rates are at a 5,000 year low and governments are in trouble around the […]