ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(Adapted from original article in Inflation Watch) In January of this year, Professor Russ Roberts of George Mason University invited fellow economics professor Don Boudreaux to address “Monetary Misunderstandings” on the weekly podcast “EconTalk.” From the synopsis: “Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts on some of the common misunderstandings … Read more
China’s sugar rush may be ending | James Saft China is an economy addicted to investment, a sort of fun house mirror of the U.S.’s addiction to consumption, with an astounding 93 percent of GDP growth in 2009 attributable to investment. That’s a strategy that worked well for years, but China’s response to the global … Read more
The Reserve Bank of Australia (RBA) released its minutes from its last board meeting, May 3. I reviewed these minutes curious to understand the bank’s expectations for commodity prices given the on-going sell-off in commodities. The meeting occurred just as commodities started their current sell-off, so these pressures were not salient at the time. However, … Read more
Just when the current stampede out of commodities seemed to shout out that demand is quickly disappearing from the face of the earth, Cabot Corp. (CBT) announces that growing demand has pushed it to restart mining for tantalum in Canada: “Rising global demand for tantalum has caused Cabot Corp. to announce its intention to resume … Read more
(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.) Silver failed at its 50-day moving average (DMA) resistance in spectacular fashion. Silver dropped 9% and gave up almost its entire gain from the previous three-day relief rally. Source: stockcharts.com As I mentioned in my previous … Read more
Why streaking silver now seems shaky – precious metals – Bill Fleckenstein Yes, silver could double over the next couple of years, but it is quite possible for it to drop 20% in a short stretch along the way and have that be nothing but noise. With silver, even more so than gold, it pays … Read more
What has changed in the two months it took for silver to stampede its way up $15 (a 43% gain) and back? Did the Federal Reserve raise rates? Did the Federal Reserve threaten the market with rate hikes? Did the housing market rebound sharply, generating an expectation for higher rates? Did inflation expectations adjust sharply? … Read more
Today, Pan American Silver Corporation (PAAS) issued a press release confirming my earlier assumption that its mining operations in Bolivia would not be impacted by the Bolivian government’s efforts to further nationalize its resource industries (see “Despair Deep in the Silver Mines: Another Opportunity to Buy Pan American Silver“). “On May 1, Bolivian President Evo … Read more
With the S&P 500 hitting fresh 3-year highs this week, the index is poised to recapture the previous uptrend that was interrupted by March’s double calamities of the Japan earthquake and hostilities in Libya. The stock market is overbought with T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), at a … Read more
Gold Luring Central-Bank Buyers May Extend Record Rally – Bloomberg Central banks that were net sellers of gold a decade ago are buying the precious metal to reduce their reliance on the dollar as a reserve currency, signaling demand that may extend a record rally in prices. (tags: gold monetary_policy central_banks) Adjusted For Inflation, Dollar … Read more