ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Originally posted on “Inflation Watch“… Nightly Business Report produced a short video segment describing China’s inflation woes (transcript included) called “China’s Inflation Battle.” The commentator identifies China’s RMB¥ 4 trillion stimulus program (around $585B USD at the time) as the original source of the inflation and takes us to Pengshui, 1000 miles from Beijing, to … 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
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
Dangerous Views of Volatility: Pay attention to the VIX, but don't just follow the crowd – Barrons.com The market remains schizophrenic. One day, stock prices tumble because Standard & Poor's questions the credit rating of the United States, and investors panic and sell and fret, and the front pages of many newspapers are apocalyptic. The … Read more
(The following news release is satire and reflects my own cynical interpretation of recent news events. But as they say, there is always some truth in humor.) On Thursday, Attorney General Eric Holder introduced the country to the Oil and Gas Price Fraud Working Group to “…focus specifically on fraud in the energy markets” by … Read more