Are The Markets Teetering At The Edge Of A Cliff?

Well, it certainly seems as though the equity markets cannot make up their minds which way they want to go. The question on every investor's mind is, is this going to be a major top in the market like 2007?

I remember reading an article years ago titled "They do ring a bell at the top of the market." It was an intriguing title and, of course, that's the reason I read the article. In essence, it boiled down to this, when the Federal Reserve starts raising interest rates, it can be a major negative for the market.

What will happen when interest rates start to move up again, as they invariably will? Are we going to see a move out of stocks and into safe yield bearing instruments again? Continue reading "Are The Markets Teetering At The Edge Of A Cliff?"

Are You Prepared For Negative Interest Rates?

By:Tim Begany of Street Authority

Last Tuesday, all eyes were on Federal Reserve Chief Janet Yellen. In prepared testimony, she offered a few hints that interest rate increases may begin this summer.

While the crowd is thinking about rate hikes, few are thinking about U.S. interest rates heading lower, or possibly even turning negative.

The idea may seem absurd, but is it? Continue reading "Are You Prepared For Negative Interest Rates?"

Fed on the Brink of Dovishness?

Lior Alkalay - INO.com Contributor - Forex


After fending off one blow from the SNB and another, albeit positive, surprise from the ECB, investors’ focus will, naturally, shift to next week when the Federal Reserve’s rate decision will take place. “What will Yellen say this time?” markets want to know. Can the Fed Chairman really stay hawkish while the rest of the world is plunging into a new cycle of easing? These questions have loomed over Fed meetings for a while now, especially as Oil prices plummeted and inflation expectations lowered. Yet to the surprise of many Fed watchers and investors, Janet Yellen, “the dove,” continued to press forward with a hawkish tone, giving an upbeat assessment on growth and stressing the Fed’s conviction that disinflation (low Continue reading "Fed on the Brink of Dovishness?"

Don't Get Ruined by These 10 Popular Investment Myths (Part IX)

Interest rates, oil prices, earnings, GDP, wars, peace, terrorism, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that after the 2008-2009 crash, many called into question traditional economic models. Why did they fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

This series gives you a well-researched answer. Here is Part IX; come back soon for Part X.

Myth #9: Inflation makes gold and silver go up.

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

This one seems like a no-brainer. The government or the central bank prints more bonds, notes and bills, and prices for things go up in response. Gold is real money, so it must fluctuate along with the inflation rate.

Once again, it doesn't happen that way. Let's examine the history of inflation and the precious metals since the low of the Great Depression.

Inflation occurred relentlessly from 1933 to 1970, yet gold and silver remained unchanged over the entire time. True, the government fixed the price. But markets are more powerful than any government, and if the market had wanted precious metals prices higher, it would have made them go higher. Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part IX)"

Don't Get Ruined by These 10 Popular Investment Myths (Part II)

Interest rates, oil prices, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By: Elliott Wave International

You may remember that during the 2008-2009 financial crisis, many called into question traditional economic models. Why did the traditional financial models fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

That's a crucial question to your financial well-being. This series gives you a well-researched answer.

Here is Part II; come back soon for Part III. Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part II)"