Tag Archives: newsletter

The US dollar has begun the week with a strong advance against sterling and the euro. Sterling's drop, the most in several years, is not a function of macroeconomic policy.  It is a function of Brexit and its endorsement by London Mayor Johnson.  Recent polls and identified Johnson, who term as Mayor ends in early May, as the second most influential person on the issue after the Prime Minister himself.  Sterling fell to about $1.4050 by early North American trading and has subsequently...

The US dollar has begun the week with a strong advance against sterling and the euro. Sterling's drop, the most in several years, is not a function of macroeconomic policy.  It is a function of Brexit and its endorsement by London Mayor Johnson.  Recent polls and identified Johnson, who term as Mayor ends in early May, as the second most influential person on the issue after the Prime Minister himself.  Sterling fell to about $1.4050 by early North American trading and has subsequently...

There are times you try to connect the dots. There are others where those connections warrant adorning your trusted tin-foiled cap of choice; for you just can’t get there unless you do. This I believe is one of those times. And if correct? What at first might appear apocryphal, may in fact, be down right apocalyptic. And besides, what good is a tin-foil capped conspiracy theory anyhow if it doesn’t have the potential for doom, correct? So, with that in mind, let’s venture down some roads...

Global equities are beginning the last week of February on a firm note.  The MSCI Asia Pacific Index rose 0.75%, with China's markets gaining more than 2%, leading the way. European shares have followed suit.  The Dow Jones Stoxx 600 is up 1.7% near midday in London, led by materials and telecom.  Like the MSCI Asia-Pacific Index, the Dow Jones Stoxx 600 is flirting with last week's highs.    Oil is trading nearly $1 a barrel higher, even though many are skeptical that the Russia and...

Global equities are beginning the last week of February on a firm note.  The MSCI Asia Pacific Index rose 0.75%, with China's markets gaining more than 2%, leading the way. European shares have followed suit.  The Dow Jones Stoxx 600 is up 1.7% near midday in London, led by materials and telecom.  Like the MSCI Asia-Pacific Index, the Dow Jones Stoxx 600 is flirting with last week's highs.    Oil is trading nearly $1 a barrel higher, even though many are skeptical that the Russia and...

The big news is that the gold-silver ratio closed at 80. This is not only a new high for the move. It’s higher than it has been since 2008. It’s also exactly what Monetary Metals has been calling for. Last week, we said the gold fundamental was $1,450 and the silver fundamental was $14.90 (i.e. a fundamental value for the ratio over 97 last week). This week, the ratio moved up, and it’s now 1.3 points closer. In other words, silver got cheaper when measured in gold terms. [caption...

The big news is that the gold-silver ratio closed at 80. This is not only a new high for the move. It’s higher than it has been since 2008. It’s also exactly what Monetary Metals has been calling for. Last week, we said the gold fundamental was $1,450 and the silver fundamental was $14.90 (i.e. a fundamental value for the ratio over 97 last week). This week, the ratio moved up, and it’s now 1.3 points closer. In other words, silver got cheaper when measured in gold terms. [caption...

We think that it’s still too early to say whether Friday’s price action was simply profit-taking ahead of the weekend, or the resumption of overall negative market sentiment.  We think the global backdrop remains conducive for risk, at least near-term.  China concerns are on the back burner, while markets are still skeptical about the prospects for Fed tightening.  Commodity prices are the potential spoilers to a resume risk rally, as oil ended last week on a sour note. Country-specific...

We think that it’s still too early to say whether Friday’s price action was simply profit-taking ahead of the weekend, or the resumption of overall negative market sentiment.  We think the global backdrop remains conducive for risk, at least near-term.  China concerns are on the back burner, while markets are still skeptical about the prospects for Fed tightening.  Commodity prices are the potential spoilers to a resume risk rally, as oil ended last week on a sour note. Country-specific...

The main driver of the investment climate is not so much the incremental economic data as the capital markets themselves. The market turmoil contributed to the tightening of financial conditions, which in turn heightened risks, which monetary officials are committed to resisting.    Financial markets stabilized last week, but the tone remains fragile.  The damage to the technical condition and sentiment requires further consolidation to rebuild investor confidence.  The price action...