Long-term trends grow from short term trends. We attampt to determine the short term trends and where they are pointing.
Today Chris Ciovacco looks at both the bullish and bearish cases in an objective manner and tries to come to some insights. He looks at the psychology and expectations going into 2022-23. The high volatility, failed signals and market’s feedback mechanism, policy impact, FED impact, reasons to believe the worst may be over.
The Bullish and Bearish Cases in the Market Read More »
Today Chris Ciovacco of Ciovacco Capital Management looks at the market situation in light of the bank failures. First up is the Inverted Yield Curve. We can see that it originally inverted in July of last year, when short-term interest rates moved higher than long-term rates. From there it moved steadily lower before rebounding earlier this month. So although it is still inverted it is not anywhere near as bad as it was just a few weeks ago.
Stock Market Outlook – March 24, 2023 Read More »
Back in 1933, Roosevelt forced Americans to sell their gold to the government for $20.67 an ounce and then promptly raised the price to $35/oz. Thus he presided over a 69.33% gain in the value of gold which was equivalent to a 69% tax on the ownership of gold. Then at the tail end of WWII, Roosevelt pulled off the Bretton Woods agreement that made the U.S. the dominant world currency. When that began to fail Nixon cut a deal with Saudi Arabia instituting the “Petrodollar” which once again put the dollar at the top of the heap. But now some cracks are once again emerging.
More Cracks in U.S. Dollar Dominance Read More »
It has been a long time since there has been any positive news for the stock market. In our January 12th, 2023, NYSE ROC report, we changed from a “Sell Signal” to a “Hold Signal” because of some positive indications in the market. Although the ROC has not yet switched to a “Buy”, we noticed a few positive indicators that could indicate either a bottom has been set or that we are in for a short-term rally. Some may call this “green shoots” in the market.
Has the Stock Market Turned Positive? Read More »
The U.S. has been the currency of foreign exchange ever since the Bretton Woods agreement of 1944. It did experience a crisis of confidence in the 1970s, but the Nixon / Kissinger deal with Saudi Arabia to create the PetroDollar whereby all oil sales had to be completed in U.S. Dollars (in exchange for military support) recemented the dollar’s prominence for another half-century. But now things are changing. In today’s article, Patrick Barron looks at the current state of Dollar hegemony.
Is the U.S. Dollar Hegemony Ending? Read More »
There’s a new Recession Alarm! Money Supply Growth can have a significant influence on the state of the economy. When the FED is pumping, and the money supply is growing, Woo Hoo, it’s happy days, but when the flow dries up, the economy goes into a tailspin. As we have repeatedly implied, via the FED’s massive Quantitative Easing, the money supply has grown exponentially over the last decade.
But today, let’s look at the M3 money supply itself. The M3 money supply is a broad measure of money, including M2 plus much more. It is an indirectly derived measure of the supply of money which includes currency in circulation, checking and savings deposits, certificates of deposit, term deposits, call/term borrowings from ‘non-depository’ corporations by the banking system, and ‘Other’ deposits with the central bank.
Latest Recession Alarm Read More »
On the NYSE weekly chart. we can see that this year so far, the index has fallen from the peak at the long-term resistance line down to the mid-line (as we said it would). So as the headline suggests, we are now halfway to the worst-case scenario, i.e., all the way down to the long-term support line. Whether it gets that bad or not remains to be seen.
Half-Way to the Stock Market’s Worst Case Scenario Read More »
There is an old stock market saying that says, “don’t fight the FED” and that turns out to be pretty good advice. The FED can access trillions of dollars to influence the market direction.
Don’t Fight the FED Read More »
Over the years, we’ve discussed various iterations of the “blockchain” and some of the possibilities it has for finance, industry, and even gaming. We looked at What are NFTs and Why are They Going Crazy?, How Blockchain’s Unique Innovations Can Prevent Money Remittance Scams, How Is Technology Affecting Global Trading Markets, and Metaverse vs. Multiverse- What are They? And Where are They Leading? Over at InflationData, we covered Cryptocurrencies and Inflation, and Can Crypto Solve Venezuela’s Hyperinflation Problem?, which we followed up with How has Venezuela’s Bitcoin experiment Fared? So we’ve looked at Crypto quite a bit. Today we are going to take another look at NFTs, which looked a lot like a crazy bubble right from the start.
Non-Fungible Tokens (NFTs): Another Financial “Fumble” Read More »
For years we’ve been tracking college costs and adjusting them for inflation. See Education and Tuition Inflation for more information. During that time, I’ve repeatedly said that one of the primary drivers of increased education costs was the ease of getting a loan. Unfortunately, the vast majority of college freshmen see a loan as “free money” and don’t seem to understand the difference between a “Loan” and a “Grant”. And apparently, this past week, many college loans effectively became grants.
Looking at it from a different perspective, we might wonder what lessons former college students will learn from this largess. Will they determine that debt is good? Or perhaps, they will surmise that no matter how stupid their decisions are, the government will always bail them out. Today’s article comes from the halls of Academia but doesn’t praise the government’s philanthropy as you might expect. ~Tim McMahon, editor
Biden’s College Loan Forgiveness Program Will Raise College Costs
When I interviewed for a teaching job at private college in Alabama more than twenty years ago, the recently elected governor had won partly on a platform in which the state would install a lottery system that would give students a $3,000 grant for college. As the provost and I discussed the prospects of this new program, he smiled and said, “We hope this lottery passes. Then we can raise tuition by $3,000.”
Will Loan Forgiveness Raise College Costs? Read More »
