In the current policy and media stoked market environment, anything is possible. It's the wonderful, magical world of hands-on policy making. 5 years after the financial crisis, but still not enjoying a ramping economy like the good old (and long gone) days of the last great secular bull market (RIP 2000)? Just sit back, relax and let the man in charge control the image.
"For the next hour, sit quietly and we will control all that you see and hear. We repeat: there is nothing wrong with your television set. You are about to participate in a great adventure. You are about to experience the awe and mystery which reaches from the inner mind to – The Outer Limits." Continue reading "The Fed's Great Adventure in Inflation"
In light of today's positive economic data out of China, I thought I would reproduce a segment from NFTRH 255 (9.8.13) that speculated upon the possibility of a new up cycle in inflation expectations based in large part on China and its credit growth cycle (on which central planners have announced a planned clampdown).
China industrial, retail data beat forecasts
The Greenspan Fed provides a handy reference as to how long it can take for a withdrawal of policy to manifest in a new economic deceleration. Continue reading "China, U.S. & Inflation"
Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.
Weekly Gold Report (August 19th through August 23rd)
Market bulls were dealt a blow last week as stock traders began booking profit on long positions in expectation of a FED taper in their bond purchase program. The selling pushed the stock indexes lower throughout the week until the Dow suffered its largest weekly drop in over a year. Similarly, the US Bond Markets fell under pressure as traders continued to try to anticipate the FED’s next decision regarding Quantitative Easing and Interest Rates. Continue reading "Gold Chart of The Week"