Category: INO.com Contributors

Massive Amounts Of Money Are Leaving The US For Europe

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


SPDR S&P 500 ETF (SPY) is one of, if not the largest ETF's based on net asset value, which currently sits at $177 billion. That should though come as no surprise since the ETF mimics the S&P 500 and is quite frankly the easiest way for investors to diversify their portfolio in stocks, while taking on no more risk than necessary. I often recommended this to others and refer to it as the best one stop shop for investors, regardless of their goals.

But recently, we have been seeing large amounts of money moving out of SPY. January 20th nearly $4 billion was pulled out, during two days, January 28th and 29th, more than $5 billion was removed, $2.4 billion on February 20th, another $2.3 billion on March 20th, another $9 billion from March 26th to the 30th, April 20th another $4 billion, from April 28th to May 1st $8 billion, and May 19th $3.3 billion was pulled out. Continue reading "Massive Amounts Of Money Are Leaving The US For Europe" →

Buy Gold For Euros, Sell Copper For Dollars

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Gold/EUR Is A Buy

XAUUSD/EURUSD
Chart courtesy of Tradingview.com

In my January post, I gave the recommendation to buy Gold versus the EUR at 1022 EUR, with a target for inverse Head and Shoulders pattern at 1208 EUR. As seen in the above monthly Gold/EUR chart, the target hasn't been reached so far, but the maximum advance of 138 EUR (14% between 1160 and 1022 EUR) was significant. Today I will update you on that idea with a new pattern that I found on the chart.

For 10 years, the Gold/EUR has been in a long-running uptrend (highlighted in green). The price had been elevating all the way up from 2005 charting clear zigzags and peaked only in 2012 at 1384 EUR level. Then we saw almost a 40% sharp fall from 1384 down to 856 EUR minimum. At the end of 2013, Gold touched the downside of the trend and one month later, at the start of 2014, the market rebounded from the support and found resistance at the magic 1000 EUR level where the price bounced off into a sideways consolidation between 900 and 1000 EUR. Continue reading "Buy Gold For Euros, Sell Copper For Dollars" →

The Case Of The Vanishing Money And Attempted Murder Of U.S. Coal

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


Don’t look now! It’s a frightening scenario for investors with a stake in US coal.

Even as we speak, money is disintegrating. No one seems safe. It’s like a mass murderer is on the loose. Investors in both stocks and bonds of US coal companies are suffering profusely. Someone please! Stop the bleeding!

On Tuesday, Bloomberg reported this horrifying reality: “Two months after Peabody Energy Corp. raised $1 billion from the junk-bond market, buyers have lost 18 percent in market value as a slump in coal prices worsened.”

Bonds! People who bought Peabody’s 10% bonds have lost 18%! Continue reading "The Case Of The Vanishing Money And Attempted Murder Of U.S. Coal" →

The Waiting Is The Hardest Part

Posted on by George Yacik

George Yacik - INO.com Contributor - Fed & Interest Rates


Surprise, surprise. The Fed isn't going to raise rates in June after all.

While the just-released minutes of the Fed's April 28-29 monetary policy meeting revealed the central bank "did not rule" out the possibility of raising rates at its June 16-17 meeting, "many participants thought it unlikely that the data available would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied."

In other words, economic reports over the past several months haven't come close to giving the Fed comfort to start normalizing monetary policy – i.e., raising rates – without jeopardizing growth, or what little there has been recently.

In the first quarter, U.S. GDP rose only 0.2%, down from the 2.2% growth rate in the fourth quarter of 2014. But economists are now expecting that figure to be revised downward next Friday, possibly to show negative growth. Continue reading "The Waiting Is The Hardest Part" →

Aussie Dollar: A Matter of Timing?

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


About two weeks ago I shifted the reader's attention to the upcoming rotation back into commodities and the commodities FX play, i.e. the Norwegian Krone and the Aussie Dollar. While I had initially predicted back in May the 2nd, the Norwegian Krone has instead rallied on the back of appetite for Oil and the general lackluster appeal of the dollar. But that was and is still not the case for the Aussie Dollar. It seems that investors in the Aussie dollar are waiting for some cue, some development that has yet to materialize. What is this development and what would be its likely impact?

Aussie Reality Check

Despite the Australian economy being in relatively fair shape and with inflation levels still higher than its western peers, the Reserve Bank of Australia has keep the easing pedal pushed and slashed interest rates. And the basis for the RBA's policy decision? Of course, still tepid data from China and an uptick in Australia's inflation, which together lowered the core inflation in the country to 2.27%. The continued rise in housing prices, especially in the Sydney area, was largely ignored and essentially shrugged off by an RBA undeterred from turning off its accommodative policy. Continue reading "Aussie Dollar: A Matter of Timing?" →