It Feels Like Inflation

By: Gary Tanashian of Biiwii.com

Last night’s post on the US stock market ended as follows:

“As far as the Fed and its puny rate hikes are concerned, that is irrelevant.  This market is flipping them the bird.  Markets can rise a long way before a rate hike regime finally kills them.  It feels like inflation folks.”

This prompted a question from an NFTRH subscriber about what markets would benefit, and in what differing ways would they benefit if an inflationary phase comes to dominate?  That is a far reaching question and a difficult one as well, because inflation’s effects have a way of being unpredictable (how many would have answered ‘US stock market’ in the spring of 2011 to the question “where will the post-crisis inflation to date manifest on this cycle”?).

Last weekend, in an NFTRH 396 excerpt we talked about Applied Materials stellar quarterly report and what it might mean for the economy, the Fed, the gold sector and most of all the idea of an inflationary backdrop becoming more readily apparent (2003-2007 Greenspan style). Continue reading "It Feels Like Inflation"

Pro-Inflation? Anti-USD?

By: Gary Tanashian of Biiwii.com

This is the opening segment from the May 15 edition of Notes From the Rabbit Hole, NFTRH 395.  I am releasing it for public viewing because it seems, the title’s question has come roaring to the forefront this week.  So the information (including the charts) is slightly dated, but becoming intensely relevant as of now.

We anticipated an ‘inflation trade’ or Anti-USD asset market bounce and this has been going on since mid-February. That was when silver wrestled leadership from the first mover, gold (which bottomed in December and turned up in January), and a whole host of other global asset markets began to rise persistently.

gold.spx.crb.silver.eem

So why again did the US stock market react negatively to good economic data on Friday? Continue reading "Pro-Inflation? Anti-USD?"

"Enter The Dragon" Starring … Gold

Aibek Burabayev - INO.com Contributor - Metals


Recognition

Last Monday, the International Monetary Fund (IMF) endorsed the inclusion of the yuan in the fund's Special Drawing Rights (SDR) basket effective on Oct. 1, 2016. The Chinese currency has now joined the elite global currency club and will be the fifth member alongside the US dollar, the euro, the sterling and the Japanese yen.

Beijing has long hoped that the renminbi (another name for Chinese currency) would enter the privileged short list of world currencies, and it finally succeeded last week. But, first and foremost they are celebrating a political victory.

Some experts doubted that the yuan could be judged as "freely usable," which is the main criteria for inclusion to the SDR, but the reality proves that the stronger one is right despite such obvious contradictions as tight currency control and shares sale ban. Continue reading ""Enter The Dragon" Starring … Gold"

5 Years of Double and Triple Digit Returns

“As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them. ”
John F. Kennedy (1917-1963)
35th US President

Those are words we live by every day here at MarketClub and our parent company, INO.com. Our goal and mission is to help and assist our members get the very most out of MarketClub and all of the services we offer.

With thousands of members around the world in over 100 countries, we take our mission very seriously. Our goal is to provide you with the tools that will help you achieve the kind of results you may have only dreamed of.

It is with that in mind that I invite you to watch this four minute video on the World Cup Portfolio.

Since late 2007, we have been religiously tracking a portfolio that we designed to take advantage of the ever changing world we live in. This portfolio contains six core elements, all of which have performed extremely well in both Republican and Democratic administrations.

Continue reading "5 Years of Double and Triple Digit Returns"

Why the Dam is Finally Breaking on the US Dollar

Maybe Iran wants a bomb. Maybe not.

But blocking it out of the SWIFT system, in other words cutting it off from using the US dollar for its oil trades (among other things) because we suspect it does, simply meant that countries that still want to trade with Iran and which are not beholden to our political whim, have found ways of doing business without a dollar in sight.

That was a reckless decision at best. It opens the door to alternatives... alternatives that Russia, China and India – all major dollar holders – may just like better. Continue reading "Why the Dam is Finally Breaking on the US Dollar"