It’s almost certain a yuan reserve currency will become reality 11 months from now, triggering a foreign currency shift of as much as $2 trillion – an existential threat to the U.S. dollar’s status as the world’s primary reserve currency.
A lot of folks – especially individual investors – don’t like to bet on stocks that are going down. That’s understandable. It doesn’t feel as good to bet against something.
After the U.S. Federal Reserve left interest rates unchanged Wednesday, investors are asking, “Will there be a December rate hike?”
We have a Federal Reserve lack of transparency problem. In the Federal Open Market Committee’s (FOMC) latest policy statement, the institution said the U.S. economy is expanding at a “moderate pace,” as consumer spending and business capital investment have risen at “solid rates.”
Both U.S. and overseas stocks have been rallying since their ugly August sell-off. But, if these key commodity prices tank, expect stock prices to follow.
Investors are awaiting this week’s FOMC Meeting, yet the overwhelming consensus is that the Fed won’t raise interest rates.
The Valeant Pharmaceuticals Intl. Inc. (NYSE: VRX) stock price dropped another 9% to $106.03 Monday morning. The drop happened as “pharma’s Enron” tried to calm investors with an analyst conference that defended the firm’s business and dealings.
Markets have no memory. So once again they are rallying based on false hopes that central bankers will save them from themselves.
Despite a stealth bear market in many stocks, the major indices have recovered all of their 2015 losses in October.