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Thursday, 22 October 12:40 (GMT -05:00)



Stock and commodities markets

Will USA Manage To Prevent Stock Market Crash?


The U.S. Federal Reserve has eased their rhetorics in order to avoid another stock market crash. International experts are now trying to predict the possible consequences of the decision made by the American financial regulator, especially form the stand point of international investors. 
 
It is interesting to note that the Fed revised the situation in the American economy in May to come to the conclusion that the national economy had recovered from the slowdown and started growing. The experts don't deny the possibility of another retracement period in the national stock market, which means they should take extra steps to back the market stability and avoid another market crash.
 
As you probably know, the Fed implemented 4 interest rate hikes last year. At this point, the regulator's representatives claim that they are not planning more interest rate hikes this year. Moreover, they even don't deny an interest rate cut in 2020.
 
Also, the regulator denied the idea of reinvesting a certain share of the money gained from the expired bonds. The balance contraction will end in October. This means that at least one means of monetary toughening will cease to exist.
 
Market participants are positive about the prospects. The derivatives segment is expected to end up with easing and interest rate cuts by the end of 2019, with a chances of over 50%. It's interesting to note that such expectations often anticipate the regulator's decision. Those expectations are often reflected in the fed funds rate - a futures index.
 
Fed's QE May Back Stronger Economy
 
The essence is simple. Amid interest rate cuts, favorable lending conditions are created. Thanks to the so-called multiplier effect, the economy may develop more actively. Over 50% of the Americans invest in stocks in a regular basis, including various retirement plans. Any stock market crash will definitely affect the consumer sentiment. That's why the regulator keeps watching not only the labor market and inflation, but also the financial conditions.
 
President Trump has been criticizing the Fed for relatively low interest rates. However, both the president and the regulator are pursuing the same goal - a stronger and more stable economy. Int's interesting to note, that S&P 500 gained over 17% during the first 5 months of the year, thus setting an new all-time high. However, the market is not going to grow exponentially even after the good news, especially as the trade war between the USA and China is still going on.
 
The bottom line is that given the current state of affairs, the summer is likely going to be rather volatile for the U.S. stock market since the Fed still has a lot of tools under their belt to back the risky assets. Even if the market situation worsens, the Fed may start a series of verbal interventions, followed by interest rate cuts. So, the current actions made by the Fed seem to favor the market, and the summer time may become another period of cheap money.

 

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European ETFs - Decent Alternative to American ETFs

The mentioned PRIIP rules are forcing the financial service providers and brokers to publish a specific set of info documents including the so-called KID with the key info on certain investment and insurance products. Since the funds coming from outside of Europe do not conform to these requirements, they cannot be offered to EU residents as investment products.
Publication date: 19 September 01:48 AM

Warren Buffett Keeps Loading Up On Bank of America's Stock

Berkshire Hathaway keeps loading up on Bank of America's stock. This time, during the period of July 31st - August 4th, they purchased over 13,6 million shares, which cost 337 million dollars. The average prices was 24,81 dollars per share. With that being said, Berkshire Hathaway now owns 1,03 billion shares of the stock, which is 26,15 billion dollars in dollar terms. As for the Federal Reserve, they agreed to increase the fund's share to 24,9%.

Publication date: 12 August 01:39 AM

WTI Price Drops After US Oil Inventories Report

Today, another crude oil inventories report has been released by the USA:

Publication date: 03 June 12:21 PM

Is Gold Worth Investing Amid Crisis?

Securing assets has always been number-one goal during crises. This is something that worries borth financial experts and plain folks who are far from the  peculiarities of the financial world but who are still witnessing their savings vanish amid inflation and devaluation.

Publication date: 14 April 02:09 AM

Remember the Key Rules of Investing in Stocks

Without further ado, let's consider a bunch of principles of investing in stock, which will put the odds of succeeding in this business in your favor:

Publication date: 11 March 01:14 AM

Apple Patents iPhone Without Ports And Holes, Device Expected In 2021

It seems that the release of the long-awaited iPhone without any ports or holes is getting more and more portable. Apple has always favored minimalistic designs, especially over the last 5 years. In 2015, almost all of the classic ports were deprecated in MacBooks in favor of a single one - USB-C Thunderbolt 3. In 2017, iPhone 7 got rid of the 3.5mm audio jack.

Publication date: 05 March 08:20 AM

Gold Sets New Records

The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.

Publication date: 14 January 01:23 AM

Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM

Oil Prices Have Made The Biggest Rally In History

Gold, yen, and oil currencies are getting more expensive. The strike came for an unexpected direction. Saudi Arabia's oil facilities were attacked, which increased geopolitical risks in the region and simultaneously undermined the global oil supplies. That was basically the reason why crude oil prices made the biggest rally in history but then moved back a bit and are still trading over 10% higher relative to the start of the trading session. 
 
Publication date: 16 September 03:26 AM