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This Is The Turning Point

The driving trends of the past decade are now reversing
Friday, April 6, 2018, 11:32 PM

The saying "the worm has turned" refers to the moment when the downtrodden have finally had enough, and turn on their powerful oppressors.

The worms have finally turned against the privileged elites -- who have benefited so greatly from globalization, corruption, central bank stimulus and the profiteering of state-enforced cartels. » Read more

Podcast

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Wolf Richter: The Era Of The Fed "Put" Is Over

It now wants lower asset prices (just not too fast)
Monday, April 2, 2018, 3:39 PM

To all those investors expecting the Fed to step in to backstop the recent weakness seen in the stock market, Wolf Richter warns: The cavalry isn't coming.

After years of force-feeding too much liquidity into world markets, the central banking cartel is now aware of the Franken-markets it has created. And now with a new head at the US Federal Reserve, and soon at the ECB, central bankers have shifted their priority from supporting asset prices to now actively engineering lower prices. » Read more

Podcast

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Danielle DiMartino Booth: Don't Count On The Powell Fed To Rescue The Markets

The new Fed Chair may break from his predecessors
Sunday, February 11, 2018, 4:29 PM

The recent gut-wrenching drop in asset prices began on the first day of the job for new Federal Reserve Chairman Jerome Powell.

How is Mr. Powell likely to react to a suddenly sick-looking market? Will he step in forcefully to reassure investors that there's a "Powell put" in place as a backstop?

To address these questions, former analyst at the Federal Reserve Bank of Dallas, Danielle DiMartino Booth, returns to the podcast this week. In her opinion, having studied Powell's previous statements, she thinks those expecting him to continue the market support his predecessors provided will likely be quite disappointed.

Powell appears to be no large fan of continued quantitative easing, and has long been on the record as concerned about the eventual pain its unwind will cause. He very well may resist riding to the market's rescue at this time, allowing natural market forces to finally have their way: » Read more

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The Cardinal Sin Of Investing: Permanent Impairment Of Capital

How to avoid making it
Friday, September 15, 2017, 8:47 PM

Permanent impairment of capital is the cardinal sin of investing.

Well, today's markets present a clear and present danger of coming capital impairment for those who don't take prudent action in advance of a market downturn. Don't be guilty of inaction.

 
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Signs Of Distress

The need to change is becoming more obvious than ever
Friday, August 11, 2017, 10:06 PM

The world is edging closer to the final moments after which everything will be forever changed.

Grand delusions, perpetuated over decades, will finally hit the limits of reality and collapse in on themselves.

We’re over-budget and have eaten deeply into the principal balances of all of our main trust accounts. We are ecologically overdrawn, financially insolvent, monetarily out past the Twilight Zone, consuming fossil fuels (as in literally eating them), and adding 80,000,000 net souls to the planet’s surface -- each year! -- without regard to the consequences.

Someday there will be hell to pay financially, economically, and ecologically as there simply isn’t any way to maintain these overdrafts forever. Reality does not renegotiate. Its deal terms aren't compromisable. » Read more

Podcast

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Richard Sylla: This Is An Inherently Dangerous Moment In History

Low interest rates are causing distortions & mis-allocations
Monday, August 7, 2017, 2:42 PM

"The rates we’ve had in recent years, including right now, are the lowest in history. The book that I co-authored on the history of interest rates traces back to the code of Hammurabi, Babylonian civilization, Greek and Roman civilization, the Middle Ages, the Renaissance, and early modern history right up to the present. And I can assure our listeners that the rates that they’re experiencing right now are the lowest in human history."

So says Richard Sylla, Professor Emeritus of Economics and the Former Henry Kaufman Professor of the History of Financial Institutions and Markets at New York University's Stern School of Business. He is also co-author of the book A History Of Interest Rates

We invited Professor Sylla onto the podcast after hearing his work favorably referenced by the panel convened at the recent hearing held by the US Congress titled: “The Federal Reserve’s Impact on Main Street, Retirees and Savings.”

Based on his deep study across the scope of millennia of human history, Sylla warns we are at a dangerous moment in time. » Read more

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It’s Bubble Time!

Wisdom & discipline will separate winners from victims
Thursday, February 23, 2017, 5:50 PM

It's impossible to predict with certainty how much more insane our financial markets will get before an inevitable correction, but my personal bet is “a lot!”

For my reasons why, take a few minutes to watch the chapter on bubbles below from The Crash Course. For those who haven't seen it before, the takeaway is this: bubbles pop only when greed in the market has been exhausted. » Read more

Podcast

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James Howard Kunstler: The World's Greatest Misallocation Of Resources

And why we appear poised to repeat it
Sunday, January 22, 2017, 2:11 PM

James Howard Kunstler returns to the podcast this week, observing that despite the baton being handed to a new American president, the massive predicaments we face as a society remain the same. And it seems the incoming administration is just as in denial of them as the old.

Kunstler adds fresh critique to his now decades-old warning that we are sleepwalking our way deep into the Long Emergency. The longer we delude ourselves and waste our energies in pursuit of reviving the failed "endless growth" model, the farther our journey back to a sustainable way of living will be when our current system collapses. » Read more

Insider

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Off The Cuff: Multiplying Market Oddities

Rising rates are creating cross-currents everywhere
Thursday, November 17, 2016, 8:15 PM

In this week's Off The Cuff podcast, Chris and Axel Merk discuss:

  • Impact Of A Trump Presidency On The Markets
    • What will the most likely trends be?
  • Plummeting Bond Prices
    • Good or bad?
  • The Unbearable Lightness Of Stocks
    • Rising prices in the face of rising interest rates
  • Gold's Prospects
    • Inflation? Higher rates? What will it mean for gold?

Axel and Chris address the increasing sell-off in the bond market, which can also be described as the sudden rising of interest rates. In an over-indebted financial system as ours, rising rates will make it more expensive to service the outstanding debt, placing increasing headwinds on economic growth. Right now, the stock market is ignoring that -- instead, it's pricing for perfection. Axel warns that this "oddity" will need to correct soon, one way or the other.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today. » Read more

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Hell To Pay

The final condition for a market crash is falling into place
Friday, September 23, 2016, 5:23 PM

Those familiar with my writing know I put the word “markets” in quotes because we no longer have a financial system where legitimate price discovery is a regular -- or even recognizable -- feature.

It's destined to fail. What more can be said about such a flawed system?

Well, a lot as it turns out. 

And failure to pay attention at this stage of economic and ecological history will prove to be exceptionally painful. » Read more