Thursday, 19 October 2017

Gold with a third consecutive decline, as a result of the strong dollar

Gold fell for a third consecutive session on Wednesday, driven by strong dollar pressure and speculation who might be the next Fed leader. And the expectations are him to be far more aggressive in terms of interest than Janet Yelan.
Gold lost 0.3% to $1,280.86 per ounce with immediate delivery. Its lowest value for the day was at a level of $1,277.14, or a level unseen since October 9.
Gold futures, with delivery in December, lost 0.3 percent to $1,282.60 per ounce.
The rise in interest rates for the following year is not fully appreciated by the dollar, according to market observers. And this reflects very negatively on the price of gold.

Wednesday, 18 October 2017

The ActivTrades Financial Trading Summit 2017

I am thrilled to inform that my favorite forex broker ActivTrades will hold their ActivTrades Financial Trading Summit 2017!
It will be held on Saturday, 28 Oct 2017, in Shangri-La Dubai Hotel.
On this amazing event we will meet the best ActivTraders speakers:

- Dr. Andrew Lumsden Groom will speak on Applying Methods to Improve Trading Efficiency;
- Ms Ann Hunt will guide us thru the Psychological Trading;
- Ms Sara Waqar will clarify to us the main prospects in forex Risk Management;
- Nour Eldeen Muffeed KH. Alhammoury will present An in-depth look into Fundamental Analysis.

The program of this outstanding event also includes tea and coffee, lunch, panel discussion with lecturers and networking with industry professionals and other traders.

For more information and registration, visit here.

Tuesday, 17 October 2017

J. Dimon: If you are stupid enough to buy bitcoin, you will pay for it

Jamie Dimon can not just stay out of the bitcoin. Only one day after his bank announced its quarterly results, and Dimon had swaered never to comment on the bitcoin, he failed to fulfill his quest.
During a conference, Dimon said that if you're stupid enough to buy it, then one day you'll pay the price for it.
In September, Dimon called the bitcoin a scam. After the strong initial depreciation of more than 30%, the cryptocurrency recovered everything lost, reaching new historical records at levels above $5,800.
Despite the remarks made by Dimon, however, the bitcoin survived without significant change at levels of about $5,700.
Meanwhile, the Bitcoin Investment Trust (GBTC) lost about 2% of its value today, with its highest value for the past one year accounting for nearly 40% of the price.
In a special interview, Mark Wydman, a global strategist for iShares, said in an interview with Bloomberg that he does not see a particularly great sense in an index fund on a bitcoin, because we're talking about trading with assets that are difficult to access. If the bitcoin ever becomes successful, why do we need an index to access the bitcoin, the expert asked.

Dow broke 23,000 points for the first time in history

The Dow Jones blue chip index has overcome the 23,000-point psychological limit for the first time in its history, driven by over 5% growth in UnitedHealth's stock. The shares of the insurance company reached a historic record after having recorded better-than-expected results for the past quarter.
On the index, however, weighted the weak performance of the industrial companies.
We do not see a market that is fascinated by the results, according to other analysts who are talking about a potential correction for the indices after their record highs.
US Treasury bonds rose after higher-than-expected growth in import prices, which raised inflationary expectations and led to a rise in the US dollar.
Additional support for the dollar has made it clear that Donald Trump would most likely prefer John Taylor as the next Fed leader after Janet Yelan's term of office.
The fall of 1.2% in General Electric's shares led to a decline in the industrial index, while the fall in Microsoft's and Intel's shares put a heavy burden on its technology components.
Seven of the 11 major sectors in the broad US index recorded declines driven by the industrial one.
Netflix shares lost 1.2% of their value after they recorded a new historic record the previous day.

Monday, 16 October 2017

J. Gundlach: The dollar will fall in the long run

DoubleLine Capital CEO - Jeffrey Gundlach, talks about the situation in the most popular currency pair - EUR / USD in an interview with CNBC Financial.
First, we should note that at the beginning of the year all experts were extremely optimistic about the dollar. In fact, long dollar positions were among the most crowded deals in the market, Gundlach commented.
The dramatic depreciation of the dollar against the euro followed. We have to look at the factors that predetermined this. And that was mainly the expectations of investors for the Fed's policy.
Fed's comments on three interest rate rises in the market next year are not "bought from the market" for bonds, Gundlach commented. In fact, only 50% of market participants expect an increase in interest rates next year. And as I have not once seen, in my long-standing practice, the market has been much more predictive in history than the Fed.
Moreover, as far as possible, I expect the Fed to change its tone over time and in case of bad data, as well as its expectations for the number of interest rises in the next year. It is these expectations that make the dollar cheaper than other major currencies.
Otherwise, with regard to the recent appreciation of the dollar, it is not surprising. Indeed, in August, we witnessed its biggest daily decline in 20 years. And this, logically, puts it in a situation of "oversold", which many counter-investors have taken advantage of.
Otherwise, in general, I expect, despite the momentum of the dollar, that its depreciation in the longer term will continue, Gundlach predicted.

Saturday, 14 October 2017

J. Bogle: The market is fully appreciated

When the index fund father - Jack Bogle, talks, everyone listens. And Bogle has a lot to say to investors. In his last interview, he said that the market is fully appreciated.
Although two of the three major US indices fell last week, they all reached new record highs this month. And that makes Bogle, the founder of the Vanguard Group, to believe that the market is fairly valued at the moment.
According to his standarts, the financial ratings of companies are quite high, said Bogle in an interview with TheStreet. He added that his standards are high.
This year, the Dow Jones Industrial Average blue chip index passed 20,000 points and is currently trading close to 23,000 points. Technological Nasdaq rose by 22.42% since the beginning of the year, while the broad S&P 500 grew over eight consecutive days, registering its longest winning series since 2013.
It is good for investors to realize that the market is fully appreciated, and if they feel nervous about its condition, it may be better to close a portion of its portfolio, thinks Bogle.

Thursday, 12 October 2017

P. Harker: Another rate hike this year and three in the next

Fed Philadelphia head Patrick Harker said last week he expects another increase in interest from the reserve and three next year.
This program, however, will largely depend on the performance of inflation, Harker said.
He still signed up for three interest rates next year, but again we need to see how market dynamics is developing, Harker said in an interview with CNBC.
Apparently the comments of the official representatives of the reserve are not convincing enough, as yet a little over half of the market participants expect a third increase in interest rates this year.
We can not fail to note the still low performance of inflation in the world's leading economy. It is at levels below the target of 2%, puzzling seriously the members of the Monetary Policy Committee.
And although Fed officials, in the face of Janet Yelan and Stanley Fischer, have said in the past two weeks that they expect inflation to accelerate over the coming months as a result of low unemployment, inflation has fallen since the beginning year.