Global Markets

VIDEO Blog: Understanding The Risks Tied To Greece

With the Greek referendum coming up tomorrow, every day investors (and pros) have been trying to assess the risks. Here are a few key questions that they are asking (and attempting to answer): 1.  How concerned should we be? 2.  What is contagion and why should we care? 3.  How can we monitor risks in Europe over the next few weeks? Historic Vote And Negotiations With the referendum in Greece less

Outcome In Greece Clouds Stocks vs Bonds Debate

With the sudden rush of news hitting the markets, I thought it would be good to provide a quick market update, hitting on the most important points and how they affect key assets like stocks and bonds. For almost seven years now Central Banks have been pursuing a course of lowering interest rates and devaluing their currencies in an effort to spur growth. In my opinion, it hasn’t worked. And at

German DAX Rebounds: Index Testing Key Resistance Level

The German DAX correction started in early April and accelerated into June. Blame it on valuations, the rebound in the Euro, or Greece, but technicals play a role too. Like clockwork, German stocks found support at its .382 Fibonacci support level. And since then, the German DAX has been rallying. But the rebound rally is about to get tested. In the chart below, you can see three technical events that

Greek Financial Crisis: Why Traders Should Tread Lightly On Opinions

The situation in Greece has once again come to the forefront of our attention as the Greek government, the EU, and the IMF try to work out a package to kick the can a little further down the road. So far, this round of debt negotiations doesn’t appear to be going so well. The Guardian is providing live updates. To recap, the Greek financial crisis started in late 2009, burned

Chart Of The Week: Gold Prices Nearing Key Support Zone

Gold prices continue to meander sideways. In fact, Gold has moved sideways for the better part of two years. For much of last year, Gold bulls chalked up the sideways move to strong consolidation in the face of a rising US Dollar. But the dollar has weakened over the past several weeks… and so has Gold. And that’s not good news for Gold bulls. On Friday, Gold prices slipped back

ETF Trends Review: Markets Balancing Higher Interest Rates [VIDEO]

Another month is upon us so it’s a good time to check in on what’s been happening in the ETF space of the markets. In our June monthly ETF trends review video, I talk about some important ETFs to monitor within the context of current ongoing trends (and new trends) in the markets. Investors will want to stay on top of these themes as we head into the summer months. Some

Q1 US GDP Growth Turns Negative: A Ray Of Light For Bonds?

The initial ‘advanced’ US GDP growth estimate for the first quarter of 2015 estimated that the economy grew at 0.2%. The second revision based on more accurate numbers indicated that in the first quarter the US gross domestic product actually contracted instead of growing; the number showed no growth and a decline of 0.7%. That is a significant difference from the Wall Street economists that have been predicting annual US

Buckle Up: Bond Market Phase Transition Will Be Volatile

Have you ever noticed how the pace of water flow seems to increase as it approaches a waterfall? If you watch a leaf floating on the water you will notice that is starts to accelerate slowly when there is a drop ahead. And once it gets close to the drop it accelerates rapidly. Scientists refer to this as a phase transition and many forward thinkers are using this illustration for

Bonds Continue To Sell Off, But Risk-Reward Getting Better

I devoted last week’s market commentary to explaining the incredible volatility that has been occurring in bond yields. I explained that volatility associated with trading bonds has increased dramatically. The 10-year German Bund saw a 514% increase in yield in just 8 trading days! It moved 25% in one 32 minute period. German yields have declined since the day of that flash crash but remain elevated. The flash crash in Europe