Two weeks ago, I wrote about adding gold to your portfolio. This week it has surged to new all-time highs. Gold is not alone in its rally, it is likely to be joined by silver, too. Silver presents a compelling investment option in the present macroeconomic environment, a volatile and broadly overvalued equity market. This … Read more
Two weeks ago, I wrote about adding gold to your portfolio. This week it has surged to new all-time highs. Gold is not alone in its rally, it is likely to be joined by silver, too. Silver presents a compelling investment option in the present macroeconomic environment, a volatile and broadly overvalued equity market. This … Read more
Chetan Ahya, Chief Asia Economist, Morgan Stanley, says that “during 2003-2007, we had seen the investment to GDP ratio go up from the trough of around 28% to the peak of 39% by CY2007. In this cycle, something similar is happening. Investment to GDP is troughing at 29% in 2020 and 12 months ended March … Read more
Federal Reserve officials agreed at their last policy meeting they could take a cautious approach to raising U.S. interest rates moving forward, and would only need to move them higher “if” incoming information showed insufficient progress in lowering inflation. “All participants agreed that the (Federal Open Market) Committee was in a position to proceed carefully,” … Read more
The metal benefitted from the peak rate narrative being pushed by the markets as inflation readings in the US, Australia, New Zealand, and the UK came in short of forecast, which has given rise to a possibility of key central banks soon hitting a pause button in their rate hike mission aimed at reining in … Read more
Spot gold closed with a gain of nearly 0.1% in the week ending January 27. With US Q4 advance GDP, durable goods orders, weekly jobless claims, pending home sales, and preliminary S&P global US manufacturing and services PMI data for January coming in better than forecast, chances of soft landing of the US economy have … Read more
Central bank watching is like an art form, fascinating in all its nuances, as also a science, a skill to develop. Central bank actions and communications are as much as what is said as what is left unsaid. It is both reading the lines as well as reading between the lines. Prior to 1994, the … Read more
The dollar languished on Friday after U.S. inflation data came in cooler than expected, raising market hopes that inflation may have peaked and that the Federal Reserve will begin scaling back its hefty interest rate increases. Figures showed that the consumer price index rose 7.7% year-on-year in October, the smallest gain since January and below … Read more
Last week was cruel for traders and investors who were hoping that financial markets would leave behind what has been a painful triple whammy this year caused by tightening financial conditions. After a strong bounce in both stocks and bonds early in the week offered some hope, the markets yanked it back, essentially erasing investors’ … Read more
Asian shares tumbled, the dollar held firm and the U.S. yield curve was deeply inverted on Wednesday, as a white-hot U.S. inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer. U.S. Labor Department data showed on Tuesday the headline Consumer … Read more