The recent price action in precious metals this past week convinces me that a new bull run in gold and silver is underway. For those investors who have yet to add some exposure to precious metals, now would be a good time. (more…)

After opening the month with a five percent market melt-up, investors were expecting a follow through this week that would take the averages higher. There was even talk of a possible break through the ceiling of this trading range that has lasted almost six months. Instead we only managed a couple point gain over last week’s close on the S&P 500. (more…)

If you have been watching commodity prices over the last two months, you would think that the world’s consumers are in for another escalation in food prices last seen in the summer of 2008. Yet, short-term movements in agricultural prices do not necessarily translate into higher food bills in the long term. (more…)

This wasn’t supposed to happen. The week before Labor Day is notoriously slow with few, if any gains or losses for the week, but somebody forgot to tell that to the markets. It would appear from the upside action that we are once again going to run the S&P 500 Index back to the top of the range at 1,130. Whether we break that upside resistance remains to be seen. (more…)

There was a time when one of the rules of asset allocation was to always keep a little cash in your portfolio. Cash was the safest bet you could make. It became the place where we retreated when the markets were in free fall. Today, however, cash as an asset class, earns almost nothing. As a result, many individual investors are using that cash to trade currencies and in the process transform the world’s safest investment into something a lot more speculative. (more…)

The markets were so oversold by Friday that even a hint of positive news was enough to send stocks higher. The trigger was the revision downward of the nation’s gross domestic product to 1.6% for the second quarter. The initial GDP reading had been 2.4%. (more…)

The Japanese yen’s recent run-up against most other currencies has investors perplexed. After all, Japan’s interest rates are close to zero and have been at that level for a long time. The Nikkei, Japan’s stock market, has been leading world markets lower this year and is now officially in bear territory. What is so attractive about the yen that it now trades at a 15-year high? (more…)

I’ve got a lot of respect for the bond market. After all, it’s much bigger than the stock market with a lot more money riding on making the right call on the markets. It is truly the Big Dog while we in the equity markets are the tail. Recently, bond prices have shot up while interest rates have plummeted. What does that mean for the stock market? (more…)

Global markets are exhibiting a high degree of correlation, above 80% and that trend is expected to continue for several years into the future. As a result, the way most investors had invested in the past simply won’t work in the future. Here are the tools you will need to navigate the new normal in world markets. (more…)

Back in the Range

Bulls gave it their best shot last week but it wasn’t good enough. No matter how much they tried, they just couldn’t break that 1,130 level on the S&P 500 Index. And like jilted lovers, all the averages retreated in frustration. The question is how long will this range-bound market continue? (more…)