For Clients & Friends
Dear clients and friends, The long overdue market correction has finally arrived. And due to automated trading, volatility is extreme. Furthermore, it is likely that the volatility will last for a while. Here are the economic issues the market is fretting over: Weakness in China – their currency devaluation is a clear sign that Chinese […]
The U.S. is Losing the Currency War
Over the past year, the U.S. dollar has appreciated more than 18%, and in the week of August 10th, China surprised the markets by allowing its currency to depreciate nearly 3% against the dollar, thoroughly roiling the equity markets. The Peoples Bank of China (PBOC) had typically pegged the value of the Chinese currency (RMB) […]
With GDP at 2.3 percent and gold prices low, should you buy?
The data on the economy has been mixed of late, and the price of gold has tanked again. In what follows, I try to analyze these trends. The U.S. Economy U.S. GDP growth of 2.3 percent in the second quarter appears, at first glance, disappointing. But given the very significant headwinds in the manufacturing sector […]