Daily Markets - Financial News & Opinions

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• Watch Out! Gold At Critical Support Level
• Doubtful US GDP Report Drags Stocks Down, Boosts US Dollar Higher
• Global Stock Markets: Performance Round-Up
• Banks Can No Longer Sing “What A Friend We Have In Washington”
• 2010 Will Be The Year Of Political Risk For Stock Markets
• New Assumptions For A New Era
• The Precarious State Of Our Union
• How To Cope With Risks In Latin America ETFs
• Despite Strong US GDP Growth, Energy Prices Sink Lower
• SEC’s New Money Market Fund Rules
• The State Of The Republic
• On The Origin Of Big Bank Failures

Watch Out! Gold At Critical Support Level Posted: 31 Jan 2010 05:45 AM PST Recent bearish price action on spot gold, a daily chart of which is shown, has descended all the way down to key support around the 1070 price region, forming a tentative double bottom matching the late December low. In the process, price has also reached down to an important uptrend support line that has defined the gold uptrend for at least well over a year. At the current critical support juncture, gold continues to display a marked bearish bias that threatens to change, or at least … [visit site to read more]

Doubtful US GDP Report Drags Stocks Down, Boosts US Dollar Higher Posted: 31 Jan 2010 03:09 AM PST DailyMarkets.com (New York) - The new year hasn’t been a positive one for the US stock markets. After Friday’s release of US GDP which came in at a much doubted 5.7%, stocks initially cheered but then sold off to close at a loss for the third straight week. The S&P 500 dropped another 1% and the Nasdaq fell 1.5%, bringing overall losses for the month of January to 3.7% in the S&P 500 and 5.4% in the Nasdaq. The advance fourth quarter GDP showed annualized quarter-over-quarter growth … [visit site to read more]

Global Stock Markets: Performance Round-Up Posted: 31 Jan 2010 03:01 AM PST A summary of the movements of major global stock markets for the past week and various other measurement periods is given in the table below. Click here or on the table below for a larger image. The nascent stock market correction gained momentum over the past week on the back of growing concerns about sovereign debt issues, the sustainability of the global economic recovery and Chinese policy tightening. The MSCI World Index and the MSCI Emerging Markets Index declined by 2.6% and … [visit site to read more]

Banks Can No Longer Sing “What A Friend We Have In Washington” Posted: 30 Jan 2010 09:01 PM PST These days, the financial industry’s locus of power can’t be found in London. It’s not in New York City. Frankfurt? Tokyo? Davos, Switzerland? Nope, nope, and nope. The real decisions that impact the capital markets are being made in Washington. And they’re sometimes being made by politicians who don’t really have a clue about how the industry works, or what unintended consequences their actions may have. If that doesn’t scare you, I don’t know what will. Look no further than last week’s … [visit site to read more]

2010 Will Be The Year Of Political Risk For Stock Markets Posted: 30 Jan 2010 08:01 PM PST The bracing headwinds of political risk now threaten to become a full-force gale. Any one of five “hot spots,” or an unholy combination of them all, could roil markets in 2010. Political Risk: The risk that an investment’s returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers, or military control. - Investopedia The best sound bite … [visit site to read more]

New Assumptions For A New Era Posted: 30 Jan 2010 07:06 PM PST The current downturn has helped to undermine many of the assumptions that people once had. It taught them that keeping up with the Joneses — especially if it depends on borrowed money — isn’t necessarily in their best interests. They learned that the financial institutions that loved them during the good times are quick to turn tale when circumstances change. They figured out that many of the so-called experts are anything but. Hopefully, they’re also realizing something else: those who’ve … [visit site to read more]

The Precarious State Of Our Union Posted: 30 Jan 2010 06:01 PM PST In this week’s much anticipated State of the Union address, President Obama again demonstrated his poor understanding of the fundamental problems that confront our nation.  By following the advice of the same people who helped guide our economy to the precipice of total collapse, Obama now threatens to push it over the edge. Notwithstanding his well crafted lip service regarding future spending restraint, the essence of his current program is for more government spending and larger … [visit site to read more]

How To Cope With Risks In Latin America ETFs Posted: 30 Jan 2010 04:01 PM PST Latin America was the star of the global investing show in 2009. Now some are raising the red flag that this region and its exchange traded funds (ETFs) could be overheated. If this is actually happening, there are ways to protect yourself and keep from getting burned. Although you could have earned a 93% return in the MSCI Latin America index, or 106% in Brazil last year, holding onto your gains could be tough in 2010, says Gail MarksJarvis for The Chicago Tribune. Some strategists are … [visit site to read more]

Despite Strong US GDP Growth, Energy Prices Sink Lower Posted: 30 Jan 2010 01:01 PM PST Crude oil futures slipped below $73 a barrel for West Texas Intermediate late Friday as a temporary boost from strong GDP figures failed to last and let prices sink to a one-month low. Earlier in the week, China, weak refinery demand and slumping tech stocks all conspired to keep energy prices low, with prices oscillating around $73 a barrel. U.S. gross domestic product grew at a seasonally adjusted 5.7% annual rate in the fourth quarter, the Commerce Department reported on Friday, … [visit site to read more]

SEC’s New Money Market Fund Rules Posted: 30 Jan 2010 11:01 AM PST Sense on Cents once again thanks our friends at 12th Street Capital for providing tremendously useful information and analysis. What do we learn today? The new rules adopted by the SEC for money market funds. The overview of these rules is provided by Orrick, Herrington and Sutcliffe LLP.  The driving force behind the new SEC rules is an effort to promote greater disclosure and liquidity within money market portfolios. After the crisis of 2008-whenever (it’s not over yet), money market … [visit site to read more]

The State Of The Republic Posted: 30 Jan 2010 09:00 AM PST Dr. Ron Paul (R-TX) delivers a speech in the clip below entitled, "Is That All There is to a Recession?" He provides ample evidence and explanation as to why, "the correction is just barely started and has a long way to run." The insight is definitely worth passing on. See the video … [visit site to read more]

On The Origin Of Big Bank Failures Posted: 30 Jan 2010 07:00 AM PST "It is interesting to contemplate an entangled bank, clothed with many plants of many kinds, with birds singing on the bushes, with various insects flitting about, and with worms crawling through the damp earth, and to reflect that these elaborately constructed forms, so different from each other, and dependent on each other in so complex a manner, have all been produced by laws acting around us." – Charles Darwin, On the Origin of Species by Means of Natural Selection. When Sir Charles … [visit site to read more]

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