As I predicted on Monday, the Federal Reserve kept interest rates on hold yesterday and this saw the US dollar drop against most of its major trading partners. The central bank cited low inflation and uncertainty abroad as the main reason to keep rates on hold and this has pushed market expectations for the first rate hike out to 2016. Read more »
Stock markets finished higher last week with the Dow Jones Industrial Average up just over 100 points and the benchmark indexes climbing around 2% in what was a shortened week thanks to the public holiday. This was one of the best weekly performances since March. Read more »
US stock markets climbed on Thursday as stimulus from Chinese policymakers helped put a stop to plunging Chinese shares.
Read more »
It’s been another busy week for traders who have had to deal with economic data, Federal Reserve comments, Greek election concerns and US earnings.
Read more »
Well after four days of solid gains, stock markets finished in the red again yesterday as the price of crude oil collapsed, dropping 2.4%. I have to admit I didn’t see oil falling as much as it has done. I’ve always been somewhat of a perma-bull when it comes to energy and the dwindling global reserves of the black stuff.
Anyway, I only have one oil explorer in the portfolio so my other stocks will hopefully balance out the volatility. And I was pleased to see $PKG jump over 10% on Tuesday. Read more »
I just published an article on Seeking Alpha about one of the stocks in my portfolio; Alliance Resource Partners $ARLP.
ARLP is an Eastern MLP coal company that has been able to raise it’s distribution every quarter since 2007. This coal stock has had an impressive rise since the financial crisis, gaining over 300%. However the stock has been hard hit in recent weeks along with most of the rest of the market. Read more »
Shiller CAPE may be elevated and volatility may be low but recent economic data has been improving. This is now pointing to above trend GDP growth in the third quarter, bouncing back from the Winter snap. July and August are usually quiet months for trading and there lacks a catalyst for a downward turn.
As a result, I have cautiously increased my longs and made these stock market buys last week:
Toyota Motors $TM
Freeport McMoRan Copper & Gold $FCX
Diploma Plc $DPLM.L
Games Workshop $GAW.L
The ECB cut rates, unemployment stayed at 6.3% and the VIX dropped below 11 this week, the lowest level since 2007. Although I want to be long, I can’t ignore the drop in volatility and feel a correction is just around the corner. Accordingly, I have moved 90% into cash.
Here are this week’s links:
Why you can’t just buy the VIX
Correction 2014: Are you prepared?
What next for the euro? Interesting insight from Monex
How to take money off trend followers
Buying the most shorted has been rewarding
Keep an eye on the world’s economies with Trading Economics
That’s all for now. More next week. 🙂