In the short to medium term, the U.S. dollar and currencies are heavily influenced by the actions of the Fed. As the Fed may be reading tealeaves as much as anyone else, we may be facing particularly high policy uncertainty that, in turn, reflects on elevated volatility in the bond and currency markets. The good news is that this may yield opportunities for the prudent investor.
India has a history of gold ownership, spurred by long-term experience of a weak rupee. Only a fool leaves rupees on deposit, because they usually buy less and less every year. Alternative stores of value such as equities have been nowhere as good or certain as gold.
The “cleanest” dirty shirt, the U.S. dollar, is down versus the euro so far this year; and was down last year. If this is a strong dollar environment, are investors prepared for a weak one? With plenty of dirty laundry in the world, we ponder how investors might be able to profit from actively managing currency risk.
This regular column reviews the condition of several different markets including: stocks, commodities, currencies and precious metals. This week focuses on the Wilshire 5000, West Texas Intermediate crude oil, palladium, and the Australian dollar.
Gold bullion traded for London delivery rose back through $1400 for the fifth day running on Wednesday morning, rising as the US Dollar slipped following weaker-than-expected jobs data. Gold priced in the Euro ticked higher to €1075 per ounce, but was unchanged for the week so far in terms of Pounds Sterling below £914.
This article explores the subject of Quantitative Easing (QE) and tries to answer the following questions: What is QE? How does QE work?, What is QE supposed to do?, and Why has QE failed to stimulate growth?
Neil Irwin over at the Washington Post recently set about reminding the unwashed masses that, only the dollar is money, in his piece “Bitcoin is ludicrous, but it tells us something important about the nature of money.” He starts us out with his “givens”.
Anyone who’s ever had a brick fall on one’s feet knows how much it can hurt. It’s little consolidation if that brick is made of gold. What’s happening to the price of gold? And has our outlook changed, be that for gold, the U.S. dollar or currencies more broadly?
The ability of a business to maintain accurate and meaningful accounts is undermined by the debasement of the accounting medium, fiat currency. Understand this and you understand the corrosive effects of weak money.
Is it time for the Federal Reserve (Fed) to stop printing money? Today, we focus on what might be going through Fed Chair Bernanke’s mind and the possible implications for the U.S. dollar and investors.