Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the effects of higher interest rates on stock markets. (See the Stocks section and the Economy and Finance section.)
Precious Metals:
August’s Gold Market Looks ‘Ready For The Up Cycle’ – Sprott Money
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VIDEO — Michael DiRienzo of the Silver Institute on Silver’s Performance
Stocks (Effects of Higher Interest Rates):
At The Guardian: Apple hits $1trn stock market valuation; Bank of England raises interest rates – as it happened
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A viewpoint from the Persian Gulf: Will higher US interest rates and the stronger dollar destroy the stock market?
Economy & Finance (Effects of Higher Interest Rates):
The BBC reports: Interest rates: What the rise means for you
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This chart of the Fed Funds Rate shows how interest rates were held artificially low for so long. (View it at the 10 year scale.) And now, just a modest rise in rates is threatening to kill the economic expansion.
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Charles Hugh Smith: Here’s Why Rip-Roaring Inflation Is Inevitable
Forex & Cryptos:
EUR/USD could tumble down below the 2018 low on a strong NFP
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It is fascinating seeing the Forex world gradually morph. Now that there are cryptocurrency futures available, the Forex traders have all added crypto chatter to their daily watches. It is notable that ForexLive now has a Cryptocurrency section in their site’s top bar. And all of the Forex forums now have plenty of discussions about going long or short on Bitcoin, for example.
Tangibles Investing:
The What Sells Best News web site recently updated their list of what some notable collectibles fetched at auction.
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Re the chart of bank buying. The 1920’s charts are making the rounds again. The correlation to the top in ’29 is being eyed by many. I will say that in 2016 the market looked topy and the same correlation was pointed at by many and not just doomsdayers but ‘pros’ on Wall Street. Well, 2018’s, toppiness looks similar to both 2016 and the 1920’s. There is a difference, no QE and no ZIRP this time like there was in ’16. But, the economy is perceived to be going well so it might not be the end of the current run higher. It’s always tricky during long flat periods in the market. Which way will it break, higher or lower?