Wall Street may be at all-time highs, but “behind the lines,” there’s a mass exodus from bonds, a frenzy for gold, and a dollar selloff. “Smart money” is looking for safe havens. And all this while the markets worldwide are experiencing, more or less, a santa rally, giving the message that everything is fine. But …
Category: Market Analyses
Analyses and articles for world financial markets
What do we expect about Stocks, Bonds and Gold for 2024?
Companies faced the spike in inflation to boost their profit margins – a phenomenon known as greed inflation. As a result, consumer prices have probably risen more than warranted, with cash hoards built up thanks to the expansionary fiscal policy of governments around the world during the pandemic making consumers less price-sensitive. Margins rise again …
How healthy is the Global Banking “system”?
Markets are still digesting the fallout from the failure of Silicon Valley Bank, the second largest bank failure in US history and the biggest collapse since the 2008 financial crisis, which was quickly followed by the collapse of New York’s Signature Bank, when suddenly what seemed to be just a problem of mid-sized American banks …
The digital dollar and the collapse in the “fake” wealth of the markets
Why did the decoupling of production from consumption through the operation of financial markets and the leverage of values become the greatest historical economic experiment? The financial “bubble” that began in the late 1980s is expected to burst with a wave sweeping away the forms of economies we know. “Bad currency” had long driven out …
When are Real values produced vs the “Bubbles” of Casino Capitalism
In a complex juncture where few wise people “read” the real facts of economies, it is time to face structural questions: Many people believe – and on the surface they are not wrong – that a general increase in stock prices is an important factor in the strength of an economy. However, this is an …
FED: Vicious economic cycle with interest rate hikes leads to a crisis-crash like 1930s
The Fed’s “medicine” of lowering interest rates appears to be killing the sick American economy. The credit crunch due to unprecedented tight monetary policy has led to a surge in bankruptcy filings, portending a vicious recession and soaring unemployment. The flow of money supply (the dollars the Fed prints) fell again in October, remaining deep …
Why High Investment Grade Bonds remain the preferred choice?
Bonds and especially those characterized as high investment grade remain the preferred choice for Trust Economics. With yields trading at multi-year highs – a result of interest rate hikes by central banks – government bonds offer returns far better than any deposit account (even term deposits) while missing the risk of equity investments and commodities. …
Why is the only deposit banking product a deposit, while everything else is an investment?
Borrowing rates may be rising, but deposit rates remain at zero, frustrating depositors who see inflation erode the value of their money. The average interest rate on new loans in the Eurozone was 3.85%. In contrast, the average deposit rate was 1.15%. Any attempts by the Central Banks of the ECB in the member countries …
Loans: When is it beneficial to change the interest rate from floating to fixed?
The answer depends mostly on how close it is to expiration. Important factors are the rate of rise in interest rates, the margins on new loans and how much risk a borrower can bear. Since July, the ECB has raised interest rates by three percentage points, putting corresponding upward pressure on the benchmark floating rate, …
How the ECB Will Force Banks to Raise Deposit Rates
The monetary policy of the EU it seems at the moment to be on the one hand ineffective, on the other hand leading to a dead end causing negative effects on the economy, with no benefits for anyone except the banks who will see their profits increase from the increase in loan rates while they …