Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Financial Markets Wrap - US Economy, Bonds, Currencies and Stock Market

Stock-Markets / Financial Markets Apr 09, 2007 - 07:12 PM GMT

By: Douglas_V_Gnazzo


March ISM's factory gauge came in at 50.9 down from 52.3 the previous month. It remains just barely above the important 50 level. Most of the internal figures were weak as well.

The new orders index fell to 51.6 from 54.9. The Production Index fell to 53 from 54.1 and the Employment Index fell to 48.7 from 51.1. Even the Prices Paid Index fell to 65.5 from 69.

The ISM's non-manufacturing index fell to 52.4 in March, the lowest level in almost four years. Not the best of reports.

The Labor Department reported the jobless rate fell to 4.4%. Employment increased 180,000 that followed an 113,000 rise in February.

Average weekly hours increased to 33.9 from 33.8. Worker's earnings rose 6 cents or 0.3% after a 0.4% increase the month before.

The Commerce Department reported that sales at U.S. wholesalers increased 1.2% compared to a 0.5% rise in inventories. Last month the numbers were 0.9% versus 0.6%.

The Fed reported that consumer credit increased $2.973 billion to $2.410 trillion in January, and that consumer debt increased $6.61 billion.

China's Central bank Governor Zhou Xiaochuan ordered banks to raise the deposit-reserve ratio by 0.5% to 10.5%. This is the sixth time in less than a year that the PBOC has raised reserve ratios in an effort to slow down inflation.

The latest report had China's M2 money supply growing at 17.8% in February, which is enough reason to make anyone pause. Can't say they aren't trying to slow things down.

Iran has outlawed the US Dollar and will put anyone in jail that uses it. Euros are the currency of preference for international transactions, as in paying for oil.

Fannie and Freddie - the ma & pa of mortgages, have $79 Billion in capital, yet they have guaranteed $3.8 TRILLION in mortgage loans. Try that with your business some day and see where you end up. Must be nice to be subsidized by the government - but wait a minute - who subsidizes the government? That's right - we do.

In 2006, subprime lending in the US housing market totaled 22.3% of all mortgages. Not to worry says the Fed; the damage seems to be under control.

The $64 dollar question of the day is whether the subprime mortgage debacle is behind us or not, along with its attendant thugs: carry trades, derivatives, and market swoons.

I remain unconvinced that all is well in paper fiat land; there is just too much debt and no money to pay for it all. Every credit boom ends in a bust, and this one will as well.

The Fed no longer has its coveted inverted yield curve, as long term rates have begun to rise. One day the Fed is perceived to be going to lower rates; and the next (as today after the employment figures) they can't possibly lower them, and may have to raise them.

It appears that the Fed is stuck between a rock and a hard place. They're damned if they do and damned if they don't. Either the dollar goes or bonds go - or perhaps both. Gold is picking up the scent.

Those who squeal about commodities being down and out for the count are obviously looking at weighted indexes that skew the picture. The CCI Index shows the trend is up.

Oil has had a nice rally back up and the industrial metals are once more on a tear. Gold and silver are performing well, as are the gold and silver stocks.

Will May bring a low or a high or perhaps neither - perhaps we just keep on keeping on. We wait for the market to show its hand. We are long the pm stocks and will add more on weakness that holds above previous lows.

For now all appears quiet on the eastern front, as Iran has returned the British marines. Still there are rumors out of Russia of a U.S. attack in mid-April. We hope and pray that none occurs, but hope with this regime is like hope with investing - it's a no no.

Iran no longer accepts U.S. dollars in payment for oil or anything else; as a matter of fact they will throw anyone using the U.S. currency in jail.

The non-existent cold war seems to be getting hotter. Something about a star wars scenario in Europe in favor of the U.S. against Russia. Somehow the mid-east is said to be the target.

Australia has vowed to protect Japan from encroachment from China, which is more then a bit odd.

But Easter is upon us with a 3 day respite - so may April showers bring May flowers that can replace the bullets and bombs.

Don't take out any debt. Get debt free as soon as you can. It's the best investment there is - bar known. Then buy those shiny yellow bars.


Stop by our website and check out the complete market wrap, which covers most major markets. There is also a lot of information on gold and silver, not only from an investment point of view, but also from its position as being the mandated monetary system of our Constitution - Silver and Gold Coins as in Honest Weights and Measures.

There is also a live bulletin board where you can discuss the markets with people from around the world and many other resources too numerous to list. Drop by and check it out.

Good luck. Good trading. Good health. And be careful out there - things are getting a bit whacky. And that's a wrap.

Douglas V. Gnazzo
Honest Money Gold & Silver Report

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and vintage historic landmarks. Mr. Gnazzo writes for numerous websites, and his work appears both here and abroad. Just recently, he was honored by being chosen as a Foundation Scholar for the Foundation of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly, Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in