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
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 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

Stock-Markets

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.

Invitation

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 http://www.MarketOracle.co.uk - 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