federal reserve IMF Markets Op-ed S&P 500 United States 

Brace Yourself for a Brutal Stock Market Correction

The IMF warns the disconnect in financial markets could lead to a correction in asset prices. The stock market has rallied on optimism about a broad economic reopening. But a resurgence in virus cases and an uneven recovery is causing investors to be more cautious. After the U.S. stock market cratered 34% due to the pandemic in March, stocks have rebounded strongly despite negative news. The disconnect between stock prices and the economy has never been that high. But this disconnect could soon go away. The Stock Market Could Drop…

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federal reserve gold Markets Op-ed 

3 Reasons Why Gold Will Shatter All-Time Highs in 2021

Gold prices are nearing eight-year highs Tuesday, closing in on $1,785 per ounce. The metal has been in an uptrend for years, but the 2020 crisis has helped push prices even higher. Bullion is likely to break through their old record to new heights by the end of next year. Gold prices are closing in on an eight-year high. The metal is now around $1,785 per ounce. That’s getting close to its old all-time high around $1,900 per ounce. Over the past year, gold has soared 27%, beating the stock…

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federal reserve Housing Market Op-ed United States 

A Housing Crisis Is Brewing Because 4.3 Million People Can’t Pay Their Mortgages

Over 4 million individuals have not been able to pay their mortgage payments for 30 days or more. The housing market may see additional selling pressure as pressure on homeowners mount. Renters have also been unable to afford payments, putting additional risks on leasers. A staggering 4.3 million people have been unable to make their mortgage payments, according to research firm Black Knight. This puts additional selling pressure on the U.S. housing market, on top of a potential drop in foreign buyers. Data show that over 8% of all U.S….

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federal reserve Markets Op-ed 

Beware of the Stock Market Bubble: The Fed Won’t Save Investors Forever

The stock market’s valuation is based on nothing concrete; when Q2 earnings come out, it will be a wake-up call for investors. Unless the Fed comes out with a groundbreaking stimulus plan, this rally will run out of juice. Government stimulus isn’t enough to make people spend amid job uncertainty. The U.S. stock market has defied gravity over the past few weeks as Federal Reserve funds boosted investor confidence. Equity prices have risen more than 40% since crashing in mid-March despite a surge of new virus cases and increasingly panicked…

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Dow Jones federal reserve Markets 

Dow Stages Astonishing 1,000-Point Rebound Off Low as Fed Scrambles to Save Wall Street

The Dow Jones rose more than 200 points to start the week. Market bulls helped push the Dow roughly 1,000 points off its lows. Will the Fed’s efforts to halt the slide in equity prices pay off? The Dow Jones opened sharply lower on Monday, but dip-buyers rapidly came in to push the index 1,000 points off its lows. As the Federal Reserve pumped equity markets the promise to buy individual corporate debt, Dow bulls find themselves at a significant inflection point. Dow Rallies As Fed Announced Corporate Debt Purchases…

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Dow Jones federal reserve Jerome Powell Markets 

Dow Futures Crash Despite Fed’s Bullish Stock Market Assist – What Gives?

Dow Jones Industrial Average (DJIA) futures plummeted 500 points after ‘gloomy’ Fed comments. Despite a negative economic outlook, chairman Jay Powell’s response was incredibly supportive for the stock market. Commentators say traders might shrug off the ‘down day’ and we’ll see another leg higher afterwards. The stock market took a turn for the worse this morning as traders digest last night’s Federal Reserve statement. Dow Jones Industrial Average (DJIA) futures point to a huge 500 point slide on Thursday. But why? Powell’s commitment to hold rates at zero for two…

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federal reserve Markets Op-ed Warren Buffett 

This Stock Market Chart Exposes the Insane Level of Retail Investor FOMO

Retail investors historically underperform the market. Lately, they’re bucking that trend – and beating the pants off of the “smart money.” It’s not a good sign when retail investor optimism heats up to sweltering temperatures like we’re seeing now. Retail investors have outperformed the so-called “pros” in the stock market over the past few months. There are two reasons why. First, professional money managers are cautious. They’re evaluating economic signals that, in many respects, conjure terrifying parallels to the Great Depression. Second, retail investors are throwing caution to the wind….

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federal reserve Market News Op-ed S&P 500 

The Stock Market Is Looking Bullish – So Why Don’t Americans Agree?

Expectations of higher stock prices fell in May, according to the Fed’s consumer expectations survey. Consumers see a mean probability of less than 50% that stock prices will be higher a year from now. Consumer sentiment about the stock market is dipping as analyst sentiment grows stronger. When the U.S. stock market started to rebound after hitting bottom on March 23, many analysts warned of another crash. On May 8, Goldman Sachs said that the S&P 500 would plunge by 18% over the next three months. But stocks kept soaring…

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federal reserve Market News Op-ed S&P 500 

The Stock Market’s Greatest Rally In History Will Continue – Here’s Why

The S&P 500 continues to climb despite a bleak economic backdrop. The Federal Reserve is the engine that powers asset inflation. Expect the S&P 500 to print a new all-time high soon. Amid record unemployment, widespread civil unrest, global pandemic, and a shrinking economy, the S&P 500 is 8% off of its all-time high. The benchmark index has printed gains of 37.7% over the last 50 days, putting together the greatest 50-day rally in history. With the Federal Reserve driving this run, expect the S&P 500 to post a new…

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federal reserve Market News mohamed el-erian Op-ed 

The Walking Fed Creates Zombie Horde

Stocks of zombie corporations are outperforming the S&P 500. A horde of companies too dead to feed their debts continues walking due solely to Federal Reserve bailout programs. This subverts the natural selection of capitalism and does not let the brave new world start clean. In the television series The Walking Dead, a virus creates a zombie apocalypse on earth. In reality, the Federal Reserve is working with a global virus to create a plague of zombie companies. Zombie corporations do not produce revenue capable of sustaining themselves. By definition,…

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