COMEX Warehouse Gold Inventories are Low, Asian Demand Is High
Gold and silver have been bleeding for a month now and have lost close to 6.14% and 6.48%, respectively, on a 30-day trailing basis.
The Indian market’s gold imports rose by close to 61% due to the recent easing of the Reserve Bank’s gold import restrictions.
In recent years, Japan’s government spending has soared. The aggressive fiscal stimulus led to a debt level that is now more than two times that of Japan’s GDP.
Japan’s Prime Minister Abe has brought about changes in the labor market, and female labor force participation is now on the rise.
While the Federal Reserve is likely to begin raising rates later this year, the Bank of Japan remains in easing mode. It is planning to continue to expand its balance sheet, providing a potential tailwind to the country’s stocks.
The profitability of Japanese stocks has improved since late 2012, from ~4% to above 8%. However, profitability hasn’t hit the highs of the pre-crisis period yet, and it is slightly lower than American stocks.
Currently, Japanese stocks are trading at a discount of 50% over the S&P 500. Historically, the discount has been slightly less, at ~44%.
Japanese stocks are nowhere close to the levels seen in the late 1980s. Japan’s Nikkei 225 Index peaked at ~40,000 in 1989, but since then it has been a painful ride for the Japanese.
The FOMC looks at several economic indicators while keeping a close eye on economic growth, the unemployment rate, and inflation.
The Federal Reserve (or Fed) had conducted quantitative easing to bring the US economy back to life. This led to an increase in the size of the central bank’s balance sheet to $4.5 trillion.
A fall in energy prices has been a source of constant worry for monetary policymakers.
The Federal Reserve assess inflation expectations in several ways. It looks at market surveys and household surveys.…
There are several measures of inflation. You may have heard of the CPI (Consumer Price Index) and the PPI (Producer Price Index).
On its own, the unemployment rate doesn’t paint a complete picture of the labor market’s state. To understand the labor market better, we need to see if there’s any slack.
The BEA (Bureau of Economic Analysis) released its advanced estimate of 2Q15 US economic growth on July 30.
Equities have been big beneficiaries of the low-interest-rate environment in the United States. Stocks read the July FOMC statement as dovish and rose in response
Though policymakers have clearly stated that they’d be data-driven while deciding on effecting a rate hike, it seems that there’s more than economic indicators on their mind.
The FOMC met in a scheduled meeting last week to chart a course for monetary policy in the United States.
After the renowned bearish sentiment for gold, we saw a little hope on July 31, 2015. Physical gold and silver sales accelerated.
Commodity-rich Brazil happens to be one of the important emerging markets (EEM) of the world. However, declining commodity prices are impacting Brazil’s exports.
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