Fed Statement Commentary

By Peter Schiff – Re-Blogged From Gold Eagle

While some may have been confused by Fed Chairman Powell’s circular statements in yesterday’s press conference, the takeaway should be abundantly clear: the period of Fed tightening, is over. The Fed will now hold steady on interest rates, and when they move again, they are more likely to lower rates than to raise them. And while the Fed’s program of balance sheet reductions is technically still underway, Powell made it clear that the program is no longer on “automatic pilot” and that the $50 billion per month of bond sales will likely diminish, and ultimately, conclude much earlier than anyone had predicted just a few weeks ago.

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Weekly Market Wrap

By Mike Gleason – Re-Blogged From Money Metals

Tenuous Markets Bracing for Vindictive House Dems, Budget Crunch, plus an interview with Michael Pento.

Listen at DOWNLOAD MP3 or read the podcast below!

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Coming up Michael Pento of Pento Portfolio Strategies joins me for a conversation you will not want to miss. Michael weighs in on the recent words from Fed Chair Jerome Powell and why he believes the initial reaction from Wall Street about what the Fed will now be doing on interest rates is misguided, and he reveals the inside scoop on why he’s been blackballed by CNBC and others in the mainstream financial media. So, make sure you stick around for an explosive conversation with Michael Pento, coming up after this week’s market update.

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Big US Stocks’ Q2’18 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The mega-cap stocks that dominate the US markets are just finishing another monster earnings season. It wasn’t just profits that soared under Republicans’ big corporate tax cuts, but sales surged too. That’s no mean feat for massive mature companies, but sustained growth at this torrid pace is impossible. So peak-earnings fears continue to mount while valuations shoot even higher into dangerous bubble territory.

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Emerging Market Crisis Spreads To The Core, Central Banks Face Catch-22

By John Rubino – Re-Blogged From Dollar Collapse

One of the things giving “data-driven” central banks wiggle room on their pledge to tighten monetary policy is the fact there are several definitions of inflation. In the US the thing most people think of as inflation is the consumer price index, or CPI, which is now running comfortably above the Fed’s target. But the Fed prefers the personal consumption expenditures (PCE) price index, which tends to paint a less inflationary picture. And within the PCE universe, core PCE, which strips out energy and food, is the data series that actually motivates Fed action.

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Is this the Most Hawkish Fed Ever?

By Michael Pento – Re-Blogged From Pento Portfolio Strategy

My research shows that this is one of the most hawkish Fed rate-hiking regimes ever. It has raised rates seven times during this current cycle and is on pace to raise the Fed Funds Rate(FFR) four times this year and three times in 2019.

But what makes its monetary policy extraordinarily restrictive is that for the first time in history the Fed is also selling $40 billion per month of Mortgage Backed Securities (MBS) and Treasuries starting in Q3 and $600 billion per year come October. Because the Fed is destroying money at a record pace while the rest of the world’s major central banks are still engaged in money printing (QE) and zero interest rate policies (ZIRP), Jerome Powell’s trenchant and unilateral tightening policy is now causing chaos in emerging markets.

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Complacency Reigns Supreme

By Burt Coons (PLUNGER) – Re-Blogged From Rambus Chartology

I had intended to post part III of my interest rate series, however market conditions dictate that I post views on the current market.  This market is now communicating that it is at high risk.  For two months now,  I have been advocating a strategic retreat.  Head for the sidelines and watch the action with an unemotional detachment.  The market is now sounding the alarm and one should be on high alert for a downside acceleration.

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Don’t Fight the Fed! Or the Rest of the World’s Central Banks

By Michael Pento – Re-Blogged From PentoPort

On March 9, 2009, The Wall Street Journal’s Money and Investing section posed this ominous question: “How low can stocks go?” The stench of economic malaise was suffocating as the Dow Jones Industrial Average (DJIA) rounded off its fourth straight week of losses, and the S&P 500 touched below 700 for the first time in 13 years. Goldman Sachs cautioned the S&P could fall to 400, while CNBC’s Jim Cramer was busily calculating the stock valuations of the DJIA components based on balance sheet cash levels.

Yet miraculously, as the market pundits stood despondently believing there was nothing positive on the economic horizon and that no stock was worth buying at any price, investors stared into the abyss and took a leap of faith. And just like that, the market had bottomed. Dow 6,440.08 was a buying opportunity, and with the Fed’s QE spigot operating on full throttle, the Dow was poised for a historic take-off.

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Coming Central Bank Failure

By Mike Gleason – Re-Blogged From http://www.Gold-Eagle.com

Listen to the Podcast Audio: Click Here

Mike Gleason (Money Metals Exchange): It is my privilege to welcome in Michael Pento, President and founder of Pento Portfolio Strategies, and author of the book, The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market. Michael is a well-known and successful money manager, and has been a regular guest on CNBC, Bloomberg, Fox Business News, and also the Money Medals Podcast, and shares his astute insights on markets and geopolitics from the perspective of an Austrian school economist viewpoint.

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