GBR Market Wrap: Focusing on the Positives

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Here is our latest issue of market insights. We decided to give our readers a bit of a (reading) break this week by focusing on the positives among the plethora of bad news emanating from the markets. While viewing the economic glass as half full, it still pays to be vigilant. Be careful out there!

In this Week’s Issue: September 23, 2011

Weekly Positives
• Federal Reserve does operation twist; U.S. Treasuries rally to new record highs.
• Bankrate.com reports that the average 30-yr mortgage rate falls to 4.0%
• U.S. building permits in August 2011 up 3.2% from July and up 7.8 % from August 2010
• U.S. Existing Home Sales at 5.03mm annualized were 280k more than expected
• U.S. Leading Economic index increased 0.3% in August to 116.2 (2004 = 100)
• Crude oil futures fell below $80 prompting lower gas prices at the pump
• European reality check: Greek economy is only about 2% of Europe’s GDP
• Despite a near certainty of a Greek default, the Euro is still trading around $1.3500
• Sharply lower commodity prices easing pressure on inflation and cost of living

Market Barometers

Stock Market Barometer-2011-09-23

FX and Commodities Barometer-2011-09-23

Weekly Chart

Gold prices crashed more than $100 on Friday but the elephant in the room in terms of market volatility was clearly silver. U.S. silver futures dropped 18% on Friday, the biggest daily loss since 1987. However, there was a bit of a “silver” lining amidst these massive falls in commodity prices. The supporters of doom and gloom scenarios who bought gold, and to a lesser and much later extent also silver, were proven wrong at least for the week.  Perhaps the fall in precious metals will now prompt a move towards a reallocation into equities after the dust settles. Nevertheless, it still pays to keep your financial seat-belt fastened. Be careful out there and tread lightly in these murky waters!

Silver rates

Good luck and good investing!


Clemens Kownatzki, MBA is an adjunct professor of financial risk management at the Graziadio School of Business and Management, as well as the founder and CEO of FX Investment Strategies, a Registered Investment Advisor. In addition to running his investment advisory firm, he is a contributing author at SeekingAlpha.com and BusinessInsider.com. He also authored the book, Money Music 101, available on Amazon and Kindle, in addition to publishing the popular investment blog www.fxinvestmentstrategies.com along with a weekly newsletter.Disclaimer

Neither the information nor any opinion contained in this communication constitutes a solicitation or offer by us to buy or to sell any securities, futures, options or other financial instruments or to provide any investment advice or service. Each decision by you to do any investment transactions and each decision whether a particular investment is appropriate or proper for you is an independent decision to be taken by you. In no event should the content of this communication be construed as an express or an implied promise, guarantee or implication by or from us that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Please note that there is no requirement and no commitment to make any payments to FX Investment Strategies LLC in order to access our published information be it via email or via website publication. All information is publicly available without any required monetary consideration. Any payments or donations made by you are deemed to be voluntary and cannot be considered as payments for investment advice given to you.

Author of the article
Clemens Kownatzki, MBA
Clemens Kownatzki, MBA
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