Gold, a solid investment

Gold Reserves

Gold as a safe haven It is a well known fact that gold becomes a safe haven during uncertain times, and these are uncertain times. So it’s no surprise then that gold has increased in value during this period. At its highest in recent weeks, gold has reached: $1766 per troy ounce. Governments around the world struggle to re-open their closed economies as the coronavirus pandemic wreaked untold damage as it ravaged through nations forcing world-wide lockdowns. Gold, once again became a safe haven. Despite the stock market recovery since…

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Stocks continue surge despite economic concerns

Stock Market

Tensions between the U.S. and China flared up further again today. China reportedly rejected a U.S. proposal for the Security Council to meet over the issue, whilst U.S. secretary of state Mike Pompeo declared that Hong Kong is no longer autonomous from Beijing. This morning China is also reported to have approved the controversial security legislation for HK. Tensions are showing signs they could bubble up even more and potentially boil over – I worry about an embattled U.S. president in this election year facing a national crisis at home and what he may…

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Jittery market gyrations

Fearful

Market jitters On Monday, 18th May 2020 the markets basked in positive news pushing stocks up. Fed chair, Jerome Powell, said he had more ammunition to help the economy recover from its coronavirus hit. Then came more positive news from a U.S. pharmaceutical company, Moderna Inc., saying that their vaccine phase one trials had gone very well. Markets soared on the news with the Dow gaining over 900 points. Later, U.S. stocks pulled back in the final hours of trading yesterday as a report surfaced apparently casting doubt over the…

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The shape of things to come

Future recovery

Bounce, Recession or Depression? As economists, traders, investors, politicians and media pundits talk of economic recovery, many countries have already entered recession. The latest being Japan, the third largest economy in the world. The UK, Germany, France and Italy have all entered technical recessions. ‘V’ or not to ‘V’ ? The very same ‘analysts’ also spoke of recovery not of recession. The chatter was about the type of recovery even. Whether economies would see a, ‘V’ shaped (a fast bounce bank to normal), a ‘U’ shape, an ‘L’ and a…

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The German economy contracted by 2.2%

Gross Domestic Product

The German economy is reported to have contracted 2.2% in the first quarter 2020, the worst period in 11 years, according to the Federal Statistical Office. The decline was worse than the 2.1% drop expected by economists. GDP from the fourth quarter was revised down to a -0.1% decline from a previous estimate. This data suggest the German economy entered in a technical recession. Other market news U.S. markets closed up Thursday even after job data came in worse than expected. The DOW, for example, climbed form an intra day…

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U.S. – Fed chair Powell sees significant downside risks

Virus damaging economies

Powell says virus poses lasting harm The U.S. economy faces unprecedented downside risks that could do lasting damage if policy makers don’t rise to the challenge, Federal Reserve Chair Jerome Powell is reported to have said. Fed Chairman Jerome Powell said more measures will likely be needed to pull the economy out of its downturn. It was not specified what those measures will be – but pointed to the likely need for more fiscal support. ‘While the economic response has been both timely and appropriately large, it may not be…

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UK GDP takes 2% coronavirus hit

Economic damage

The UK economy shrank by 2%, the worst fall since the financial crisis of 2008. The Office for National Statistics (ONS) said the economy contracted by 2% in the three months to March, following zero growth in the final quarter of 2019. The decline was marked by a record fall in March 2020, and reflects only ‘one‘ full week of lockdown. Analysts expect a bigger economic slump in the current quarter. Is the UK now in recession? The UK is not alone facing such dire GDP data. To soon to…

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Central bank stimulus can’t go on forever

Central bank

Money machines Central banks have been pumping money into their respective economies around the world. But it can’t go on forever, and at some point economies will have to learn to stand on their own two feet again. It won’t be easy. Coming out of lockdown Countries around the world are attempting to break lockdown measures put in place to spite the coronavirus. It’s going to be a tough journey. We don’t yet fully know just how much damage has been caused by these policies – and we fear a…

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Euro zone GDP slows in the fourth quarter, Germany stagnates

European Union GDP

Germany’s economy stagnated in the 4th quarter Germany released GDP data today, 14th February 2020 for the 4th quarter, showing there was no growth in Q4 2019 and that the annualised rate of growth was just 0.4%. A report in the FT estimates that this will drag down growth in the Eurozone to its slowest in 7 years. Not good. Bad GDP figures rewarded by good DAX figures? -The German DAX was up at: 13785 – 10:15am 14th February 2020. Eurozone GDP The EU’s GDP – in the 19 countries…

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European stocks slide amid weak data and coronavirus concerns

Stocks fall

European stocks slide European stocks fell Friday as German industrial production slumped. Investors were also waiting for U.S. jobs data due for release Friday at: 13:30 GMT. The coronavirus concern remains high! Industrial data readings German industrial production came in far worse than expected, with a 3.5% drop in December against expectations for a 0.1% rise. Manufacturing misery was aggravated further by a whopping 8.7% monthly slump in construction. French industrial production also fell further than analysts predicted in December. U.S. stocks U.S. stock futures slipped ahead of U.S. jobs…

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