March 6, 2016
Weekly Market Outlook
By Keith Schneider
World Equity markets ended the week up yet again, with the dead cat bounce continuing upward in its acrobatics. This put the US equities market up over 2% for the week. The payrolls report was positive and the economy seems to be chugging along at a modest positive pace. The disparity between longer term momentum, which has clearly broken, and the economic realities remains divergent.
The big uptick in Oil and Commodities might have marked the end of the deflationary spiral that the Central Bankers have been trying to stem. What remains to be seen is will the bankers get more than they wished for. Gold miners are up almost over 40 % YTD on the heels of a $200 per ounce YTD rally in the yellow relic. Warehouse stocks of physical Gold are razor thin and BlackRock has suspended issuing new shares of its gold backed ETF, IAU.
Market unknowns like the outcome of the US election along with the disintegration of the Republican party is an uncertainty that creates market anxiety and increased volatility. Another unknown is conflicting data coming out of China. Official reports vary from things are slowing down considerably to everything is just fine. Of course dissenters or those spewing any rhetoric challenging party authority are being hauled off to jail and silenced. This is not the type of open reporting that free markets demand.
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