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The U.S. dollar has always been a keystone player in international trade and a vehicle of economic authority. However, several years back, publications and experts started addressing a common issue: the devaluation of the dollar. For people in the street, investors, or policymakers is an evasive financial term that is, in reality, a burning issue …
Continue reading “What Causes the U.S. Dollar to Lose Value?”
Currency war is a worldwide financial trend where nations lower their currencies intentionally to take advantage of the trade. In the beginning, people may think that a strong currency is a symbol of economic prosperity and security. Nevertheless, in the global trade and international finance sectors, a dollar that is too strong can be a …
Is the stock market overvalued? The question always arises whenever the market falls or valuations reach historical peaks. By early 2025, U.S. share markets are showing evidence of re-establishment after an AI-driven large-cap tech rally in late 2024. Many of the stocks have undergone significant price decreases within the last few months, which has contributed …
Today’s biggest companies are small when compared to dinosaurs 300 years ago, and the wealth is more evenly distributed. This report is a summary of largest companies world-wide. The top 10 are Notice that the list of largest companies by revenue is quite different Key highlights • Three industries show significant upward trends: Industrials (+153%), …
This post considers worlds markets performance within a long timeframe. The markets signal rotation. SENSEX is as strong as ever, but Chinese indices are under pressure and European indices are rising. S&P and Nikkei are relatively neutral. Strong volatility everywhere. Maybe volatility will subside when Greece politics and Crude price get balanced.
Many economists are signalling deflationary pressure [possible growth reduction] in US. Lower guidance is coming from energy sectors. Bullish FED does not help either… This in-depth analysis of situation in US explains why there is no deflation in US and earnings are reasonable. The main arguments are: 1. Drop in commodities prices allow Americans to …
This great article shows the current commodities supercycle. Commodities are generally moving in a very wide “channel” supported by inflation with roughly 25 years cycle. The current cycle should be modified by 2008 crisis results for better understanding. It appears that the overall commodities prices are falling right now, as explained by the supercycle theory. …
Unlike the status of oil, which is pretty clear right now, the status of gold is more complex. Gold demand is governed by exchange rate uncertainty and monetary inflation. We see conflicting trends of uncertainty and deflation, with rapidly changing monetary policies, which causes unpredictable results. We have seen a rally fueled almost entirely by …
We are probably witnessing the biggest word-wide deflation after the big depression of 30s. This article explains how US QE excess liquidity could cause such worldwide deflation. Will be interesting to see if ECB QE and Abenomics can handle it, and how the Chinese government will regulate overproduction and speculative bubbles resulting.
The USO structure shows that buying ETF not necessarily reflects option prices due to contango. There is more than one ETF per asset, but liquidity may be more important than performance in some cases. Occasionally it is useful to buy mining companies/EFT/MLP instead of buying the commodities. The mining companies typically have much higher volatility. …