Hedge Funds Raise Gold Wagers as Goldman Sees Drop: Commodities

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 19-01-2014

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Goldman expects bullion to fall to $1,050 in the next 12 months as the Federal Reserve reduces monetary stimulus, analysts led by Jeffrey Currie, the bank’s head of commodities research, said in the report last week. Precious metals are Morgan Stanley’s “least preferred” commodities, and physical demand from China and India won’t be enough to support prices, analysts Adam Longson, Bennett Meier and Peter Richardson said in a Jan. 17 report.

Hedge Funds Raise Gold Wagers as Goldman Sees Drop: Commodities – Bloomberg.

Avoid Canada in 2014

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 27-12-2013

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Those headwinds include our high levels of debt, which will dampen consumer discretionary spending. He adds our housing market should see a 10% to 15% decline over the next few years.

And as the U.S. economy improves, materials, energy and gold will “see another year of pain in the market,” he says.

This will also put more pressure on the Canadian dollar. “As our economy softens, we’ll lose our safe-haven currency appeal,” Adatia says. He anticipates the loonie will hover around 90 cents in 2014……………..

Avoid Canada in 2014 | Advisor.ca.

China tightens restrictions on bitcoin trade – The Globe and Mail

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 22-12-2013

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Shanghai-based BTC China, the world’s largest bitcoin exchange by volume, posted a notice about the new regulations on its website, two weeks after Beijing banned financial institutions from trading in bitcoin due to the risks involved…………………..

China tightens restrictions on bitcoin trade – The Globe and Mail.

Why ‘taper terror’ is frightening investors

Posted by Ravi Gulati | Posted in Economy & Markets, Financial Planning | Posted on 14-12-2013

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The big question is: What happens then?

There are two schools of thought. The first is that most of the damage was done in May and the market has now positioned itself to absorb the impact when the cutback finally begins.

The other is that we should expect a significant correction in stock prices when the Fed announces the start of tapering. That view is strengthened by the big run-ups the U.S. indexes have enjoyed this year, with the Dow and the S&P 500 hitting all-time highs. Tapering could be the catalyst that triggers the pullback that many analysts believe is inevitable anyway.

The bottom line is that no one knows for sure how the markets will react when the Fed eventually pulls the plug. We’re in uncharted territory.

If you’re sitting on some big stock profits and you’re the nervous type, you might want to consider cashing in some of your chips now, just in case things go badly. But look at the tax consequences first — if the money is in a non-registered account the Canada Revenue Agency will want a share of your capital gains.

On the bright side, the start of tapering will be a signal that the U.S. economy is finally back on a firm growth track. That has to be good news for everyone.

Why ‘taper terror’ is frightening investors | Toronto Star.