NEW YORK (Reuters) - Storm clouds are gathering over the U.S. dollar, threatening a two-year rally in the currency that has squeezed corporate profits and angered President Donald Trump. Dollar bullishness in future markets stands at its lowest level in more than a year-and-a-half, according to the most recent data from the Commodity Futures Trading Commission measuring the net dollar amo... read more

The US Federal Reserve is once again force-feeding liquidity into the system. At its fastest rate ever. The result? Record high stock prices whose valuations defy all logic. What’s wrong with that? Shouldn’t we just enjoy the party and be grateful for our rising 401ks? What’s wrong is that the Fed’s actions are dooming us. Their poisonous cocktail of endless cheap money and rock-bott... read more

The World Economic Forum in Davos, Switzerland later this month is a textbook illustration of how the 1% are no smarter than the rest of us when it comes to resisting crowd psychology. Which is to say they border on clueless. Consider the Forum’s latest Global Risks Report, which reflects the results of a survey of “the World Economic Forum’s multi-stakeholder communities, members of t... read more

The price of gold is up nearly $100 since Christmas, reaching around $1,575 per troy ounce as I write this letter. This most recent price bump is due to the panic over Iran. But the gold price is up nearly 20% over the last year, so there have obviously been plenty of other factors driving the price higher before the Middle East started flaring up again. And there will be plenty more afte... read more

(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast. The U.S. and the rest of the industrial world may have to resign themselves to an extended period of slow economic growth, subdued inflation and low interest rates. The trick will be in avoiding something even worse. That’s the soberin... read more

Job losses tied to bankruptcies soared to levels not seen since 2005 as a slowing economy contributed to a downturn in employment, said Challenger, Gray & Christmas, Inc. Sixty-two thousand one hundred thirty-six job losses were a result of firms going bankrupt and laying off employees in 2019. The amount is higher than the annual totals for bankruptcy-related job losses dating back to 2005, w... read more

Investors who didn’t own gold in 2019 could be kicking themselves after an 18% rise in prices for the year. But it might not be too late to join the rally. Some gold bulls even see the price of bullion breaking the record high set in 2011, when it briefly topped $1,900, roughly 25% higher than current levels. Robust buying by central banks, a weakening of the U.S. dollar, and growing politi... read more

(Bloomberg) -- Gold firmed up a foothold above $1,500 an ounce as investors positioned for 2020, with post-Christmas gains coming even as equities inched higher and U.S.-China trade concerns eased. Silver rose along with platinum in what’s been a banner year for precious metals. Bullion advanced for a fourth day, the best run since October, and headed for the highest close in more than seven... read more

The stock market has gone into full on melt-up mode in December as investors cheer a cooling in the U.S.-China trade war and no indications from the Federal Reserve that rate hikes are in the cards early on in 2020. Stocks are indeed in autopilot mode — investors have their blinders on with respect to anything that could dent equity prices. And so do most prominent strategists on Wall Street... read more

(Bloomberg) -- China’s central bank injected the most liquidity via open-market operations since January, in a push to ensure ample cash supply ahead of seasonal tightness at year-end. The People’s Bank of China added 280 billion yuan ($40 billion) into the financial system with 7 and 14-day reverse repurchase agreements Thursday, while keeping the interest rates unchanged. That came after... read more