Business

Submitted by Lance Roberts via RealInvestmentAdvice.com,

“Data Dependent Fed” Ignores Data

I wrote on Tuesday of this week:

It's easy...

But, before we start, some context for just how different it is this time... if The Dow is able to hold this gain through the end of the quarter, it will be the largest quarterly comeback in the history of stocks...

Submitted by Peter Diekmeyer via SprottMoney.com,

The campaign rhetoric so far indicates that a Trump-led Republican administration would implement “big government conservatism,” policies, financed by increased borrowing and money printing. This would put upwards pressure on gold prices.

Submitted by Pater Tenebrarum via Acting-Man.com,

A Useful Leading Indicator?

We often see charts comparing the S&P 500 to the growth in the Federal Reserve’s balance sheet, or more specifically, to assets held by the Fed. There is undeniably a close correlation between the two, but it has struck us as not very useful as a “timing device”, or an early warning device if you will.

JPM's head quant, Marko Kolanovic, who turned somehwat gloomy in the past few months, has seen some hits and misses in his recent forecasts. On one hand he did accurately predict the surge in gold one month ago, as well as the rebound in oil and Emerging Markets; however on the other he suggested that being long VIX and cash would be a good place to wait out the upcoming market volatility.