A Quick View at Major Asset Classes

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Now that Q2 2020 is behind us, investors and traders have an idea about how big the impact on the world’s economies was during the pandemic. Is it likely to see general lockdowns in the future? Not quite. The United Kingdom’s economy contracted by more than 20% in the second quarter. The Eurozone, the United States, Canada, and Australia – they all suffered major economic blows. Emerging markets had their own problems even before the…

The Internet Boom Is Far From Over

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The recent surge higher in the stock market prices led to investors questioning the fundamentals. It simply does not make any sense to bid for tech and Internet companies at such high valuations – right?  But if as an investor you aim at putting your capital at work in lucrative businesses, with high future potential, Internet businesses fit the bill. Companies like Microsoft, Amazon, Zoom, Alphabet – the ones driving the move higher in stocks…

Is the Stock Market Disconnected From Reality?

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2020 so far has been full of surprises. Any planning at the start of the year had to be revised a few months later.  Everyone in the Western world was taken by surprise by the extent of the virus spread. Authorities reacted by locking the economies down one by one. Yet, after an initial shock, the stock market recovered dramatically. All U.S. indexes are close to all-time highs, and some even managed to print all-time…

Gold Reaching High Valuation Metrics

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Gold reached a new all-time high this year. While considering the current times of crisis, should not come as a big surprise. What is surprising is the way it did it – in a strong, vertical move, breaking all relationships known so far.  It even triggered a sharper move in silver. The gold-silver ratio, for instance, used for investors as a proxy for the price of silver when compared with gold’s price, declined consistently. In…

What Is Happening with Bitcoin?

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The crypto market has come to life lately. More precisely, the biggest ten cryptocurrencies by market capitalization broke higher after forming reversal patterns.  Bitcoin closely followed the U.S. stock market and the initial flight to safety. After halving in value in late March, dropping from 10k to 4k in a couple of days, it recovered the lost ground and now trades back above 11k. What a ride! However Bitcoin’s rise was outperformed by other cryptocurrencies.…

No Alternative to the USD as the World’s Reserve Currency

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The recent leg lower in the USD started polemics among traders and investors. Many voices began arguing that the USD’s role as the world’s reserve currency is in danger.  After all, it dropped 10% against the Euro in less than four months. Is it so that the USD is poised to lose its influence? Unlikely. USD Still Dominates World’s Financial Markets Before going into details regarding the USD’s role in the world’s financial markets, one…

Passive Investing and Why It Matters for Tesla Share Price

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The U.S. stock market is on a tear higher. Ever since the recovery from the March meltdown, the capital keeps pouring in the market, with many names making new all-time highs.  Tesla is one of them. Viewed as more than just a simple electric car company, Tesla benefits from investors’ climate change fears and is a darling stock among the younger generation. However, the numbers behind the company do not justify the current valuation. But…

TRY and Why It Matters for the Euro

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The Euro has had a fantastic second quarter this year. It rose from 1.08 against the USD and reached above 1.19 four months later.  Fueled by the Europeans issuing common debt, the rally seen in the Euro pairs is suddenly threatened by an unusual currency – the Turkish Lira. While Turkey has nothing to do with the European Union, the flows out of the Turkish Lira are enough to create troubles for the common currency.…

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