Current News

  • Anglo American raises iron ore target for the year

    Anglo American raises iron ore target for the year

    Iron ore production up 27% to 15.7 million tonnes. ...read moreRead More »
  • Price recovery sparks domestic Chinese copper, iron ore production boom

    Price recovery sparks domestic Chinese copper, iron ore production boom

    China's dozens of iron ore mining companies produced more in June than any month since October 2015, making the most of higher prices and record-breaking steel output. The country's crude iron ore production jumped 5% from a year ago to 124.7 million tonnes (on a 58–65% Fe content basis tonnage …Read More »
  • SA proposes restriction on renewal of mining rights

    SA proposes restriction on renewal of mining rights

    Mosebenzi Zwane move raises the stakes in his dispute with the mining sector. ...read moreRead More »
  • Exclusive Insights on the Gold Market – Wed 19 Jul, 2017

    Exclusive Insights on the Gold Market – Wed 19 Jul, 2017

    Sentiment Indicators For Gold – ChartsJordan Roy-Byrne joins me today to outline some sentiment indicators for gold and how they are impacting the market. Below is a chart which shows the CoT for gold, the GLD put/call ratio, and gold’s 50 day rate of change. Click here to visit Jordan’s …Read More »
  • Daily Market Wrap – Wed 19 Jul, 2017

    Daily Market Wrap – Wed 19 Jul, 2017

    Comments on the Canadian Dollar, Euro and CopperCurrencies and copper are the focus of today’s market wrap. Some of the strongest uptrends this year has the in the Euro and over the past two months in the Canadian Dollar. I share my thoughts on these currencies and if the runs …Read More »
  • The Real Reason Stocks Are Setting Records?

    The Real Reason Stocks Are Setting Records?

    This post The Real Reason Stocks Are Setting Records? appeared first on Daily Reckoning. Strange winds gust through Wall Street… Janet Yellen and her mates have elevated interest rates four times over the past 18 months. And in September they plan to start working on the impossible $4.5 trillion balance …Read More »
  • The Imperial City’s Fiscal Waterloo

    The Imperial City’s Fiscal Waterloo

    This post The Imperial City’s Fiscal Waterloo appeared first on Daily Reckoning. [Urgent Note: David Stockman warns that the nation’s economy and a massive debt ceiling hangs in the balance as Wall Street’s peak bull stocks carry on. The economist is on a mission to send his new book TRUMPED! A …Read More »
  • Exclusive KE Report Commentary – Wed 19 Jul, 2017

    Exclusive KE Report Commentary – Wed 19 Jul, 2017

    An Introduction to Anaconda MiningIn my constant effort to introduce interesting and less known companies to all of you, today we get an introduction to Anaconda Mining (TSX:ANX & OTC:ANXGF). President and CEO Dustin Angelo joins me to outline the Company which is focused in Eastern Canada in Newfoundland and …Read More »
  • Finishing Last Banks Huge Biotech Gains

    Finishing Last Banks Huge Biotech Gains

    This post Finishing Last Banks Huge Biotech Gains appeared first on Daily Reckoning. In the biotech industry, you don’t always have to be the first to market with a new way to treat disease. Many times, the biggest fortunes are made by coming second — or even third — if …Read More »
  • Company News – Wed 19 Jul, 2017

    Company News – Wed 19 Jul, 2017

    Secova Metals is Drilling In Quebec at the Duvay/Chenier ProjectSecova Metals hold two projects in Quebec, the Duvay/Chenier Property and the Eagle River Property. The news today states that the permits have been received and drilling is starting at the Duvay/Chenier Property. The phase 1 drill program will “consist primarily …Read More »
[Most Recent Quotes from www.kitco.com]

Commodities are powered by Investing.com

The Real Reason Stocks Are Setting Records?

This post The Real Reason Stocks Are Setting Records? appeared first on Daily Reckoning.

Strange winds gust through Wall Street…

Janet Yellen and her mates have elevated interest rates four times over the past 18 months.

And in September they plan to start working on the impossible $4.5 trillion balance sheet they’ve amassed post-2008.

Key members of the Federal Reserve itself have admitted that equity prices are “high” — a near declaration of war.

Stocks are normally cowards that go to pieces at the first sight of trouble — when the central bank menaces their prosperity, for instance.

But not these days…

Stocks conquer new records almost daily. The Nasdaq posted another yesterday. The S&P closed within three points of its own. And today it set another record.

Something’s not right…

Morgan Stanley suggests the market could be “in broad agreement with monetary authorities over withdrawing accommodation.”

Yes, we suppose it could. Anything’s possible.

But they also venture on another possibility altogether:

“It may also suggest that there are alternative sources of liquidity funding the current risk bull run.”

A scandalous suggestion.

But could it be? Are stocks setting records due to alternative sources of liquidity yet to be identified?

Morgan Stanley pursued the question no further.

So we stepped into our gumshoes… opened our sleuth bag… and took to the investigation trail…

We immediately got the scent of a possible suspect, a possible alternate source of liquidity.

And the suspect was a usual one — central banks.

Not necessarily our own central bank. But foreign suspects like the European Central Bank… the Swiss National Bank… the Bank of Japan.

For example, analyst Bryan Rich noted in Forbes (May 16) that the Swiss central bank has been scooping U.S. stocks with both hands — $80 billion worth through the end of the first quarter.

Rich says that’s 29% more than at the end of last year.

And is it a coincidence that the Nasdaq trades at record heights?

Perhaps not once you realize that the $80 billion poured primarily into shares of Facebook, Alphabet (Google) and Apple.

And the Swiss central bank is no trifle — it’s the world’s eighth-largest public investor.

Meanwhile, we understand the Bank of Japan is now among the five largest owners in 81 companies on the Japan Nikkei 225 index… and nearly the primary owner in 50 of them.

In April, Bank of America (BofA) noted that central banks around the world had already purchased $1 trillion in assets to that point of the year.

BofA’s team of analysts likened it to a “supernova of liquidity”… the “$1 trillion flow that conquers all”… and said it was the “best explanation” for record-high stocks.

MarketWatch went so far as to claim that BofA’s analysis “might be all you need to know about stock and bond market performance in 2017.”

And so we may have solved our caper… the alternate source of market liquidity.

As noted above, the Fed will soon engage in “quantitative tightening” — trimming its gargantuan balance sheet.

To which MarketWatch sneers:

Quantitative tightening? Oh, please. Central banks, courtesy of the eurozone and Japan, are still buying financial assets …read more

Thu, Nov 28, 2030
The Gold Report
Wed, Jul 19, 2017
The Korelin Economics Report
Wed, Jul 19, 2017
Daily Reckoning feed
Wed, Jul 19, 2017
PRNewswire-Mining and Metals
Wed, Jul 19, 2017
The Daily Gold
Tue, Jul 18, 2017
Acting Man