Bonds & Interest Rates
Summary
BOJ took no fresh action despite cutting its growth and inflation forecasts.
Yen surges and Nikkei slumps.
The Reserve Bank of New Zealand left rates on hold, defying some investors, and sending the Kiwi sharply higher.
The fOMC statement failed to convince investors that a June rate hike is likely.
The Bank of Japan defied expectations and its economic assessment to leave policy unchanged. The inaction spurred a 3% rally in the yen and an even larger slump in stocks. The financial sector took it the hardest and dropped almost 6%. The yen’s surge helped underpin other Asian currencies, especially the South Korean won, which gained nearly 1%.
related:
April 22, 2016 –
Daily ratios of silver versus gold and miners versus bullion are at overbought levels in the RSI(14). If this was the first leg up in a new bull market, then we can look forward to a deep correction that provides buying opportunities. As noted last week, optimum pullbacks in the silver’s should be to the 50-day exponential moving averages.
Opinions in this report are solely those of the author. The information herein was obtained from various sources; however, we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.
Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.
BOB HOYE, INSTITUTIONAL ADVISORS
EMAIL bhoye.institutionaladvisors@telus.net
WEBSITE www.institutionaladvisors.com
related: A view from Marc Faber:
Faber: Physical Gold Storage Costs, The Fed & Economic Figures
“… this contempt for the public underpins the progressive left’s policy in virtually every area. In a nutshell, people can’t be trusted to do the right thing, hence the need for ever increasing government intervention..”
{mp3}grant/notrust{/mp3}
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The $60 billion implied valuation of the Chinese financial technology group Ant Financial sounds like a case of disruption on steroids.
That price tag, implied by a funding round the company disclosed Tuesday, easily tops the $48 billion market capitalization of the United States payments giant PayPal. But look under a metaphorical microscope, and it’s clear that these are different species. The pumped-up Ant Financial rests on uniquely Chinese characteristics… CLICK HERE for the complete article
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