Gold appears to be reaching some recent highs and this could be indicating a shift of funds to safe haven assets. The move has not come quickly as gold has slowly begun to creep up rather than a large swing to the upside. Not only that, you have to take a look at the US Dollar as the value has been decreasing. There could be several reasons for this, but that can impact areas such as oil and agriculture.
Inflation is another macroeconomic agenda item that is being talked about because the inflation rate is unable to creep up as the Fed wants. Typically inflation should be close to two percent. Also, the Federal Reserve is looking to end the bond-buying program and slowly release these back into the market.
There would appear to be at least one more interest rate rise near the end of the year, particularly in December. What this means are loans are going to cost more, but on the positive, your investments in bonds are going to hopefully gain a higher return as the interest rates increase.
All in all, the market appears to going ahead well and this means investors are still in a bearish mood. However, there appears to be some reasons for concerns with the falling dollar and rising gold prices. Keep an eye on your current portfolio and see if you may want to take some gains off the table and restructure. Typically, a portfolio should be looked at annually or semiannually.
What to watch ahead would be the VIX, which measures the fear in the market. Ensure that is on level with current market sediment and if it begins to rise, take note. Also, keep an eye on geopolitical issues because they seem to be creeping into the market and having a larger affect than before. Lastly, with the impact of the most recent hurricane in Houston, watch the oil market and futures market for swings.
Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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