The majority of market observers presently consider it a foregone conclusion that the Fed will raise interest rates by 25 bps in December and arrive at a base rate of 1.25% to 1.50%. At the same time QT (Quantitative Tapering) is supposed to be progressing at US$ 10 billion monthly. More rate hikes are expected in 2018. As in the past such a Fed policy will probably result in a recession as higher interest rates and tightened credit will slow down growth.
Investors are now very familiar with ETFs, the acronym for exchange traded funds. Seventeen years have passed since the first European exchanges, including SIX Swiss Exchange, launched the corresponding trading segments. Since that time, ETFs have become quite a success, and the Swiss stock exchange’s ETF segment is adding another chapter to this success story this year.
Unfortunately, neither existence of a rising wedge formation, nor the weekly R1 or the 50% Fibonacci retracement level stopped the rate from breaking to the top.
However, this does not automatically mean dissolution of the pattern, as it still stay in force by making readjustment of the boundaries. Regardless of existence of the figure, in order to continue moving upwards, the pair will need to cross strong resistance zone located between the 112.62 and 12.70 marks.
When Morris Chang set up Taiwan Semiconductor Manufacturing Co (TSMC) back in 1987, it was only two years after Microsoft had started shipping copies of its Windows operating system around the world, and a year before the first internet worm (similar to a virus) would infect a modest 6,000 computers.
Both GOLD and BITCOINS, and the other CRYPTOCURRENCIES, are instruments completely free from the control of the central banks, and are therefore a natural diversification from the impacts that can be generated by the unconventional manoeuvres of the central banks.
There are now over 1,000 cryptocurrencies that have made their appearance, and the number will probably increase just as the number of apps has reached great heights. The Dutch tulip mania bubble of 1637 may be topped by the cryptocurrency craze.
While the stock market seems to be hiccupping and frightening the bulls, the turmoil in Saudi Arabia has attracted the notice of the financial world because the agreement between Saudi Arabia and the US regarding the use of the dollar as the preferred currency for oil transactions may be coming to an end or at least about to be changed significantly. The rapprochement with China and Russia has received widespread publicity, and MBS, the Crown Prince, is bent on bringing change and progress to the Kingdom. Allowing women to drive provided that they are accompanied by a family member is revolutionary for the Middle East country. One can therefore assume that MBS is serious about his undertaking to bring the future closer and establish a new modern city in the desert.
The hurricane season in the Atlantic and other natural disasters serve as a sobering reminder of the devastation that can be wrought by severe weather events. The humanitarian and socio-economic impact can last from months to years.
