Trading

Typically, there is an inverse correlation between the value of the dollar and that of gold. When the dollar loses purchasing power, then the value of other currencies increases and so the demand for commodities. The investors look for alternatives to protect value: gold, a typical safe haven, is a preferred choice.

Not always the inverse relationship is true. There have been times when both assets have risen or fallen together. Many factors drive the U.S. dollar’s trends, like monetary policy, U.S. inflation, economic prospects. Nevertheless, the correlation coefficient calculated between the returns of the U.S. Dollar Index and the price of gold sticks, most of the times, around negative values.

When charted, bitcoin’s rapid gains resemble how stocks surged into the tech bubble before collapsing. CNBC has talked to Informa Financial Intelligence strategist David Ader who reckons the five-fold rise in the price of Bitcoin this year is a little over the top:
"This is the price chart for an overly frothy market, in my opinion. I just don’t see anything quite as comparable to this in bubblelicious terms," said Ader, a former top-rated bond market strategist.

American billionaire Warren Buffett’s Berkshire Hathaway group has officially become the top shareholder in Bank of America after exercising its right to buy 700 million shares at a discount.

Buffett had received the warrants in 2011 after investing $5 billion in the bank, which was suffering at the time from the fallout from the global financial crisis.

Litecoin, the fifth-largest cryptocurrency by value and rival to bitcoin, has rallied nearly 1,400 percent since the start of the year after hitting a record high price.

On Monday, litecoin hit an all-time high of $64.2, marking a 1383% rise since January first where it traded at $4.33, data from industry website Coinmarketcap.com showed. The price pulled back slightly on Tuesday and was just above $62 in early trade.

Building on the basis of the basic article “Smart traders track” (TRA-DERS’ 04/2017; available in the shop at www.traders-media.de), we introduce a strategy to you in this article that will help you combine obvious trend figures with each other in a clever way. This makes a profitable trading setup.

Whoever wants to trade successfully, should know the individual components (see infobox) as well as the behavior of the individual market players. These leave behind tracks within the chart with their purchases and sells. We want to trade confluent trend figures within a time unit and therefore need to look at the courses of the trends within a time unit. It’s therefor necessary to figure out:

United States authorities on Thursday charged two managers at the French bank Société Générale with taking part in a scheme to manipulate a global benchmark interest rate known as Libor.

As Reuters reported, Danielle Sindzingre, 54, the bank’s former global head of treasury, and her subordinate Muriel Bescond, 49, its former head of treasury in Paris, were accused in an indictment filed in a New York federal court of submitting false information about the rates at which the bank was able to borrow money.

Global dividends hit an all-time quarterly record of $447.5 billion (€380.5 billion) in the second quarter of this year as growth accelerated to the fastest rate since 2015, according to new data.

The Janus Henderson Global Dividend Index revealed that the amount paid out in dividends globally increased 5.4% year-on-year on a headline basis – equivalent to an underlying rise of 7.2% once exchange rates, special dividends and other factors were taken into account. The asset manager raised its dividend forecast for the whole of 2017 to $1.208 trillion, up $50 billion since an initial forecast in January, following evidence of “more synchronised” global economic growth, an oil price rally and a revival in banking sector payouts.

About 60% of stock market transactions are now coming from computers fed with algorithms based on great quantities of data. That may account for the extremely low volatility registered recently as competing algorithms buy and sell, trying to eke out profits from minimum movements in prices. Another factor is the policy of many companies implementing stock buyback programmes that benefit shareholders and reward executives by keeping the shares of the company at ever higher prices even though earnings do not justify the rise in the stock price.