Who knows what will trigger Fed intervention; that information is asymmetric, i.e. only known to Fed insiders. The latest PCE inflation numbers may have given dollar bulls cause for concern, but central banks are forward looking, and with base effects due to kick in big time early next year, thereby boosting headline CPI and PCE inflation towards 2%, below target inflation will be relegated to a 2015 story. Travel firm Thomas Cook was the best performer on the STOXX 600 with shares up over 10%, after it swung to full-year profit for the first time since 2015 and said it was confident in 2016 as it was seeing strong holiday demand.
Elsewhere, Anglo American shares tumbled close to 8% to the bottom of indices after HSBC and Goldman Sachs cut their price target for the stock. Gold futures for February delivery dropped 0.3% to settle at $1,069.70 an ounce on the Comex in New York. That’s the highest settlement since November 11. The volume of all futures traded was 19% below the 100-day average. Brent for January settlement advanced $0.05 to end the session at $46.17/barrel on the London-based ICE Futures Europe exchange. Iron ore futures climbed 2% on Wednesday, recovering from steep losses that sent prices to a record low as a struggling Chinese steel market dimmed the demand outlook for the raw material.
Shanghai steel futures rose as much as 4% but had surrendered most of it at the close, reflecting investors’ caution towards Chinese consumption as a slowing economy cuts demand. It was mildly positive but it was ignored by a market planning its early holiday escape. An online simulation of the global capital markets that engages students grades 4-12 in the world of economics, investing and personal finance and that has prepared 15 million students for financially independent futures. A national essay competition that serves as a culminating activity for Stock Market Game students and is sponsored by McGraw Hill Financial.
Sync with standard SMG portfolios’ current Account Summary, Pending Transactions, Transaction Notes, and market news information. The most influential U.S. stock index hit an all-time high on Monday, topping the 2,000 mark for the first time ever. Any Stock Market Crash will be due to the underlying cause, that enforcing frauds drives the political economy to become increasingly psychotic, in the sense that that the falseness of those frauds becomes more and more out of touch with relatively objective realities. Right now, the trade to create losers is blasting through the 2015 highs set in June.
This has worked fine thus far… but eventually it will fail, just as all market props do. The Fed cannot end the business cycle nor can it push stocks up indefinitely. Gauging when this will happen is impossible as we are now talking about crowd psychology, not market fundamentals or economic data (neither of which have mattered for over five years). When the money pumped into the stock market leaks out into the real economy, they’re done. While this is below the average returns of 10% over the last 50 years, asset allocation is a zero-sum game.