President Donald Trump’s words, actions, and inactions can move the market – the Trump effect already moves stocks, commodities, forex, and the general economy. The Trump effect is understandable based on the fact that Trump wields huge power as the President of the United States. However, the Trump effect is being amplified in the socio-political, economic, and financial landscapes because Trump seems to thrive on controversy.
In the buildup to the 2016 elections, Trump was a constant feature in news headlines for the most controversial statements. During the campaigns, Trump made some ‘unconventional’ promises that the mass media, his critics, and political elites often dismissed as the ramblings of someone that doesn’t understand the workings of government. However, since taking the Oath of Office on January 20, Trump has set in motion the mechanisms to actualize many of his campaign promises.
Now, economists are scared that Trump could usher in a wave of uncertainty of epic proportions in the global economic and geopolitical landscapes. This post provides insights into some of the reasons economist are worried about how the global economy might fare under Trump.
A rising interest rate environment could be difficult for some bond investors. Assuming everything else remains stagnant, when interest rates rise, bond prices tend to fall, and the opposite is true. Consequently, a bond exchange-traded fund (ETF) or bond portfolios could experience volatility when interest rates are moving. On February 14, 2017, U.S. Treasury ETFs, such as the iShares 20+ Year Treasury Bond ETF (TLT) fell due to Federal Reserve Chair Janet Yellen’s comments in her speech, indicating that the Federal Open Market Committee (FOMC) was open to interest rate hikes.
According to Fed Chair Yellen, “At our upcoming meetings, the Committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.” (more…)
Bitcoin has proved out to be a very good portfolio asset owing to its high returns and acceptable volatility. After thorough study, a Sherman Oaks, CA based firm have come up with a unique and viable retirement investment strategy. This involves using Bitcoin in Investment Retirement Accounts.Its growing adoption has boosted its application in various streams and not so surprisingly people have accepted Bitcoin as a part of their IRA. Bitcoin IRA crossed $4 Million mark last week in sales and launched “Bitcoin Bull Watch”, a weekly report on Bitcoin market insights. On this occasion, Chris Kline, COO of Bitcoin IRA and Director of Operations at Fortress Gold Group featured in an interview on CrushTheStreet
Apart from the visible factors, there were other global drivers of adoption that helped the cause. Let’s dive into what we believe are two major factors that pulled in the volumes
The global markets slumped on January 12, 2017 after a news conference by President-elect Donald Trump. Assets declined across the globe with European, Asian shares and S&P 500 futures all falling, while the dollar slumped against most currencies. The conference disappointed the institutional investors with reveals to very little details as to economic and trade plans. This element of uncertainty resulted in a major slump in US dollar trading after recovering from a three week low. Surprisingly even after so much market commotion …
China’s financial regulators are reportedly seeking opinions on how to regulate the trading of bitcoin and have contacted the exchanges on the same. One of the proposed methods may include setting up a depository platform. Chinese exchange BTCC – one of three leading bitcoin trading platforms spoke to by the People’s Bank of China last Friday.
Bitcoin market has always followed the standard rule of currency markets: market trades all the regions adequately before moving to higher levels. It is very important to keep this in mind as market has always come back to trade low volume regions before resuming the Bull Run. This was evident when market went from $700 to $800 level and crashed back to compensate the lack of volumes.
Bitcoin is shaping up to be the unofficial legal tender in Venezuela as the country continues to suffer the effects of hyperinflation in its currency. Venezuela has become a shadow of its former self as the once prosperous oil-rich country now struggles to provide citizens with the most basic needs of life. The global crash in oil prices dealt a tragic blow on the country’s economy – its foreign reserves had $43B in 2009 but it has less than $11B now.
‘Borderless’, ‘Peer to Peer’ and ‘Low transactional charges’- prime attributes of Bitcoin that has made its adoption conceivable. Interestingly these are the factors that helped the cryptocurrency to find its place in the remittances industry.