Money and Markets’ newsletter editors sounded off on the most important topics of the week. Below are snippets from the editors and links to their services.
From Charles Goyette’s Wealth and Liberty Alert
“It’s clear to me that deflationary pressures still have the upper hand in Europe. Another flare-up in the EU’s perpetual debt crisis could be very close at hand.
“And the catalyst, or match, that ignites the next stock market blow-up could be EU bank stress tests set to be conducted in the next few months.
“Twenty-seven of Europe’s top 100 banks are in danger of failing the stress test with a total capital shortfall of 17 billion euros, according to one estimate.”
“Indicators show gold to be overbought on a daily basis with the Relative Strength Index (RSI) now above the 70 level.
“Please note … that the last three rallies where gold became overbought led to an average decline of more than $100.”
“I think … that the Fed’s plan is to taper throughout this year but that any rate increases won’t come until next year or perhaps later.
“Now here’s the good news. Yellen’s most significant remark was her saying that assets are not at “worrisome levels.”
” … this was her Valentine’s Day gift to Wall Street. This is also a good example of how events that are not really unexpected can still markedly boost the confidence of the bulls who have been running scared for the past few weeks.”
The Money and Markets Team