Yesterday the U.S. Federal Reserve released the minutes from its Federal Open Market Committee’s July meeting. Upon reading those notes, analysts detected a more hawkish tone coming from the central bankers. The key takeaway was that Fed officials “noted that if convergence toward the committee’s objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated.” Read more about Goin’ to Jackson 08-21-14
The selling has extended into today, but the blow has been softened by the July employment report, which adds to the belief that the Federal Reserve will be in no hurry to raise short-term interest rates. While more than 200,000 new jobs were created during the month, the payrolls number came in weaker than expected. Wage growth was likewise less than anticipated.
Stocks were overbought and in need of a correction. Further downward pressure shouldn’t be rule out in the short-term. Still, it’s far too soon to say this is the start of a major correct. Instead, the current dip should prove to be a decent buying opportunity. Inside this issue we look further into recent events and where we’re headed. Read more about A Breather for the Market
Just a few weeks ago investors were fretting about another downturn in Europe’s economy. We, on the other hand, argued that it was far too soon to begin writing off the continent. Sure enough, we’ve since been treated to new data that supports our bullish case. Read more about A Clean Bill of Health 07-24-14
The tragic downing of Flight MH-17 over Ukraine yesterday shook markets and heightens tensions in Europe. Our thoughts and prayers go out to the victims’ families. Still, we must note that the event should have no lasting effect on stocks.
Last month we laid out the bullish case for silver as both a store of value and its central role in photovoltaic solar power. This issue we are increasing our exposure to the metal by swapping out of the one silver recommendation for another that offers greater leverage while avoiding the operational risks faced by silver miners.
We also look at developments in Chile that stand to lead to sharply higher prices for copper, and provide an update on our copper plays. Read more about One Silver Play for Another