Why Investment Bubbles Form

Why Investment Bubbles Form

A lot of people are talking about a top or a crash on the horizon. Most bull markets end in a Euphoria phase. This phase is not really impacted by fundamentals or political events. Bubbles are about emotions. Granted the central banks are a contributing factor. Their...
Dollar Strengthens – Peso Weakens

Dollar Strengthens – Peso Weakens

This chart, courtesy of Bloomberg, shows the market’s reaction to the Fed’s decision to reverse its quantitative easing policy. The Federal Reserve took the first tentative steps Wednesday to unwind its history-making economic stimulus. As markets...
Updates – Peso and Stock Market

Updates – Peso and Stock Market

The U.S. dollar bounced off its two-year low on Monday. It’s too early to determine if this rally has some staying power. The dollar’s move appears to have weakened the Mexican Peso. The peso is currently stuck in a trading range between 17.5 and 18. Right...
Changing Expectations

Changing Expectations

Last week I mentioned the possibility of an intermediate cycle low for the stock markets. It appears as though that has been put off.  An intermediate cycle low on average lasts roughly 18-25 weeks. However, during periods of quantitative easing it’s not unusual to...

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