Ed Moya – Investors Acceptance Of Higher For Longer Interest Rates Is Taking A Toll On Most Markets

Ed Moya, Senior Market Analyst at OANDA, joins us to take a look at how the surging interest rates and King Dollar are continuing to pressure most market sectors.   We start off reviewing the continued sell off in the bonds, spiking both the 2-year and 10-year yields, as the market prepares for at least one more hike, and now the possibility of several more hikes as the Fed postures to keep fighting stickier inflation. 


This leads to a discussion of whether all this monetary tightening will eventually lead to a contraction in the economy and recession.  Ed notes that some investors are starting to consider taking a more defensive approach incorporating more consumer staples, utilities, and value stocks into their portfolios, but that there hasn’t been a solid move into a purely defensive strategy yet overall.  We also point out that with all this market uncertainty, the odd environment where neither bonds or gold are being purchased as safe havens, but instead many are just continuing to pile into the US dollar for the favorable spread versus other currencies.




Click here to visit the OANDA website and follow along with Ed’s daily market note.

    Oct 03, 2023 03:04 AM

    Precious Metals Hammered As Treasury Yield-Curve Steepens And US Dollar Becomes A Crowded Long

    Robert Sinn – Goldfinger Capital – Oct 1st, 2023

    01:01 Barron’s Cover
    02:20 Thoughts on this Friday’s non-farm payrolls numbers
    02:55 Major equity indices, so far it’s a standard correction.
    04:45 Big uptick in bearish equity market sentiment in the last couple weeks.
    05:15 Treasury yield-curve and the bearish steepening since the September 20th FOMC
    07:55 Overall equity market take heading into next week and key levels for next week.
    11:30 Contradictory signals from policy makers and the challenge of meeting the Fed’s inflation target while engineering the green transition.
    15:00 Gold’s $100/oz drop since the September 20th FOMC and my observations of last week’s metals drubbing.
    19:30 Pfizer weekly chart
    21:30 Energy sector charts (uranium)
    22:20 Natural gas chart/fundamentals
    28:55 Three natural gas stock ideas
    32:20 EUR/USD potential inflection point with extreme overbullish sentiment on the US dollar
    33:34 Gold and silver chart analysis
    43:00 GDX and gold mining sector commentary
    45:30 MindMed
    47:10 A potentially brutal tax loss selling season in the mining sector approaches and some individual stock ideas.
    59:00 Aston Bay commentary and some takeaways from the rollercoaster ride of the last two months.

      Oct 03, 2023 03:03 PM

      These markets are stupid, we are headed for a business depression which will involve further liquidation in stocks. Stocks are passing from the smart hands to the dumb hands. DT

    Oct 03, 2023 03:29 AM

    ‘A devastating financial blow’: California’s so-called ‘draconian’ fast-food bill is now law — why a McDonald’s franchisee group says it’ll cost small business owners $250K a year

    Bethan Moorcraft – MoneyWise – Mon, October 2, 2023

      Oct 03, 2023 03:21 AM

      In this era of “false data”, how can a State Gov. decide whether to raise the minimum pay. It may be appropriate to charge The Fed and Congress for pay raises … only the people working at The Fed and elected to Congress should pay out of personal funds. Now I could see where there would be opposition but it possibly directs responsibility for inflation and disparate salaries more appropriately. Tough problem when corruption is the National Economic Agenda.
      Added: John Williams of Shadow Stats has inflation much higher so the minimum wage would still be too low for Fast Food places. I guess eat salads is the answer.

    Oct 03, 2023 03:40 AM

    My account is showing a large percentage of miners (40%) with no activity. That usually means the buying pressure outweighs their ability to neutralize the overall account to a zero gain/loss. We will see how slowly they fully report and when my account goes red.
    Went red in less than a minute by merely taking Theralase from a 17% gain to a 4% as well as hitting Surge Metals. Surge has had some wild swings lately between Canadian trading houses. Games.

      Oct 03, 2023 03:03 AM

      OK… most stocks shown as reporting and account at + $120. Alright, they did it. Pretty much another “zero moment”.