Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Hyperinflation in Zimbabwe – It’s back, but maybe not for long
By: JP Koning

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Gold's Interesting Day
By: Rick Ackerman

Asian Metals Market Update: November-20-2017
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Williams and Louis Navellier, and your host Chris Waltzek
By: radio.GoldSeek.com

Gold Market Update
By: Clive Maund

Technical Scoop - Weekend Update Nov 19
By: David Chapman

Zero Hedge invites Financial Times to heed GATA's urging on gold suppression
By: Chris Powell

The Great Retirement Con
By: Adam Taggart

Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom
By: Gary Tanashian

 
Search

GoldSeek Web

 
Wall Street May Yet Take Ukraine Seriously

By: Rick Ackerman, Rick's Picks

 -- Published: Monday, 17 March 2014 | Print  | Disqus 

Although Russia’s brazen move to annex Crimea has the potential to dramatically alter the economic and political landscape of Europe, we’d initially assumed it would elicit only a fleeting yawn from Wall Street. After all, U.S. investors have proven time and again over the last five years that the only news they even remotely care about is whatever drivel happens to be emerging from the pie hole of the Federal Reserve chairman. Now we’re not so sure. Recently, investors seem to have grown schizophrenic. Recall that exactly two weeks ago, the Dow rallied 250 points to begin a new week even though there was no news to suggest Putin would back down. The blue chip index held onto most of that gain until last Thursday, when it dove 300 points. Little had changed in the intervening weeks. Europe and the U.S. were still at a verbal impasse with Putin, who showed no sign of budging, and Crimea itself seemed eager to accede.

Stocks Could Struggle

Now, with Crimea’s vote over the weekend to join Russia, will the U.S. stock market keep its cool? We’d bet against it, even though our technical forecast implies that a 1500-point rally in the Dow Industrials will unfold within the year. It’s too early to throw in the towel on that prediction, especially since last week’s slide barely dented the bullishness of the Dow’s long-term chart. But in the weeks and perhaps even months ahead, we wouldn’t be surprised if U.S. investors show uncharacteristic concern about events in Europe, especially if “Crimea fever” begins to spread to the Balkans and elsewhere . Meanwhile, although probably not one hedge fund manager in ten could locate Ukraine on a map, they’re going to be hearing quite a bit more about the region than they’d care to for the foreseeable future.

A Botched Response?

Nor will it be freedom, capitalism, human dignity, democracy and such that they’ll be worried about; rather, it will be the risk of a botched response by the U.S. and Europe that could provoke Putin to use economic weapons of his own. Not that he’s capable of undermining the dollar all by himself, as he has threatened to do in the past. But he has allies of his own, and they are undoubtedly eager to break the greenback’s monopoly status as a global reserve currency. This may be wishful thinking in a world where the dollar is the only currency deep enough and liquid enough to lubricate global commerce and a quadrillion-dollar financial shell game. But even mere threats by Putin against the financial status quo could rattle the world’s bourses, especially since their spectacular rise since 2009 has been achieved with flimsy financial tricks and fatally misplaced confidence. [Late note: It is midnight Sunday, and the S&P index futures were trading within a point of unchanged after having been down the equivalent of nearly 100 Dow points.]


| Digg This Article
 -- Published: Monday, 17 March 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.