Economy

Getting ready for the ‘Fourth Industrial Revolution’

The disruptive technologies have always shaken the status quo of the job markets. The first power looms was built-in 1785, and by the 1850 there was 260,000 power looms in England, and traditional weavers were out of business and work in no time, despite brutal protests! Fast forward to 2018, look at “Workopolis List” of  new jobs in …

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Anatomy of Monetary Policy

To manage ‘national economy‘, the governments execute ‘political maneuverings’ like, Fiscal(Taxes) and Monetary policy (Interest rates), Trade, Revenue Spending and Reforms. Central Banks (Federal Reserve, BOE, ECB, BOJ, RBA, RBI, BOC) are responsible for most of these activities. The Central Banks sets the discount (interest rate banks charge among themselves) and prime interest rates (base interest rate charged to consumers for borrowing money)for lending money in the open market. …

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Forex -Inter market Correlation Analysis

  AUD Australia is 3rd biggest gold producer, sailing out about $5 Billions per year. 80% positively correlated   NZD New Zealand ranks 25th largest producer of gold.   Dollar Index (DXY) during economic unrest, investors dump dollar in favor of gold. Unlike other assets, gold maintains its intrinsic value. USD Negatively correlated versus Gold    USDCHF is Negatively …

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Fed are hiking rate, don’t hold your breath!

The Federal interest rate is inter-bank loan rate AKA  overnight rate, is the cost that  ‘credit unions, savings institutions and commercial banks‘ are charged for borrowing money from Federal Reserve banks. It does not directly affect the stock market itself but it becomes more expensive for banks to borrow money from the Feds, but ripple effects are unstoppable, because …

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