FINANCIAL ADVISOR INSIGHTS: Peter Schiff Warns That The Next Fiscal Cliff Won't Be So Easy To Avoid

FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.

PETER SCHIFF: There's Another Fiscal Cliff That Won't Be So Easy To Avoid (Advisor Perspectives)

"It cannot, or should not, be denied that Washington's latest fig leaf will have a major impact on the markets. The New Year's "relief rally" is understandable given the clear implications that the government will simply print its way out of trouble for as long as it can. …Markets are now driven by stimulus, not fundamentals, and the stimulus is firmly at the wheel. 

In the meantime, President Obama and Congressional leaders will take credit for a tax cut that is in reality a huge tax increase in disguise. Government spending is the real source of taxpayers' pain and it is only a matter of time before the bill comes due in the form of inflation. See our Newsletter for fresh analysis as to why inflation may already be higher than you think.  Because the deficits will grow even larger, more purchasing power will be lost in this manner than would have been lost had all the Bush tax cuts been allowed to expire. In addition, though entitlements cuts were taken off the table, the real value of benefits could be slashed, as cost of living adjustments fail to keep up with skyrocketing consumer prices.  That's a Fiscal Cliff that will not be so easy to avoid."

Almost All Of Wall Street Got The 2012 Market Calls Wrong (Bloomberg)

A new report from Bloomberg says most of Wall Street got their 2012 market predictions wrong. Among them, John Paulson's call that the euro would fall apart, Morgan Stanley's prediction that the S&P 500 would lose 7 percent, and Goldman Sachs' bullish call on Chinese equities.

GARTMAN: The Gold Bug Thesis Is In Tatters (Business Insider)

After yesterday's FOMC minutes revealed that several members of the Fed wanted to end QE3 by 2013, Dennis Gartman, publisher of The Gartman Letter wrote that gold bugs were seeing their thesis in tatters.

"Commodity prices are falling and in some instances are falling quite sharply. Clearly that is the case with gold, for the minutes of the FOMC’s last meeting have shaken the hopes of the most violent “Gold Bugs” malevolently, and have shaken our gold position rather materially. We are, however, rather nicely insulated from the real damage being done to the simplistic gold bugs who have owned and who still own gold predicated upon their thesis that the Fed has lost control of the money supply. That thesis is now in tatters... or at least has been very badly torn in the past twenty four hours... following the single sentence from the Fed’s minutes noted at length above.

…The game has changed for gold if we are to believe the minutes of the FOMC meeting, and at the moment we’ve no choice but to believe them. The only hope for the gold/US$ bulls is that the newly constituted FOMC shall be more dovish than was the FOMC as constituted last year. That case can be made, but only at the margin. We shall accept the FOMC of ’13 as more dovish than was that of ’12, but only marginally so; not materially so."

The Scariest Jobs Chart Ever (Calculated Risk)

The jobs report this morning showed that the U.S. economy added 155,000 jobs and the unemployment rate ticked higher to 7.8 percent. Bill McBride at Calculated Risk wrote "This shows the depth of the recent employment recession - worse than any other post-war recession - and the relatively slow recovery due to the lingering effects of the housing bust and financial crisis."


Small Transgressions Can Cost Brokers Big
(The Wall Street Journal)

Recent disciplinary actions against brokers have shown that even tiny infractions and false reimbursement requests can cost them their jobs and bar them from the industry. Two such cases involve Hartford Life Distributors LLC. and Bank of America Merrill Lynch.

Jim O'Neill Thinks The Post-2008 'Risk On/Risk Off' Trade Is Finally Reversing (Viewpoints)

"There are a number of growing hints that the post-2008 environment of “risk on/risk off” with very strong cross-asset-class correlations is reversing. If this were true, it should be really good for specific investors who can concentrate on their asset class and not worry so much about extraneous forces. I had already touched on this a number of times during 2012, not least because smart investors should try to anticipate these trends reversing before the masses. But now, the evidence is accumulating.

It is at its most apparent in the foreign exchange market, with the dramatic decline of the Yen since mid- November, which is clearly a function of the incoming LDP leader Abe planning for a more activist set of policies. Many sell-side commentators are still focused on the two-year US-Japan interest rate differential in following the Yen, which worked so well since 2008, but – at least for now – has clearly broken down. I would remind people that over a longer period – in fact, since the early days of floating – there is very little statistical evidence that US-Japanese interest rate differentials are that crucial for USD/JPY."



More From Business Insider

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • US stocks flat as oil shares pressured AFP - 7 minutes ago

    Petroleum-linked shares retreated Wednesday ahead of a US oil inventory report as Wall Street stocks opened little-changed in sluggish trade. Shares of Dow members ExxonMobil and Chevron dipped with oil ... … More »

  • Markets Right Now: US stocks open lower Associated Press - 7 minutes ago

    The latest on developments in global financial markets (all times local): 9:35 a.m. Stocks are opening slightly lower on Wall Street as the market gives back a modest gain from the day before. Mining and ... … More »

  • Wall Street opens little changed as investors eye Fed
    Wall Street opens little changed as investors eye Fed Reuters - 17 minutes ago

    REUTERS - U.S. stocks were little changed at the open on Wednesday as investors kept up their wait for Federal Reserve Chair Janet Yellen's speech on Friday for clues on the timing of an interest rate ... … More »

  • Iran yet to decide on OPEC limits: ministry source AFP - 28 minutes ago

    Iran has yet to take any decision on whether to set a ceiling on oil production or take part in a planned OPEC meeting in Algeria, an oil ministry source told AFP Wednesday. "It is too early to talk ... … More »

  • Cnooc Posts 1st Half-Year Loss on Canadian Oil Sands Charge (3) Bloomberg - 52 minutes ago

    Prices have whipsawed this year, flipping five times between bear and bull markets, as production from nations outside the Organization of Petroleum Exporting Countries, including China and the U.S., declines in the wake of a price crash that began … More »

  • EU warns Greece statistics row 'dangerous' for bailout Reuters - 1 hour 17 minutes ago

    BRUSSELS/ATHENS (Reuters) - The European Union called on Greece on Wednesday to quash what Brussels said were false accusations the Greek statistics agency rigged data to help foreign creditors and warned that the row posed risks to Athens' current … More »

  • Glencore’s Worst Profit Shows Miners Still Reeling From Crisis Bloomberg - 1 hour 18 minutes ago

    Weak raw-material prices caused profit at the commodities giant to plunge 66 percent in the first half to $300 million. The shares slumped as much as 6 percent in London, the most in two months, even as Glencore promised to cut debt even further … More »

  • New trade deal with Britain may take time, Norwegian minister says Reuters - 1 hour 42 minutes ago

    Norway wants to maintain a good relationship with Britain after it leaves the European Union but it may take a long time for a new trade agreement to be established, the EU affairs minister in Oslo said on Wednesday. Elisabeth Aspaker told a … More »

  • Qatari state fund buys stake in NY's Empire State Building
    Qatari state fund buys stake in NY's Empire State Building Associated Press - 1 hour 43 minutes ago

    Qatar's sovereign wealth fund has made an iconic purchase in America — a stake in the company that owns New York's Empire State Building. The $622-million purchase by the Qatar Investment Authority comes ... … More »

  • European stocks rebound as euro slips, U.S. curve flattens
    European stocks rebound as euro slips, U.S. curve flattens Reuters - 1 hour 47 minutes ago

    European stocks edged towards consecutive daily gains for the first time in three weeks on Wednesday, drawing support from a weak euro as investors moved to price in a U.S. interest rate rise, boosting the dollar. The earlier mood was more … More »

  • WPP sees signs of post-Brexit recovery in British ad market
    WPP sees signs of post-Brexit recovery in British ad market Reuters - 1 hour 50 minutes ago

    WPP (WPP.L), the world's largest advertising group, reported a better than expected jump in first-half net sales and said its British operations showed signs in July of a "post-Brexit recovery", sending its shares to a record high. Run by … More »

  • Gold steady as investors await U.S. rate clues
    Gold steady as investors await U.S. rate clues Reuters - 1 hour 51 minutes ago

    Gold held steady on Wednesday as investors took to the sidelines ahead of a speech by Federal Reserve Chair Janet Yellen this weekend which will be closely watched for further clues on U.S. interest rate policy. Yellen is scheduled to address a … More »

  • Exclusive - German ratings firm Scope seeks ECB recognition Reuters - 1 hour 51 minutes ago

    German rating firm Scope says it is in talks to become one of the European Central Bank's recognised sovereign credit agencies, though tough requirements mean the process could take at least three years. Scope would become the first agency based in … More »

  • Oil prices drop as market tracks US supplies AFP - 1 hour 52 minutes ago

    Oil prices fell Wednesday, with Brent stuck below $50, after data showed an increase in US crude stockpiles, adding to supply glut concerns. Data from the American Petroleum Institute (API) Tuesday showed ... … More »

  • U.S. oil falls 2 percent on surprise build in crude stocks
    U.S. oil falls 2 percent on surprise build in crude stocks Reuters - 1 hour 56 minutes ago

    U.S. oil prices fell more than 2 percent on Wednesday on an unexpected increase in U.S. crude stocks that revived worries about the supply glut that has capped prices for the past two years. Industry data from the American Petroleum Institute (API) … More »

  • U.S. oil falls 2 pct on surprise build in crude stocks
    U.S. oil falls 2 pct on surprise build in crude stocks Reuters - 2 hours 2 minutes ago

    U.S. oil prices fell more than 2 percent on Wednesday on an unexpected increase in U.S. crude stocks that revived worries about the supply glut that has capped prices for the past two years. Industry data from the American Petroleum Institute (API) … More »

  • Buba's Dombret says eyes LSE-Deutsche Boerse merger with some concern Reuters - 2 hours 21 minutes ago

    Bundesbank board member Andreas Dombret said he was concerned the planned $29 billion (21.89 billion pounds) merger between German exchange operator Deutsche Boerse and the London Stock Exchange may raise systemic risks in derivatives clearing. … More »

  • PetroChina profit almost wiped out in first half
    PetroChina profit almost wiped out in first half AFP News - 2 hours 26 minutes ago

    China’s biggest oil producer PetroChina's net profit plunged 97.9 percent in the first half of this year, it said Wednesday, as it struggled with a weak domestic economy and low oil prices. Net profit was 531 million yuan ($79.9 million) in the … More »

  • European equities mainly rise on German GDP
    European equities mainly rise on German GDP AFP News - 2 hours 28 minutes ago

    European stock markets mostly rose on Wednesday, shrugging off a largely downbeat session in Asia, with sentiment partly lifted by German economic growth data. Strong foreign trade and buoyant consumption drove Germany's economy, Europe's largest, … More »

  • Malaysian oil service provider Perisai in talks with bondholders Reuters - 2 hours 35 minutes ago

    Malaysian oil and gas service provider Perisai Petroleum Teknologi on Wednesday said it has started talks with holders of its S$125 million ($92.36 million) bond maturing on Oct. 3. Perisai said its interest cover ratio had fallen below the … More »

  • Angry Birds maker Rovio turns a profit, plans movie sequel
    Angry Birds maker Rovio turns a profit, plans movie sequel Reuters - 2 hours 36 minutes ago

    Finnish mobile game and animation maker Rovio Entertainment Ltd said on Wednesday it made a profit in the first half of the year and was planning a sequel to its successful Angry Birds Movie. Rovio's adjusted operating profit in the first six … More »

  • Philippines' Duterte says willing to allow online gambling resumption Reuters - 2 hours 38 minutes ago

    Philippine President Rodrigo Duterte said on Wednesday he's willing to allow a resumption of online gambling in the Southeast Asian nation if correct taxes are paid and gaming parlours are far from schools and churches. The new president added … More »

  • German banks right to charge for accounts - Bundesbank's Dombret Reuters - 2 hours 47 minutes ago

    German banks are right to consider current account fees to counter low central bank rates, but an outright charge on deposits, as pioneered by a few lenders, is unlikely to become common, Bundesbank board member Andreas Dombret told Reuters. While … More »

  • EU, Portugal agree on recapitalisation for bank CGD Reuters - 3 hours ago

    The European Commission said it had reached an agreement in principle with Portugal over the recapitalisation on market terms of Portuguese state-owned bank Caixa Geral de Depositos - the country's largest lender. Under the terms of the deal, … More »

  • EU says Greek debt statistics not manipulated in 2010-2015
    EU says Greek debt statistics not manipulated in 2010-2015 Reuters - 3 hours ago

    The European Union's Employment Commissioner Marianne Thyssen said on Wednesday the Greek statistics office did not manipulate data on the country's debt in 2010-2015 and that she had sent a letter to Athens asking it to refute any such suggestions. … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.1290.0000.00%
    N21.SI
    0.250.00-1.96%
    5ME.SI
    0.60+0.04+6.57%
    5TP.SI
    0.99-0.02-1.98%
    Y92.SI
    0.156+0.007+4.70%
    AFC.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.30+0.06+22.45%
    T18.SI
    0.15+0.02+15.38%
    5TI.SI
    0.225+0.025+12.50%
    Y35.SI
    0.51+0.05+12.09%
    BHU.SI
    0.162+0.017+11.72%
    QS9.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.011-0.115-91.27%
    QF6.SI
    0.23-0.17-42.50%
    AWI.SI
    0.205-0.055-21.15%
    I06.SI
    0.45-0.10-18.18%
    BFK.SI
    0.385-0.085-18.09%
    E8Z.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3543+0.0031+0.23%
    USDSGD=X
    1.5257-0.0013-0.09%
    EURSGD=X
    1.7947+0.012+0.67%
    GBPSGD=X
    74.0930-0.016-0.02%
    SGDJPY=X
    5.7239-0.0116-0.20%
    SGDHKD=X
    2.9829+0.0071+0.24%
    SGDMYR=X
    9,783.5176-33.1865-0.34%
    SGDIDR=X
    4.9142+0.0008+0.02%
    SGDCNY=X
    1.0327+0.0038+0.37%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,332.40-13.70-1.02%
    GCZ16.CMX
    18.62-0.30-1.60%
    SIU16.CMX
    101.18-2.71-2.61%
    ^XAU
    2.10-0.02-0.76%
    HGU16.CMX
    47.57-0.53-1.10%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.13-0.01
    ^FVX
    1.550.00
    ^TNX
    2.240.00
    ^TYX