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Nightmare on Wall Street Was All About Liquidity

(Bloomberg) — Ian Burdette stared at his computer screens on Thursday afternoon in New York and could hardly believe his eyes. Everywhere that the head of term-rates trading at Academy Securities Inc. looked, there were massive anomalies and signs of unprecedented stresses in markets.Ultra Long Term U.S. Treasury Bond Futures, which moved about 1.3 points per day on average in January, were down more than seven points on the day and off 36 points from Monday’s high. Italian sovereign debt had simply imploded. An index of costs to insure corporate debt with credit-default swaps surged the most since Lehman Brothers …read more […]

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How to Invest in Gold in a Volatile Market

Market volatility seems out of control. The markets move a thousand points up or down per day. Gold can be seen as a safe harbor in these turbulent times. But if you don’t know how to invest in gold, we’re here to help.
Gold is a commodity. That means it’s a basic economic good that is completely interchangeable with other instances of the same stuff. Other commodities in the investing market include platinum and other precious metals. Oil. Soybeans. Lumber. And more.
Stocks have been on an incredible run over the last decade. Since February, 2009, the S&P had surged 250%. If …read more […]

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Trump Orders U.S. to Stock Up Oil Reserve After Price Crash

(Bloomberg) — President Donald Trump told U.S. energy officials to purchase “large amounts” of oil to fill up the nation’s emergency reserve after the biggest price crash in a generation.Replenishing the Strategic Petroleum Reserve — as proposed by some oil lobbyists earlier this week in light of the collapse in prices — would enable the government to take as much as 77 million barrels off the world market.Oil prices jumped after Trump’s announcement, paring their worst weekly performance since 2008. Still, the purchases are unlikely to be able to offset the supply boost major producers such as Russia and Saudi …read more […]

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All Clear? Not Just Yet!

Markets closed up today…
But don’t be fooled into thinking this is the all-clear moment when the market will return to form. While yesterday’s actions brought us closer to the bottom than the day before, one headline could change everything. Because of that, the betting is still pointed toward the downside in the days and weeks ahead.
However, with the CBOE Volatility Index (VIX) going absolutely parabolic this week, we may see a little letup in the velocity of the downside moves, meaning the daily massive moves down will start to slow down. So expect more big down days, but not necessarily …read more […]

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Oil’s Worst Week Since 2008 Tempered By Trump’s Vow to Fill SPR

(Bloomberg) — Oil posted the biggest weekly plunge since 2008, capping its most dramatic week in recent memory as major producers prepare to drench the market with supply just as the coronavirus crushes demand. But prices jumped following the close, after President Donald Trump said the U.S. would fill the nation’s strategic reserve.Losses for the week totaled 23% after the collapse of talks between members of the OPEC+ group triggered the biggest crash in a generation. Instead of reaching a deal to cut output to mitigate the fallout from the virus, producers led by Saudi Arabia and Russia embarked on …read more […]

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United Airlines in talks with U.S. officials about financial support

United Airlines confirmed Friday it is in talks with U.S. government officials about possible financial assistance in the middle of a dramatic falloff in travel demand due to the coronavirus outbreak. In an email to employees seen by Reuters, United said its chief executive officer Oscar Munoz “has spent the last two days in Washington, D.C., meeting with senior officials in the Trump Administration and senior members of the U.S. House and Senate in both parties to understand what government policies they may be considering and explain to them the impact that the coronavirus has had on our …read more […]