Economic Outlook

US GDP Growth Rebounds To 3.1% In Q1

Posted by Wayne Duggan

on Thursday, 27 June 2019 9:14

Despite concerns over a slowing global economy and negative impacts of the ongoing trade war with China, the U.S. grew its gross domestic product by 3.1% in the first quarter of 2019, up from just 2.2% growth in the fourth quarter of 2018.

The growth was surprisingly strong given falling economic growth forecasts around the world, a volatile stock market, an ongoing trade war with China and more dovish commentary from the Federal Reserve.

After a fourth-quarter sell-off, the S&P 500 surged more than 14% in the first quarter, one of the strongest starts to a year in history. Concerns over a near-term U.S. recession eased, and economic growth numbers suggest the U.S. economy is on a stronger footing than previously feared….CLICK for complete article

The Latest from the Astute Strategist

Posted by Ahlaam Karim

on Thursday, 27 June 2019 9:09

Astute Strategist’s Founder,  Ahlaam Karim talks about his take on the market, where it could be headed and in particular what he’s looking for in confirming market direction. – ed.

A rally in excess of 200 points in two weeks the S&P 500, new intraday all-time highs and in the end there’s lackluster follow through. This week the S&P 500 settled at 2950 and the Dow at 26,719 even gold came back to life settling above 1400/ounce, it has been a buyers delight. Anyone can tell you just by looking at the chart in the S&P that a run up from 2738 to 2950 in darn out impressive. There is no secret that this market is bullish over the long term, even we here at Astute Strategist are bullish over the long run, so much so that we are even looking at the Dow going around 32,000 in the next year and a bit (possibly earlier).

Now we hear you, well that’s great and wonderful but what about us in the here and now. Well, given that we have maintained weekly closes above our key numbers in the Dow and S&P things are indeed looking on the up and up. There is a slight possibility that we are to see a fake out drop before heading even higher there may even be a fake out move lower, a bounce to test the highs a move make down and then on to higher highs but that is indeed the path we see.  Our eyes are going to be on where we close this week, as it is a weekly, monthly, and quarterly close. In the Dow 26,950 for the week, 26,770 for the month. Closing below 26,155 will indicate that we are for the moment, not ready for a buying frenzy to begin. Since the quarter ends of this Friday’s closing numbers, we are watching 26,615. At the time of this post, we are above most of these levels but we do have a week of trading along with the twitter account of an ever so emotionally stable and truth-telling US president.

Time will tell if we are ready to breakout further to newer and higher highs or if we are still in a consolidation pattern. Either way, as mentioned we are bullish over the longer term time frame and a company such as Apple Inc (AAPL) is a prime example of where we would look at buying on dips and putting monies to work. If the market is set to make newer and higher highs and a stock like AAPL is in bull markets outperforming the market, where would you want to put your hard earned money to work?

Want to learn more about what Astute Strategist can do for you? click here.

Bitcoin Breaks $13,000 As Rally Continues

Posted by Ana Alexandre

on Wednesday, 26 June 2019 9:18

BTC broke the $12,000 level earlier today, and has continued surging to trade at $13,252 at press time. The leading coin has gained over 16% on the day. Today, Bitcoin’s market dominance climbed to over 60% for the first time since April 2017.

Bitcoin’s recent rally has caused a stir in the crypto community, wherein some of its players have made predictions on its further price dynamics. Today, eToro analyst Simon Peters claimed that BTC prices could match their all-time high of $20,000 within the next two weeks — and could hit $50,000 or $100,000 by the end of the year….CLICK for complete article

VCs Are Pouring Billions Into Cannabis As Legalization Looms

Posted by Alex Kimani

on Wednesday, 26 June 2019 9:11

With marijuana still classified as a Schedule I drug by the U.S. federal government, few institutional investors have been willing to write checks to cannabis companies. Despite the barriers, this hasn’t stopped the rise of a new clique of sector-specific firms that have a deep understanding of the nuances and challenges of investing in such a highly regulated and fragmented market.

The value of venture deals in the cannabis space has really taken off over the past few years, from a couple of hundred thousand bucks to billions of dollars currently.

PitchBook Data, a SaaS company that delivers data for private capital markets, started keeping tabs on the marijuana industry in 2012. Back then, the sector only recorded two VC deals worth a combined $300,000.

Fast forward to 2017 and venture capital funds flowing had multiplied more than a hundredfold to $378 million. A year later, the sector reached an important milestone with VC deals hitting the $1-billion mark….CLICK for complete article

The Golden Asteroid Worth $700 Quintillion

Posted by Joao Peixe

on Wednesday, 26 June 2019 8:28

Whether it was the Big Bang, Midas or God himself, we don’t really need to unlock the mystery of the origins of gold when we’ve already identified an asteroid worth $700 quintillion in precious heavy metals.

If anything launches this metals mining space race, it will be this asteroid–Psyche 16, taking up residence between Mars and Jupiter and carrying around enough heavy metals to net every single person on the planet close to a trillion dollars.

NASA plans to do just that, beginning in 2022.

Of course, says veteran miner Scott Moore, CEO of EuroSun Mining  “The ‘Titans of Gold’ now control hundreds of the best-producing properties around the world, but the 4-5 million ounces of gold they bring to the market every year pales in comparison to the conquests available in space.” CLICK for complete article