What to Expect After the U.S. Midterm Elections?

November 7 2018

The results of the U.S. midterm elections are final. Yesterday, on November 6, American voters went to the ballot box to cast their votes for Congress. The Republican party kept a majority in the Senate (governors were elected in 46 states) but lost its majority power in the House of Representatives. What will the consequences be for Trump and the Republican party, now that the Democrats have gained some control over public policy?

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Olav Dirkmaat

Recent Stock Market Weakness Persists

October 29 2018

The recent collapse in stock prices appears to persist. After an apparent recovery of stock prices last Thursday and yesterday, new data (quarterly earnings) was announced. Among others, internet companies such as Alphabet (Google) and Amazon reported their quarterly numbers. Alphabet fell after announcing its quarterly data by almost 5 percent in after-hours, whereas Amazon fell 8 percent due to disappointing sales growth. In addition, the other members of the so-called FANG group (Facebook

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Olav Dirkmaat

Central Banks Print Money, Cause Inflation and Gold Prices Rise, Right?

October 23 2018

Well, according to many investors in gold, at least in theory. The central bank prints money, inflation goes up, and gold prices – as an inflation hedge per excellence – go up as well. This seemingly simple logic appears to hold some truth but is – unfortunately – entirely wrong. What is

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Olav Dirkmaat

Stocks Dropped 5 Percent: What Happened?

October 17 2018

The Dow Jones index suffered a steep decline last Tuesday. At the end of the week, stock markets closed at about five percent lower than at the start of October (yesterday, stocks have recovered a bit). Gold, in response to this recent stock market decline, rose by more than two percent, to a level exceeding $1,200 dollar per troy ounce. What is going on?

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Olav Dirkmaat

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