Monday, April 14, 2014

Economic Journal - Monday, 4/14/2014

(as of 7:10 AM PST)


It is a tentative start to markets this morning.  A strong retail sales report was enough to generate a moderate positive opening.  One gets the feeling that the gain is not going to hold.  Last week’s poor market performance has investors on edge.  Russian aggression in Ukraine is another source of uncertainty for investors.  Pro-Russian activists are looking to carve other parts of that country into sections that would presumably be annexed by Russia, just as Crimea was.  Reactions by the US and Europe have been very weak and seem to be an encouragement for further Russian aggression.  Gold is up moderately while oil is steady.  The US dollar is stronger.  The safe haven status of the US dollar is once again on display with what appears to be a mild flight to safety amidst the uncertainty.  Interest rates continue to be very low, with no evidence of upward pressure.

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