Toggle

Trump won’t sign spending bill…market falls AGAIN!

Trump won’t sign spending bill..markets fall AGAIN!!!—12/20/2018

Year-end historically means the Santa Claus rally. NOT THIS YEAR!!!!

Fed Chair Powell ruined the party yesterday and now Trump and Congress are taking it to another level with their fight over border security and the spending bill. Trump wants his wall to be built and won’t sign the spending bill unless he gets it. The government needs the spending bill to remain open.

Long story short…it looks like the government is going to be shut down sometime soon, unless these people can get their act together.

Fed Chair Proves his Ignorance

 Fed Chair Proves His Ignorance—12/19/2018

The Fed raised rates today, as expected, and had a slightly more dovish tone regarding their ideas on future interest rates hikes. However during Fed Chair Powell’s press conference, he proved his ignorance about the market’s main concern; the reduction of the Fed’s balance sheet.

The Fed is reducing it’s balance sheet by $50 billion per month. No one is discussing this, but I believe it is the main reason for the market’s downward trajectory. This reduction is a de facto tightening of monetary conditions and is slowing the economy down. This, combined with the Fed raising rates, is a double whammy for slowing the economy.

As I watch the Fed Chair speak, every question he answers concerning the reduction of the balance sheet sends the market lower and lower and lower. He is literally clueless about the major impact this is having. He makes comments like, “its going smoothly” or “it has very little impact.” The fact that these answers push the market lower by 100 points a question, tell me otherwise.

He is the most powerful banker in the world. I sincerely hope he comes to grips with the impact the “quantitative tightening” is having on the economy very soon.

Trump and Xi meet

Over the weekend, at the G-20 meeting, President’s Trump and Xi meet to discuss the trade tensions/Trade War between the U.S. and China. The gist of the meeting was that the Trade War will take a pause for 90 days. The world financial markets are hoping that these two leaders can come to a longer-term agreement during that time frame and these trade tensions will de-escalate.

Powell turns less hawkish

 Powell Turns Less Hawkish—-11/28/2018

Fed Chair Powell gave a speech in which he said that interest rates are closer to neutral rather than still accomodative. This has eased the markets concerns that he was going to keep the hammer down and raise rates indefinitely, which would run the risk of destroying the economy. As I type this, the Dow is up over 500 points today.

https://www.cnbc.com/2018/11/28/stock-market-wall-street-looks-to-fed-chair-speech-and-trade-news.html

Markets continuing to be Jittery

 Markets Continuing to be Jittery—-11/12/2018

After a nice rally last week, the markets started to sell off again after the Fed meeting. I believe the reason is two fold:

1) Fed Chair Powell gave no indication that he will stop raising rates.

2) There is no trade deal with China

Regarding the first point, the market needs reassurance that the Fed will not keeping raising rates indefinitely. However, Chair Powell has given no hint that he will stop. The market would love to hear him say something as simple as, “the Fed will be data dependent regarding future interest rate hikes.” But, again, he hasn’t done that as of yet.

Regarding the second point, seemingly every other nation/organization has signed a new trade deal with the U.S. and/or given hints that they are working towards an agreement, except China. The market will not be fully settled until this is done. The largest players on the global economic stage are the U.S. and China and until there is an agreement on how business dealing will be done between those two, global market will remain volatile.

A Look At Primary And Secondary Markets

Payment terms for these invoices could be 28 days for some, but as much as 120 days for others — taking even longer if the customer doesn’t pay on time.

Conrad Ford nails it in his July 28, 2016 article entitled, “What is Invoice Factoring” when he says, “there’s a big cash flow gap between spending money to complete a project, and receiving payment for it.”

The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance, and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.

There’s a big cash flow gap between spending money to complete a project, and receiving payment for it.

Typical Spot Factoring Transaction

Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the Forex that provides funding through its spot factoring service.

  • Forex’s invoice factoring services are fast, and in fact, unmatched in the industry.
  • You can decide what percentage of an advance you need.
  • There are no long term contracts involved.
  • There are no hidden fees.

If you would like to learn more about Forex’s Spot Factoring services, call +65 6666 6666

Stocks Basics: How Stocks Trade

Payment terms for these invoices could be 28 days for some, but as much as 120 days for others — taking even longer if the customer doesn’t pay on time.

Conrad Ford nails it in his July 28, 2016 article entitled, “What is Invoice Factoring” when he says, “there’s a big cash flow gap between spending money to complete a project, and receiving payment for it.”

The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance, and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.

There’s a big cash flow gap between spending money to complete a project, and receiving payment for it.

Typical Spot Factoring Transaction

Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the Forex that provides funding through its spot factoring service.

  • Forex’s invoice factoring services are fast, and in fact, unmatched in the industry.
  • You can decide what percentage of an advance you need.
  • There are no long term contracts involved.
  • There are no hidden fees.

If you would like to learn more about Forex’s Spot Factoring services, call +65 6666 6666