This is probably the most outspoken Powell has been in warning that the current unprecedented magnitude of the hiking cycle could end badly. Money markets continue to price in another 75bp rate rise in July followed by a 46% chance of another one in September. Yesterday saw Fed Chair Powell give his testimony to the US Senate Banking Committee. He underlined the FOMC’s commitment to bringing inflation down at all costs and acknowledged that a recession was “certainly a possibility”. He said there was a clear risk that the quick tightening of monetary policy could tip the US economy. James Beeland Rogers Jr., commonly known as Jim Rogers, is an American veteran investor, Chairman of Beeland Interests Inc. and financial author who co-founded Quantum and Soros Fund Management.
This sort of liquidity and access to tight spreads as low as zero, is no longer just the domain of hedge funds. Through his lifetime of financial experience, Rogers has been through many forms of bear markets. More specifically, Rogers pointed to the growing amount of debt in major economies which contributes to the intensity of the stock market bears. As a hedge against this economic backdrop, Rogers’ portfolio consists partially of the US dollar. His reasoning is that the US dollar is considered a traditional safe haven by investors in times of turmoil. However, his financial experience has also led him to take note of the potential over-valuation of the US dollar, and when the time comes, he will be looking to sell.
- Traders who prefer raw spreads will find a slightly more competitive overall offer at Vantage FX.
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- Leverage the volatility of the largest stock market indexes in the world such as the SP500, DAX, FTSE and DJ30.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. If investors opt for a broad-based approach there are further choices to make. Traditional commodities futures indices emphasise short-dated futures scammed by limefx contracts, making them more vulnerable to negative roll yield. This occurs when the sale of a maturing contract at one price and the purchase of a longer-dated contract at a higher price causes a loss for the investor each time this trade is executed. The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
‘Not the time’ for precious metals. Yet.
This article is written based upon information the author considers reliable, and Vantage does not warrant its accuracy or completeness, and it should not be relied upon as such. Rogers pointed out that over the years, known oil reserves have been declining, especially in Saudi Arabia, and that the consumption of oil in major economies has increased, which will lead to higher oil prices in the future. With the OPEC oil supply cut looming, Rogers’ focus is the overall supply and demand of oil in general.
A shrinking sugar beet sector could hit other staple crops because farmers need to plant alternates like sugar beet or oilseeds on their wheat, barley and corn fields every other year in order to maintain soil health. Several seed makers, including Germany’s KWS Saat (KWSG.DE) are working on new sugar beet varieties that would be naturally resistant to virus yellows, but farmers say they may not be available https://limefx.group/ until 2027. French grower Pele said he hasn’t yet reduced his sugar beet crop because of the investment he’s already made, but the yield from one of his plots is down by 45% this year. The acreage fall led the world’s second largest sugar producer Tereos to close a factory in northern France this year, losing 123 jobs. Tereos said at the time it was expecting to receive 10% less beet from farmers.
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There are pure-play oil and gas, industrial metals and gold ETFs, but these funds expose investors to a particular commodity without the diversification of broad-based exposures. The loonie retains a strong (negative) correlation with US equities so when the S&P500 suffers, so does the CAD. That said yesterday’s better-than-expected CPI print at 7.7% in May reaffirmed bets for a 75bp rate hike at the upcoming BoC meeting on 13 July. The views and opinions expressed in this article are those of the interviewee and the author, and do not necessarily reflect the opinions of Vantage.
The reasoning Rogers gave is that silver has peaked $50 twice and is trading at approximately $17 at the time of the interview. Although silver’s all-time highs are three times current day prices, with the appropriate market conditions, silver could easily re-visit its $50 high or further. Energy traders take advantage of fluctuations in the price of a certain specialised set of commodities markets such as oil, gas, gasoline and heating oil.
Driving Force for Change
Past performance is no indication of future performance and tax laws are subject to change. The information in this website is general in nature and doesn’t take into account your or your client’s personal objectives, financial circumstances, or needs. Please read our legal documents and ensure you fully understand the risks before you make any trading decisions. Telephone calls and online chat conversations may be recorded and monitored. Corporate actions like dividends and mergers, which impact equity and index CFDs, are passed on to traders. Third-party withdrawal costs may apply, depending on the chosen payment processor.
- To reiterate Roger’s opinion on trading at the right price and conducting proper research, Vantage offers CFD trading which allows traders to go long or short on various asset classes.
- Award-nominated reporter covering high impact events in soft commodities and agricultural commodities more broadly, analysing industry trends and uncovering developments that drive the market.
- IC Markets carved out a prominent standing in today’s ultra-competitive brokerage industry due to outstanding services provided to all strategies.
- This occurs when the sale of a maturing contract at one price and the purchase of a longer-dated contract at a higher price causes a loss for the investor each time this trade is executed.
All Vantage clients can experience the same trading functionality on their mobile device as MetaTrader for PC and Mac – such as one touch trading, a variety of order types, instant access to over 1000+ tradable assets, and more. Vantage FX states that it processes withdrawal requests within 24 hours, while IC Markets does so on the same day if it receives the withdrawal request before the cut-off time. Most online payment processors have near-instant processing times, while bank wires and credit-debit card transactions can take up to ten business days once the broker processes a withdrawal request. Vantage FX offers traders a particularly attractive pricing environment in the Raw ECN account.
Available Markets
According to Rogers, the OPEC and their meetings does not have as much influence on oil prices as people might think and prices are dictated by overall supply and demand changes. To see a potential shift in the markets, Rogers emphasized to keep a look out for potential wars, a re-emergence of Covid, and major central banks interest rate hike cycles. Choose from precious metals, oil and soft commodities to take advantage of major market cycles. It provides a trusted trading ecosystem that enables clients to achieve their own success, in a faster and simpler manner.
When asked about the stock market bottom, Rogers firmly said that the bottom is not near and in order to have an indication on where the bottom is, markets must first reach a stage of despair. However, Rogers was also quick to correct the saying “the stock market always goes up”. According to Rogers, the current economic climate is in an unprecedented state where in recent years central banks in major economies have done quantitative easing at a level not seen historically.
Trade Commodities CFDs
Energy commodities are some of the most important markets in the world because they set the price for our everyday consumption of the fuel required to live what we now consider to be our normal lives. With our RAW ECN account, traders can experience some of the lowest trading costs in the industry. We fully understand the importance of keeping trading costs to a minimum, so you can realise greater profit.
Swap rates on leveraged overnight positions exist, and both brokers are transparent about all involved trading costs. Feeds can come through from as many as 70 institutions when viewing spreads on the MetaTrader 4 platform. This variety allows us to offer industry-leading spreads as low as 0.0 pips on RAW ECN accounts, and 1.0 pips on Standard STP accounts. While spreads on the majors can go below 1-pip during liquid times – the typical forex spreads are listed below.
