Are markets near a volatility point ?

Recent data suggests that a significant change may be on the horizon for financial markets


23 August 2024 · Friday

Good evening, WeekendInvestor

Today’s Daily Byte

In today’s market overview for 23 August, we observed that the market refused to make significant moves in either direction, remaining very flat throughout the day. Despite an initial gap up in the morning, the market couldn’t sustain it, with most counters showing lethargy and little movement.

Although the week began with a positive trend, gaining approximately 350 points over the last five sessions, the last two days have been dull, which is not necessarily negative. The Nifty index ended the week absolutely flat, reflecting the overall market sentiment.

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Time to Buy Equity or Gold ?

In 1971, a significant change took place in the global financial system. The U.S. decided that the dollar would no longer be backed by gold, ending a system known as the Bretton Woods Agreement. Before this, the U.S. dollar was tied to a fixed amount of gold, allowing countries like France and Italy to exchange their dollars for gold.

However, this system was halted by President Nixon, who initially stated it was a temporary measure. But it became permanent, and the dollar was set free, no longer needing to be backed by gold.

This change caused the price of gold to skyrocket in the years that followed.. . . . .

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Are markets near a volatility point ?

Recent data suggests that a significant change may be on the horizon for financial markets. When the Federal Reserve’s interest rates start to decline after reaching their peak, there is often a period of market unrest that follows.

This pattern has been observed in previous years, notably during the major financial crashes in 2008 and 2020. The question now is whether this trend will repeat itself in the near future.. . . . .

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Why is Gold moving East ?
Are we at the cusp of a correction ?

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