For the U.S. consumer the economic boost provided by lower gasoline costs is hitting at the perfect time. The Federal Reserve just ended their extensive QE stimulus program at the end of October with hope the economy could stand on its own.
With QE nearly finished the Fed now has to outline their plans going forward. Will there continue to be reinvestment of the QE bonds that roll off, what many expect or will market conditions decide that.
Once again managed futures found itself in a difficult environment and, although the Barclay CTA Index was negative for a record third consecutive year, there were many traders able to navigate the rough waters to find profitable trading opportunities.
The Libyan Investment Authority recently sued Goldman over some 2008-vintage derivatives trades gone wrong. I wrote about it last week but didn't yet have Libya's complaint. That came out today -- here is the complaint, or in British the "Particulars of Claim" -- and it's fun reading
The gold-backed ETP holdings rose by the highest amount on Oct. 22 in a year. However, analysts from Goldman warn that gold prices will remain volatile in a range between $1,250 to $1,350 until the Fed makes clearer its tapering decisions.
The gold futures may have already priced in a $10 billion tapering although gold prices are still very volatile as the path of tapering is uncertain. Investors will also focus on the Fed's economic projections for 2016.