From Alan Abelson’s Always Informative Barron’s Column:
Let’s Hear It for Bad Estimates – Alan Abelson, Barron’s “China, it turns out, doesn’t report gross-domestic-product data as most everyone else does. It announces a growth rate, but neglects to supply a quarterly breakdown of real demand. Absent such vital information, it’s tough to get a grip on whether growth is healthily widespread or [...]
More Conflicted Advice From Wall Street
The venerable Goldman Sachs is pounding the table for another round of quantitative easing (QE)—see here. The bank thinks more QE is necessary because the recent slowdown in economic activity is more than a temporary phenomenon. While the economy may be weakening, the efficacy of such a remedy is suspect. Credit conditions are nowhere near [...]
More Trouble in the PIIGS Pen
Despite the best efforts of European policy makers, the CDS of the Euro-area’s PIIGS countries continue to signal severe stress. Ireland is the latest country to come under pressure from financial markets. Irish CDS have recently reached a new high. The market is anticipating that a default may be the only sustainable solution for some [...]
Japan’s Lost Decade
Japan’s ‘Lost Decade’ Wins Fresh Attention – James Mackintosh, Financial Times “The 1990s were certainly bad for Japan. Gross domestic product rose at half the rate of slow-growing France and a third that of the US. The Nikkei 225 index halved from its peak above 36,000…On paper, the 2000s too look dire: GDP rose only [...]
Gold Nears All Time High
Up 14% YTD, gold is once again on the verge of hitting another all-time high.
Need Yield?
Do you invest in stocks for income? Is your portfolio focused primarily on U.S. stocks? If so, you might consider diversifying globally. The dividend yield on the U.S. stock market is one of the lowest yields in the world. In the chart below, I show the yields of 23 of the world’s major stock markets. [...]
Consumers: TV Not a Necessity
T.V. sets are falling out of favor with consumers and fast. According to a recent study released by the Pew Research Center the percentage of Americans who consider television a necessity dropped 10 percentage points from 2009. The drop was the largest among a group of 12 items covered in the Pew Study. Ironically though, [...]
Existing Home Sales Plummet
Existing home sales plummeted 27% in July to a new 15-year low. Existing home sales have now entered double-dip territory. At the current rate of sales, there is a surplus of more than 12 months of existing home supply—a 28 year high.
How Many Utilities are in Your Portfolio?
A powerful relative strength rally in utilities stocks is underway. The S&P 500 Utilities Index has outperformed the S&P 500 index by 12.5% since early April. Investors are bidding up high yielding utilities stocks in search of yield.
This Economy is Booming
The economic recovery in Brazil continues to gain momentum. Brazilian GDP grew at 11.4% in the first quarter of 2010. Inflation remains tame by Brazilian standards at less than 5%, employment is up smartly, unemployment is at a record low, and consumer confidence is near pre-recession highs. Contrast the strong performance of Brazil’s economy to [...]
