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.... Read the full story
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... Read the full story
An Alternative to Ultra-Low Treasury Yields
The short end of the yield curve remains punishing for investors. Yields on two-year notes are now below the lows reached at the height of the financial crisis, and five-year notes yield a scant 1.68%. Going out longer on the yield curve still isn’t an answer to paltry yields, though. Long bonds... Read the full story
The Lifeblood of the U.S. Economy
The small business sector accounts for half of private-sector GDP and two-thirds of new job creation. You aren’t likely to see the current stimulus- and inventory-restocking-led recovery turn into a self-sustaining recovery without a strong small business sector. What is the current state of small... Read the full story
5 Energy Market Insights
The 2010 edition of the BP Statistical review of World energy came out this month. BP’s Statistical review has been published for 59 years. It provides data on energy consumption, production, and reserves for all of the world’s major fuels broken down by country. Any investor seriously considering... Read the full story
Are Small-Cap Stocks Running Out of Steam?
Is the strength in small-cap stocks running out of steam? I’m not talking about the recent correction in small stocks, but rather the relative performance of small cap stocks versus large cap stocks over the past decade. My chart shows the ratio of small stocks as measured by the Russell 2000 index... Read the full story
Avoid This Losing Strategy
Using a buy and hold strategy to invest in agricultural commodities futures or funds that buy agricultural commodities futures is a loser’s game. Agricultural commodities futures routinely trade in a state of contango. Contago occurs when distant month futures contracts trade at a premium to near... Read the full story
The European Crisis Crusade
Treasury Secretary Geithner is on a crusade to prevent the debt crisis in Europe from spinning out of control. The Wall Street Journal reports that Mr. Geithner is chiding European leaders on their crisis response. He apparently believes he has a better strategy for Europe. Geithner wants Europe to pile... Read the full story
A Valuable Lesson
If you have been following the Securities and Exchange Commission (SEC) civil suit against Goldman Sachs, you know the SEC is suing the firm for underwriting and selling a synthetic collateralized debt obligation (CDO) without disclosing to the buyers that a hedge fund taking a short position in the... Read the full story
Are Small Stocks Safer Than Large Stocks?
A recent study in Financial Analysts Journal (FAJ) found that a portfolio of small-capitalization stocks is no more risky than a portfolio of large-capitalization stocks. And if the number of stocks in a small-cap portfolio exceeds 25 or so, that portfolio may be less risky than a large-cap portfolio.... Read the full story
