Global equity markets are selling off this morning and bond yields are rising as news that the European Central Bank considered removing a pledge to increase their bond-buying program if needed. Money printing by the world’s largest central banks has gone on for so long that it is easy to forget the massive amount of support they are providing to global financial markets. A quicker than anticipated end to the ECB’s bond buying program could remove some of that support. Bloomberg has the story. European Central Bank policy makers considered removing a pledge to increase their bond-buying … [Read more...]
Archives for July 2017
Long-Awaited Tesla Model 3 to Roll Off Assembly Line Friday
Current and aspiring Tesla owners and enthusiasts have long been anticipating the roll-out of the car company's "Model 3." The Model 3 will be Tesla's first mass-produced car, and prices will start at $35,000, aimed squarely at the mid-market. Tesla CEO Elon Musk hopes to ramp up production of the Model 3 to to 500,000 cars in 2018. Things will start slow though, with an anticipated 100 cars produced in August. Neal Boudette reports at The New York Times: Tesla said production of its first midpriced car, the Model 3, would begin on Friday, two weeks earlier than planned, with the first … [Read more...]
Amazon Prime Wardrobe vs. Traditional Retail: The Hits Just Keep Coming
Apparel is something that intuition says people want to buy at the store, not online. It's easier to make clothing choices when you can try something on, examine its features, and make sure the size is right for you. But Amazon is attacking that perception with a new service called Amazon Prime Wardrobe. The service sends Amazon Prime members a box of eligible apparel items, which they then have seven days to try on, shipping back what they don't want, for free. The Wall Street Journal's Suzanne Kapner explains: Customers aren’t charged for the purchase during the trial period and they are … [Read more...]
Volvo puts Tesla in its Cross Hairs
Tesla shares are on fire, up 65% YTD. Tesla is a story stock. Even more so than the FANGs. Tesla’s investors seem to be convinced that the world is moving toward electrification of the global auto fleet (probably true) and Tesla is going to lead the way and in the process become the most profitable car business the world has ever seen. The latter assumption seems suspect. The auto business is fiercely competitive. The GM’s, Mercedes, BMWs, and as outlined here, Volvos of the world, aren’t going to sit idle. Volvo Cars announced that every model from 2019 onwards would have an electric … [Read more...]
Are You Prepared for an Emergency While Travelling Abroad?
As you plan your next trip abroad make sure you know your health insurance coverage. You'll need to do some research on your health plan if you don't already know how it works. Fidelity Investments gives you a head start on what you need to know: Call your health insurance company The first step is to contact your health insurance company to verify whether your emergency medical coverage extends outside the U.S. Contact the customer service department and ask these kinds of questions: If I get sick or injured abroad, will my policy cover me? Does my insurance cover pre-existing … [Read more...]
Nike Sees the Future-Sells Shoes to Amazon Directly
After holding out as long as possible, Nike will now sell shoes directly to Amazon.com. With traditional retail flailing, Nike doesn't have much choice, it needs to sell where the customers are, and that's online. Sara Germano and Laura Stevens report: Nike Inc. NKE -1.23% has agreed to sell some of its products directly to Amazon.com Inc.,AMZN +0.66% a person familiar with the matter said, a concession by the sneaker giant that it can no longer afford to ignore the online retailing behemoth. While Nike sells its shoes and sportswear through department stores and specialty retailers, it … [Read more...]
Happy Independence Day!
Are your Municipal Bonds at Risk of Default?
Illinois, one of the biggest muni bond issuers in the country is at risk of having its general obligation bonds downgraded to junk status. If the state is downgraded it would become the first in the nation to be rated junk. The FT reports Despite marathon talks, Democratic and Republican lawmakers were unable to agree on a budget by the end of the fiscal year that ended on Friday. Rating agencies had said that missing the deadline was likely to trigger a downgrade, and while talks continued over the weekend, it was looking increasingly likely that no deal will be agreed. S&P and … [Read more...]
Does Europe Need America Anymore?
Does Germany, and by extension Europe, need America anymore? German exports to Asia are growing rapidly. Exports from the country to the rest of Europe and to the U.S. are growing too, but at slower rates. German exports to China rose 12% in the first four months of the year, with exports to India rising at about the same rate, and exports to Vietnam jumping over 20%. Nina Adam, writing at the Wall Street Journal, suggests new business in Asia could offset any negative trade effects brought on by the Trump administration in the U.S. She writes: Mr. Trump has repeatedly criticized … [Read more...]
Where to Live to Save for Retirement. It’s Not Where You Think
I’ve spent some time lately discussing states with booming economies like South Carolina, and states that are near bankruptcy, like Illinois. Depending on a state’s fiscal strength, or lack thereof, your earnings could be targeted to fill the gaps. And some states have a cost of living so high, no matter what you’re making, it’s nearly impossible to save. Maximizing your savings early on is the most important thing you can do to jumpstart the power of compounding in your retirement portfolio. But many Americans aren’t making very much money until their peak earning years, from say 45 to 65. … [Read more...]
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