World markets are mostly green this morning despite China’s growth slump. I think the slow-down was priced in, which is why the data has been largely shrugged off. S&P futures are 2-3 handles higher, with only the all-time intraday high of 1687 left as resistance. With the market at ...
The stimulative monetary policies that usually result in a weak currency also have a positive impact on the nation's capital and housing markets, which in turn boosts domestic consumption through the wealth effect. Beggar Thy Neighbor Since it is not too difficult to pursue growth through curre...
Cost-push inflationis a result of the increase in prices working through the production process inputs. When additions to the supply of money and credit are channeled into a commodity or other asset markets, costs for all kinds of intermediate goods rise. This is especially evident when there'...
However,public-traded REITs and ETFs tend to act more like stocksthan like real estate. If you are an investor seeking less volatility, investing more in a publicly-traded REIT or real estate ETF is not the way to go. Real Estate Crowdfunding Outperformance Take a look at the chart below ...
To explain, the USD Index benefits from both the safe-haven bid (stock market volatility) and economic outperformance relative to its FX peers. Conversely, U.S. Treasury yields only benefit from the latter. Thus, when economic risks intensify (like what we witnessed with Evergrande on Sep. 20...
However, we can also see that in the current market, orders dry up and traders retreat due to extreme volatility, resulting in an imbalance between buyers and sellers. When will the market stabilize after the slump? Investors may not know much about the virus, and the epidemic itself is som...
Something might blow up – from the archetypal boiler to a car engine. The roof could literally fall in. A far-flung relative could get married or get cancer. Either way you might want to fly out to be with them. Your investment platform couldgo bust, leaving you in need some other so...
It now takes 30 years to breakeven according to the duration calculator, because with no coupons the impact upon return is driven solely by capital gains – with a 0% coupon you don’t have any interest payments to invest into higher-yielding bonds to accelerate you to breakeven. ...
So we really need to be serious about addressing the debt picture politically. If so, there are better days ahead, better markets ahead. If not, I’m afraid we’re not going to like the outcome. Last point: in the face of all that uncertainty I believe the best course of action when...
The FT View: A new president and new role for the World Bank The bank’s head should be appointed on merit, not nationality The Big Read The Big Read: Volatility: how ‘algos’ changed the rhythm of the market Critics say high-frequency trading makes markets too fickle amid rising anxiety...