Global Economy

Taking together all of the countries, one would have a view of the global economy. Understanding the global economy and the shifts among countries, businesses can better allocate capital to the areas of the world that are growing. The U.S. currently is the largest economy in the world, now followed by China. Shifts among countries in their global economic ranking are the result of many criteria, including population growth and fiscal and monetary policies. Knowing which part of the world is growing economically and which part is shrinking is extremely important for businesses.

What Canada/China’s Yuan Trade Deal Means for U.S. Dollar

By Friday, November 14, 2014

How Long Will This U.S. Dollar Rally LastAs the chart below illustrates, since July of this year, the U.S. dollar has been rallying against other major world currencies.

I, for one, do not expect to see the rally in the U.S. dollar sustained. I believe the U.S. dollar is currently rallying, because other parts in the global economy are doing worse than the U.S. While the U.S. do… Read More

Low Oil and Copper Prices Tell Us Stock Market in Trouble

By Wednesday, November 12, 2014

Dangers of Low Oil and Copper PricesTo see where the global economy is headed, I follow the prices of oil and copper. The prices of these commodities tell us about demand in the global economy. If the prices of oil and copper are rising, it means there’s prosperity. If the opposite occurs, it means industry (factories) is not busy and that a global economic slowdown is no… Read More

Why I Expect a Big Boost in This Company’s 2015 Dividend Payout

By Wednesday, October 22, 2014

Company 2015 Dividend PayoutEven with the recent price retrenchment, there’s not a lot of value circulating in this stock market. Everything’s already gone up and the capital gains have been great the last few years. But it’s still a slow-growth environment in the global economy, and despite a very accommodative monetary policy, stocks can’t go up for… Read More

Plunging Oil Prices Next Big Investment Opportunity?

By Friday, October 17, 2014

Declining Oil Prices the Market’s CatalystWhile corporate earnings continue to come in solid, stocks continue to be sold.

It’s not all the time that stocks follow oil prices, but they certainly have this time around and the selling momentum has gained on deflationary pressures from producer prices to declining expectations for global economic growth.

And the selling is h… Read More

Why Stock Prices Will Continue to Fall

By Wednesday, October 15, 2014

Stock Prices Will Continue to FallNow that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak.

Since 2009, every market pullback presented invest… Read More