China’s economy is facing headwinds that could lead to a Chinese economic collapse in 2015. Economic growth forecasts say China will grow at a very slow pace this year, its slowest pace in a quarter-century and well below historical averages. With the recent turn of the Chinese calendar and onset of the year of the goat, investors need to ask themselves one simple question: will China’s economy collapse in 2015?… Read More
China is in the news, but not for good reasons. While the Chinese stock market continues to blaze along in 2015, outperforming our domestic markets, the associated risk is high.
While I like China in the long-term, I have not been zealously into Chinese stocks for a while, from neither an investment nor a trading standpoint. For me, there have been much better trading opportunities in the domestic stock market… Read More
In the third quarter of 2014, gross domestic product (GDP) for the eurozone region increased by 0.2% from the previous quarter, when it increased only 0.1%. The growth in the region has been very dismal. Major countries like Germany and France are facing economic scrutiny now. In the third quarter, Germany’s economy grew by only 0.1%; France’s GDP only increased by 0.3%. (Source: Eurostat, November 14, 2014.)
Italy, the third-biggest… Read More
Oil plays a critical role in economic growth as oil is used in a variety of industries. In times of economic growth, oil prices rise. When the economy is soft, or getting soft, oil prices fall as demand for oil wanes.
Over the past two months, oil prices have collapsed for the simple reason that the global economy is getting weak.
The chart below shows the steep sell-off in oil… Read More
The Chinese economy is showing signs of stalling, but there are numerous areas that continue to show decent growth metrics, including automobiles and mobile phones.
Now, if you think AT&T Inc. (NYSE/T) or Verizon Communications Inc. (NYSE/VZ) are big, take a look at China Mobile Limited (NYSE/CHL). China Mobile is the largest mobile phone operator in China, with about 790 million subscribers as of June 30—that’s more than the entire… Read More
A few years ago, investors couldn’t get enough of Chinese stocks. This led to numerous frauds committed by crooks in China that has since tarnished the reputation and reliability of all Chinese companies, whether they’re legitimate or not, despite their operating in one of the top growth areas in the world.
While I’m not focused on Chinese stocks at this moment due to better trading opportunities in the domestic stock… Read More
There are two important charts I want my readers to see this morning.
The first is a chart that is an indirect measure of demand in the global economy. Right now, the Baltic Dry Index (BDI) sits at its lowest level of the year. Since the beginning of 2014, the BDI has fallen 60%.
The BDI measures the cost of moving major raw materials by sea in the global economy…. Read More
The Chinese economy had been growing at about 10% a year, like clockwork, for years. Now, China is in the midst of an economic slowdown, with growth expected to come in this year at 30%–50% below… Read More China’s five-year average growth rate.
Why is China’s economy growing so slowly, and why does it matter to us here in North America?
Manufacturing, the key component of China’s economy, is quickly slowing. The
Copper is considered an industrial metal, used in industries across the board. When copper prices fall, it’s usually an indicator of a slowdown in the global economy. On the contrary, gold bullion isn’t much of an industrial metal; rather, it is used as a hedge against uncertainty in the global economy.
When you look at these two metals together, often referred to as the gold-to-copper ratio, they tell us something… Read More