european economy

European Economy 2015: Economic Forecasts and U.S. Profits

By Sunday, May 17, 2015
European EconomyMay 13, 2015 was a busy day for the release of European economic results. How did the European economy fare and how do these numbers affect U.S. companies? Forecasts, for the European economy as a whole, call for the region to muddle through a “mild cyclical upswing” driven by cheaper oil, a lower euro, and government spending. (Source: European Commission, May 5, 2015.) The same forecasts expect gross domestic product .

The Risk-Reward Ratio of Buying Stocks Now

By Monday, November 24, 2014
The Risk-Reward Ratio of Buying Stocks NowIn 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 .

April 2012 Devastating for Retailers

By Thursday, May 10, 2012
consumer confidenceJust how bad is it getting out there? There is no question that the U.S. east coast just experienced the warmest winter in decades. And, as a result, shoppers who were normally held back by cold weather were free to visit their favorite local store to shop and the retail sector welcomed them with open arms. As strong retail sales—when compared to the previous year when we actually had a .

Social Government in France: A Wrench in the Plans

By Thursday, May 10, 2012
Germany has lost its dance partner… Francois Hollande is France’s first elected socialist president in 17 years. He has stated that he will reduce the government’s budget deficit while increasing taxes and increasing spending. He believes he can eliminate the budget deficit by 2017. Just the kind of guy France needs… Because of the European economy’s recession, France’s budget deficit is already worse than it was a year ago because .

Quarterly Earnings Shocker from a High-tech Leader

By Sasha Cekerevac, BA Monday, January 23, 2012
Quarterly Earnings Shocker from a High-tech LeaderWe just had a buffet of quarterly earnings releases from some of the largest technology firms: Google Inc. (NASDAQ/GOOG); Microsoft Corporation (NASDAQ/MSFT); Intel Corporation (NASDAQ/INTC); and International Business Machines Corporation (NYSE/IBM). Following the release, three out of the four firms’ stocks were up. Would you be surprised to learn that it was Google that disappointed investors with their quarterly earnings release? Investors have sold the stock hard; now down over .

Two Major Eurozone Countries to Fall Back into Recession in 2012

By Wednesday, January 4, 2012
Two big eurozone countries are headed back to recession this year. Spain, the eurozone’s fourth largest economy, will fall back into recession in early 2012, according to a statement made by its Economy Minister.Spainhas the highest unemployment rate in the eurozone at a staggering 21.5%.Spainand its citizens are in real trouble. Italy, the third largest eurozone economy, will also be technically in a recession in the first half of 2012. .

Will This Be Lucky Year Number 12?

By Wednesday, January 4, 2012
The year 2011 marked the 11th consecutive year that gold bullion prices closed the year higher than they started. Here’s the closing price for gold bullion each year since 2000: 2000 – $273.00      2006 – $638.00
2001 – $279.00      2007 – $838.00
2002 – $348.00      2008 – $884.00
2003 – $416.00      2009 – $1,092
2004 – $438.00      2010 – $1,405
2005 – $520.00      2011 – $1,530 To answer the question,

Stock Market: What Could Jump
Start a New Short-term Trend

By Wednesday, December 21, 2011
If the U.S. stock market is going to advance in any meaningful way, then it’s going to have to do so based on domestic economic news, to the exclusion of what’s happening in Europe and China. The eurozone debt crisis is a very real risk to the global economy and so is China’s declining economic news, but, at the end of the day, the only way the U.S. stock market .

Steep Bets Against Euro May Backfire

By Wednesday, December 7, 2011
When everyone is on the bandwagon, that’s the time to get off… According to a report from the CFTC, short positions against the euro were at net $14.4 billion in the third week of November—a 17-month high. Seems everyone is betting against the eurozone and, with such a heavy consensus trade, I wouldn’t be surprised to see the trade—short euros against the U.S. dollar—backfire.

Europe’s Debt Crisis Continues to Pound Domestic Investor Sentiment—Who Has the Power Now?

By Friday, November 11, 2011
It’s not a good situation to have your own domestic investor sentiment strongly influenced by the reality in an economy that’s far away. The U.S. stock market is at the point now where it could be making real gains based on its own solid corporate fundamentals.The debt crisis in Europe continues to be a thorn in the side of domestic stock market investors and, to be very frank, the richer European countries are getting fed up with the less well managed countries that created the debt crisis on their own. From my perspective, I think that U.S. institutional stock market investors are attributing too much credence to Europe’s story—it’s a debt crisis that only Europeans .
Sep. 1, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)


Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.


Will slowdown in China affect the U.S. economy?

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Subject: The $2 Silver Stock Every Investor Should Own!

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