GDP growth

Economic Stalling in Eurozone Inevitable?

By Friday, November 7, 2014

Economic Stalling in Eurozone InevitableWhen Germany recently announced some underachieving economic numbers, it was a red flag for the eurozone and Europe. When the stronger of the two pillars in the eurozone (France being the other pillar) begins to show some fragility, you have to take a step back to evaluate the situation.

Now, it shouldn’t be a complete surprise to you that there are growth issues brewing in the eurozone, especially given the … Read More

If the Economy Is Improving, Why Are Investors Pricing in a Slowdown?

By Monday, August 11, 2014

U.S. Economy Slowing Down Here in 2014The Bureau of Economic Analysis (BEA) surprised even the most optimistic of economists when it reported the U.S. economy grew at an annual rate of four percent in the second quarter of 2014.

On the surface, the number—four percent growth—sounds great. But how serious should we take that gross domestic product (GDP) figure?

Firstly, I’d like to start by pointing out that the BEA often revises its GDP numbers downward. … Read More

Why China Catches My Eye as a Top Opportunity Right Now

By Friday, July 18, 2014

My Top Three Foreign Investment OpportunitiesA 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

If You Only Look at One Picture Today, Make it This One

By Wednesday, June 11, 2014

Stock Advisors Most Bullish Since 2007Five years ago, it looked like the world was falling apart. Remember when Lehman Brothers went bankrupt, freezing financing on Wall Street? The government had to bail out General Motors and the Federal Reserve pumped money into too-big-to-fail banks. Investors were running scared of the stock market.

Seems like years ago…but it was only 2008 and 2009 when this all happened. Fast-forward to today, and thanks to trillions of dollars … Read More

How to Profit from China’s Shift in Consumer Spending

By Friday, May 16, 2014

China's Consumers Eager Spend; How  Profit from RiseChina is facing some growth issues, but so are the majority of the countries in the Western Hemisphere.

The country’s new government leader, President Xi Jinping, came on board in March 2013 and is planning to change the landscape of China vis-a-vis a new focus on domestic consumption and a reduction in its dependence on exports and foreign demand.

This new plan will take some time to undertake, but if … Read More

Proof the Incentive to Work Is Fading

By Monday, May 5, 2014

U.S. Exports Plummet First Quarter 2014I keep hearing about the economy improving, but I keep asking, where? I ask because the facts continue to say otherwise.

The U.S. Bureau of Economic Analysis reports gross domestic product (GDP) came in at just 0.1% in the first quarter of 2014. To remind my readers, in the fourth quarter of 2013, U.S. GDP grew by 2.6%. (Source: U.S. Bureau of Economic Analysis, April 30, 2014.)

These GDP figures … Read More

Will the U.S. Escape the Rapid Inflation That Usually Follows Massive Money Printing?

By Tuesday, April 8, 2014

Proof Growth in Money Supply Not Spurring GDP GrowthIs the Federal Reserve ignoring the very basic law of economics…the law of diminishing marginal utility? You remember that term from economics in high school. The law of diminishing marginal utility states that the more of something you have, the lesser its impact on you.

The Fed has been printing money in hopes of stimulating growth in the U.S. economy. As the Fed printed more paper money, its balance sheet … Read More

Important Message Retailers Are Sending Us About the Economy

By Thursday, March 6, 2014

Consumer Spending Hits Trouble TerritoryConsumer spending in the U.S. economy is highly correlated to consumer confidence. If consumers are worried about the economy, they pull back on their spending.

The Conference Board Consumer Confidence Index decreased by 1.63% in February from January. (Source: Conference Board, February 25, 2014.) And we see the corresponding pullback on consumer spending in weak U.S. retail sales.

Macy’s, Inc. (NYSE/M) reported a decline of 1.6% in revenue in its … Read More

These Two Indicators Say U.S. GDP is Already Declining in 2014

By Wednesday, February 19, 2014

2014 Worst Growth Year for World Economies Since 2009In 2013, the U.S. economy, as measured by gross domestic product (GDP), rose at an average rate of 1.9% compared to 2.8% in 2012. And as it stands, GDP may slow further in 2014.

What makes me think this?

In January, U.S. industrial production declined by 0.3% from the previous month. This was the first decline in production since August of 2013. Production of automotive products in the U.S. economy … Read More

Revenues Down for This Aluminum Stock; Trouble for Global Economy Ahead?

By Monday, October 7, 2013

Revenues Down for This Aluminum StockWhile the focus is on the government shutdown and debt ceiling, I’m getting ready for the start of another earnings season, to see if America delivers. Of course, the somewhat muted gross domestic product (GDP) growth has me fully expecting to see a drag in revenues across the broad.

Alcoa Inc. (NYSE/AA) starts the third-quarter earnings season when it reports after the markets close tomorrow. The company is a pretty … Read More