By Michael Lombardi, MBA | November 21, 2012
Consumer spending, which is so desperately needed, only increases when consumers are happy—when they are confident about their jobs, savings, investments, and overall wealth.
Right now in the U.S. economy, none of that is present. For consumer spending to increase, you need consumer confidence in the U.S. economy to increase. I don’t see it, even after multiple rounds of quantitative easing and the government adding a significant amount of debt. … Read More
By Mitchell Clark, B.Comm. | November 14, 2012
In a sense, the stock market continues to be held hostage by the continuing sovereign debt crisis in the eurozone and the “fiscal cliff” in the U.S. But investor sentiment changed before recent worries regarding these two issues, and corporate earnings growth is slowing. I think we’ll be very lucky to see any gross domestic product (GDP) growth next year from Western economies.
Wall Street still expects broad-based earnings growth … Read More
By George Leong, B.Comm. | November 14, 2012
China may be slowing, but the resource-hungry country is always on the hunt for resources to help fuel its industrial growth in the decades ahead. And if you believe the country and its objective to double its gross domestic product (GDP) by 2020 (read “China’s Golden Years Still to Come”), then you have to believe that reliable resources will be needed. This means internal exploration and the buying of foreign … Read More
By Michael Lombardi, MBA | October 16, 2012
As we all know, the eurozone credit crisis has taken away any chance of economic growth in the global economy.
Spain—the current epicenter of the credit crisis in the eurozone—has seen its credit rating downgraded to a credit rating of BBB- from BBB+ by the Standard and Poor’s (S&P) credit rating agency. A credit rating of BBB- is the lowest investment grade credit rating issued by S&P and just one … Read More
By George Leong, B.Comm. | October 16, 2012
The majority of you have likely heard of the growing reference to “Chindia,” the regions of China and India. The explosive demand for goods and services here will be driven by a combined population of about 2.5 billion people, or about 37% of the world’s population.
Yet it will not be just the staggering growth in population that will substantially increase demand, but also the size of each country’s economy … Read More
By Michael Lombardi, MBA | June 8, 2012
The U.S. Congressional Budget Office (CBO) has issued another scathing report on the state of the mountainous U.S. national debt.
The CBO says the national debt will double by 2026 and reach 200% of gross domestic product (GDP) by 2037 unless firm action is taken to stem America’s annual trillion-dollar deficits. (For the benefit of my new readers, Greece got into trouble when debt-to-GDP in that country hit 130%.)
There … Read More
By Mitchell Clark, B.Comm. | June 7, 2012
The daily ebb and flow of the stock market really illustrates the degree to which investors buy and sell based on their emotions. Europe says there’s an idea to work more closely on the sovereign debt crisis; the stock market goes up. Europe doesn’t really execute on said idea; the stock market goes down. Granted, it’s tough for an equity investor to make solid choices after all that’s transpired since … Read More
By Mitchell Clark, B.Comm. | May 30, 2012
Just when the U.S. economy and the housing market are turning up, Europe’s sovereign debt bomb critically injures global capital markets. That’s my biggest fear going forward and it’s a very real possibility. The U.S. stock market would be quite a bit higher if there was more certainty in the eurozone.
Something has to give with Greece. Even with substantial austerity measures, that country’s finances are unsustainable. The bond market … Read More
By George Leong, B.Comm. | May 25, 2012
The debt and growth problems in the eurozone continue to dominate the headlines. The eurozone countries are looking at the impact of Greece exiting the 17-country eurozone. Greece can’t even elect a coalition government to deal with the austerity measures.
Now there’s news that the eurozone is continuing to slide. Not really a surprise. The eurozone composite Purchasing Managers’ Index (PMI) contracted to 45.9 in May, the lowest level since … Read More
By Michael Lombardi, MBA | May 25, 2012
The U.S. durable goods report is an important gauge of economic growth. It focuses on big-ticket items that are purchased by businesses and consumers, which are meant to last at least three years; a sign of business and consumer confidence.
In April 2012, the headline new U.S. durable goods order number was up 0.2% (source: Department of Commerce). This matched analysts’ estimates. But when you look deeper, we see a … Read More