Inya Ivkovic, MA
While perusing weekend financial press, I could barely smother a chuckle. Again the economists and various experts are puzzled over how something relatively small, and thus presumed insignificant, can threaten to bring down an entire institution. The first time this question arose three years ago, it was the…
Ireland’s taking the bailout from the European Financial Stability Facility, put together by the European Union (EU) and International Monetary Fund (IMF) when Greece was in trouble this summer, brought little comfort to the global markets. If nothing else, it has actually elevated fears of government debt default.…
Volatility abounds and it is coming from every which direction. The Eurozone’s fiscal problems unfortunately persist. Inflation has become a real threat in China and other emerging markets. The U.S. Federal Reserve’s second round of quantitative easing is controversial and, as such, has only dialed the knob on…
The past few months have given investors a crash course in what makes commodities tick. Your PROFIT CONFIDENTIAL editors have discussed quite a collection of factors that drive commodity prices, such as currencies, emerging markets, economic output, supply and demand imbalances…even weather was mentioned as swinging a few…
The Fed has really been put through the ringer after it decided to push its way into the Treasury market one more time and unleash Quantitative Easing II (QE2) onto the U.S. financial systems in an effort to keep interest rates low and stimulate lending, borrowing and spending.…
Germany’s dominating financial power in the European Union (EU) is indisputable. The region’s most thriving economy has earned its right to seek higher moral and financial ground than the majority of its fellow Eurozone members. These days, Germany is the Eurozone’s lord and master, it carries a huge…
For most of the year, oil prices have offered little excitement, hovering at about $78.00 per barrel. The primary reason for such a non-eventful performance was the global economic growth that just did not have enough momentum to push up the demand for oil. In addition, inventories have…
Ireland and Greece’s sovereign debt problems have sent credit markets into turmoil again. Hardly surprising, considering that both countries are dealing with mountains of prime fiscal problems and have been reduced to Europe’s pariahs in more ways than just monetary. This is bound to have an adverse impact…
Time to fess up to things again in eurozone, as Ireland finally admits that it is talking with its fellow eurozone members. Although, allegedly, Ireland and the others are not talking about Ireland’s potential need for a bailout, because Ireland insists it does not need a bailout. Which…
You would have to be living in a cave not to notice the bull market in commodities. As with any bull market, the logical question is whether it is sustainable or not and, if it is sustainable, what is its lifespan? Some of the top economists in North…
While initial public offering (IPO) activity in the U.S. has hit historical lows, the IPOs in Asia have soared to record high levels. Asian equity markets are flooded with new offerings, partly prompted by emerging markets’ soaring economies and partly by record-low bond yields. Since the beginning of…
Now, before anyone gets too excited or starts thinking that I’ve lost all my marbles after putting the words “safe,” “profit” and “emerging markets” into one sentence, let me be clear about something. Emerging markets are a risky gamble on which to bet your money, there should be…
I know, I know; I haven’t said one optimistic thing in two, no, three years, at least. Believe me, I wish I had a reason to put my rosy goggles on, but it’s just that I have yet to find an outfit that would go with them. Verdi…
The next G-20 meeting should be interesting. The Fed is intent on buying more of its assets and unleashing more paper money into the already oversupplied financial systems. This has governments and central bankers of emerging markets very worried, particularly those whose red-hot economies are potentially about to…
The votes are in, and Americans have had their say. They are angry about a lot of things and they wanted their President to know it. So, they packed the House with more Republicans than this venerable institution has seated in the last 70 years. The public has…
The global financial agenda has been fairly steady this year: how to deal with the evil twins of deflation and the currency war. This is perhaps the first time since the end of WWII that world leaders are banding together again to rebuild the financial architecture after a…
In recent trading sessions, gold has kept up its steady upward pace, while silver rose to a 30-year high and palladium hit a nine-year high on Monday this week. The driving forces behind precious metals’ performances are simple to explain—the dollar is sinking and the demand for alternative…
It is not as if this is something hard to find; stocks in pain, that is. But I thought it might be interesting to shed some light on stocks not battered as much in the financial press—those that depend on federal spending, such as health and defense stocks.…
China is raising interest rates for the first time since 2007. The decision is both about politics and economics, because China wants growth, but it wants it to be quality growth, not quantity growth. But the prices of nearly everything, from food to labor to houses, are getting…
As of late, what is killing the U.S. dollar is the second round of quantitative easing, dubbed “QE2.” Ben Bernanke is no stranger to criticism, from economists to lawmakers alike, but the latest bout of criticism is not U.S.-centric only. Even international policymakers have started berating Bernanke for…
