U.S. News: Why Resource-Rich Economies Are Really Cursed

By SIMON CONSTABLE

When it comes to investing in overseas markets, beware of countries that are heavily endowed with natural resources. 

Contrary to popular belief, if an economy has lots of oil, iron ore, natural gas, timber or other industrial materials, is usually an economic curse rather than a blessing.

The problems are multifaceted, but for investors it can make investing in resource-heavy economies something of a roller-coaster ride. Some examples of countries that have recently seen an economic swoon include Australia, Canada, Brazil, Russia and Saudi Arabia. Read more here.

Barron's: Oat Prices Poised to Rebound

By SIMON CONSTABLE

Oats aren’t just for horses and quakers anymore. investors should get a helping of them, too.

Prices for the grain, which is used as animal feed as well as breakfasts, started weakening steadily in 2014 and have since reached levels not seen since the 2008 financial crisis. In early 2014, oats fetched more than $4.60 a bushel compared to $1.83 recently.

The fact that prices are so low by historical standards suggests a bounce is in the offing. As economists say, the cure for low prices is low prices. Read more here.

Photo by Łukasz Rawa on Unsplash

U.S. News: 5 Reasons Why You're Bad at Investing

By SIMON CONSTABLE

Every generation has its share of would-be stock market traders hoping to strike it rich.

There have also been more than a few people with dreams of being astronauts, race car drivers or Olympic gold medalists. Those would-be sportsmen and sportswomen have a lot in common with wannabe top-level traders. 

The chances you'll successfully make it in either field are slim. Read more here.

TheStreet: Small Investors Are Worried, Which Means You Shouldn't Be

By SIMON CONSTABLE

You wouldn't know it by looking at all the dire news headlines, but there are plenty of reasons to be bullish on the stock market right now.

So forget the naysayers and their concerns about the U.S. presidential election, the Federal Reserve's money-printing and Vladimir Putin's sabre-rattling. They are all distracting you from making money.  Here are some key points:

TheStreet: Bond Rally Points to Higher Global Growth -- Here's How to Take Advantage

By SIMON CONSTABLE

Great news for the global economy: Risk-taking is back on.

The crucial piece of evidence can be found in the bond market, by looking at how much more lenders charge to extend credit to corporations than to the U.S. Treasury. America gets to borrow at the so-called risk-free rate. Corporations pay extra. 

The higher amount, known as the credit spread, has shrunk dramatically over the past few months. Companies with a BBB-rating, which is moderately risky, have been paying a third less in premium than they did earlier in the year. Read more here.

Forbes: ObamaCare Now On Life Support And You Are Going To Pay

By SIMON CONSTABLE

ObamaCare (aka the Affordable Care Act) is now on life support, and guess who is going to pay to resurrect it?

You are.

One way or another it will be the American people who pay.

Here’s the background and why your hard earned cash is now even more at risk than usual. Read more here.

John Batchelor Show: Talking Brexit / Gold

By SIMON CONSTABLE

John Batchelor kindly invited me to be on his fantastic radio show last night. We talked about the need for Britain to get its swashbuckle back on and the flood of money being used to buy gold.

Photo by Dolapo Ayoade on Unsplash

U.S. News: How to Save Thousands of Dollars to Invest in the Future

By SIMON CONSTABLE

So many people fail to invest in stocks and other securities because they don't have the cash to invest. Or at least they think they don't. But the truth is that there are many ways to raise cash that might be staring you in the face. Here are a few ideas.

ABC News Now: 2010

By SIMON CONSTABLE


 
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TheStreet Video: Mozilo's Cereal Ad Revealed

By SIMON CONSTABLE

Blast from the past. A collaboration between me, Aaron Task, and Dee Robertson when we worked together at TheStreet.

Forbes Video: Why Stocks Look Way Overvalued -- S&P's Stovall

By SIMON CONSTABLE

When it comes to investing one of the hardest things to do is to buy stocks at the right price. Sometimes there are periods like the mid 1970s when equities were massively undervalued. Other times like in 1999 and 2000, the opposite was true. In the latter period it was years before investors who bought overvalued stocks got their money back, if ever.

What about now? Probably overvalued, if you believe Sam Stovall, U.S. equity strategist at S&P Global Market Intelligence. That conclusion isn't based on a gut feel but rather the result of deep analysis of historical data.

He explains his thoughts in this video.

Forbes Video: Are We There Yet? Have Bond Yields Hit Bottom?

By SIMON CONSTABLE

The bond market has been in a three-and-a-half decade bull market as the cost of borrowing money has steadily fallen. Bond prices and interest rates move in opposite directions.

With rates now at historic lows, the question is simple: Can they go lower, or are we at the bottom? Or as the kid in the back seat of the car repeatedly says, are we there yet? Even a few years ago some pros were saying that interest rates could not go lower, and yet even since then the cost of borrowing has dropped.

At least some observers think we have arrived at the bottom, and hope that rates start to rise soon. One such market professional is  Edward Dempsey chief investment officer at Pension Partners.

Watch, listen, and learn as he explains his thoughts in this video.

TheStreet: Brexit-eers Need To Be 'Swashbuckling' on Trade -- It's Made the U.K. Rich Before

By SIMON CONSTABLE

When it comes to Britain's exit from the European Union, a debilitating case of 'nannyism' seems to have afflicted some otherwise smart people.

It's limiting their view of how that country should deal with international trade: What's needed is a bold and daring approach, one like the brave and swashbuckling Brits of yore were famous for. 

Let me explain.

Forbes Video: Will Investors Get Roasted In Turkey?

By SIMON CONSTABLE

After the failed coup in July, Turkey still makes headlines, but should you worry? Certainly the government crackdown looks brutal with multiple news organizations and educational institutions being shutdown, plus many people being rounded up by security forces loyal to the country’s ruler Erdogan.

What’s happening certainly makes the country look like a tough place to live right now. But the for Wall Street the question is how the crackdown, which seems likely to continue, will  affect investors in Europe, which after all is on Turkey’s doorstep. Edward Dempsey, chief investment officer at Pension Partners explains his thoughts in this video.

TheStreet: Gold Rush Fuels 'Best Year Ever' for Precious Metals Funds

By SIMON CONSTABLE

Last summer, the commodities sector was frozen in a half-decade long bear market with few signs of a thaw in the near future.

Now, it's hot once again, with gold and silver funds set to see record-breaking inflows of cash. Read more here.

Forbes Video: Why The Most Hated Bull Market Is Most Welcome

By SIMON CONSTABLE

There is a lot of skepticism among investors about the years long bull market in stocks. Questions continually arise about valuation (the market is too expensive,) monetary policy (the market is living on cheap money,) and the huge imbalances in the economy (the market doesn’t reflect the fragility of the U.S.)

But the fact that so many are airing their worries and anxieties about the market tells other people that there is still some more to go. Sam Stovall, U.S. equity strategist at S&P Global Market Intelligence, explains his thoughts on why negative sentiment about stocks is actually bullish in this video.

U.S. News: Why You Should Buy More Foreign Stocks

By SIMON CONSTABLE

It's a sad fact that even those Americans who have taken the wise step to invest in the stock market are limiting their investment opportunities. Most simply don't own enough foreign stocks.

Once upon a time that may have made sense. After World War II, much of the world's industry was devastated. What remained as best-in-class businesses were overwhelmingly American corporations. But over the past few decades the rest of the world has caught up.

"When some American workers wake up in the morning they might turn on a Korean TV, and then drive a German car to work," says Brian Levitt, senior investment strategist at Oppenheimer Funds in New York. "It doesn't make sense that they'd then limit themselves to just U.S. investments."

Read more here.

WSJ: Edward Conard On Why Everything You Know About Economics Is Wrong

By SIMON CONSTABLE

Blast from the past, Ed Conard
 

WSJ: Why Fund Investors Could Roil Bonds

By SIMON CONSTABLE

Could the reactions of mutual-fund investors to Federal Reserve policy lead to turmoil in the bond market?

Maybe so, according to a new working paper. It says there are incentives for “run-like behavior” among investors in fixed-income mutual funds if the Fed unexpectedly raises interest rates or raises them more than expected. Read more here.

WSJ: What ‘Multiple Contraction’ Means for Investors

By SIMON CONSTABLE

If the economy starts to slow further, investors likely will start talking about “multiple contraction.” It is important to anyone invested in stocks.

Typically, the term refers to what is going on with the price/earnings multiple of stocks. The P/E tells investors how much they are paying for a stock in earnings per share. Read more here.

TheStreet: Why Best and Worst Mutual Funds Have More in Common Than You Think

By SIMON CONSTABLE 

What do the best and the worst performers have in common?

Not much, in most professions. But when it comes to managing mutual funds, the surprising answer is quite a lot. Read more here.

TheStreet: Obamacare Still Sickly, After All These Years

By SIMON CONSTABLE

Six years since it was signed into law, President Obama's signature healthcare program remains somewhat sickly.

The system, dubbed Obamacare for its chief proponent, continues to leave many young people uninsured and could actually be pushing the price of vital pharmaceuticals far higher than they would be otherwise, according to two recently published reports. Read more here.

WSJ: Barry Ritholtz in the Big Interview

By SIMON CONSTABLE

Blast from the past. Barry Ritholtz in the Big Interview.

 

WSJ: How A New Pope Is Chosen

By SIMON CONSTABLE

A blast from the past...How a Pope is chosen.

U.S. News: Why It Pays to Be Careful When Rebalancing a Portfolio

By SIMON CONSTABLE

With Britain moving to leave the European Union, effects of the tumult are sure to show up in your investments, at least for a while.

So should you rebalance your portfolio immediately to take advantage of opportunities? Read more here.