By SIMON CONSTABLE
Investors remain bearish by a factor of two-to-one. That’s down from recent readings but still elevated, and is possibly a sign that the market is nearing a bottom.
According to a recent survey from the American Association of Individual Investors, 47% of investors were bearish, meaning they expected stocks to keep falling, for the week ending June 29. That’s more than twice the 23% portion of investors who were bullish. Read more here.
By SIMON CONSTABLE
Six months and what a difference.
After years of perpetually rallying the tech-heavy Nasdaq has slumped. Actually, it's worse than that.
Yet during the same period, the energy sector has soared. Read more here.
By SIMON CONSTABLE
Just when you thought China might be back on track, a key economic indicator suggests the opposite is coming down the pike. Read more here.
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China's President Xi
U.S. Department of State from United States,
Public domain, via Wikimedia Commons
By SIMON CONSTABLE
It looks like Britain is about to resort to protectionism. Prime Minister Boris Johnson has proposed raising or extending tariffs on imported steel from a variety of countries including China, Turkey and India.
While the reasoning behind this plan may look sound, it sets a bad precedent for a government-run by the Conservative Party, usually a champion of free trade. Read more here.
By SIMON CONSTABLE
Much of the UK press is now sounding the alarm that the British government’s thoughts of pulling out of the Northern Ireland protocol will unleash economic hell on the UK.
The idea behind the Northern Ireland protocol is complicated. But the essence of it is to avoid a normal or ‘hard’ border between Northern Ireland and the Republic which is in the European Union. The second part of this involves there being some form of customs checks between mainland Britain and Northern Ireland.
It’s that latter bit that isn’t working and which Prime Minister Boris Johnson= seems to want to end. The British government says it can do this legally while the EU (and much of the press) is outraged by the idea.
The worry is that the EU also rips up its side of the trade agreement with the UK so effectively letting off an economic hand grenade.
Yet, there is a solution to this problem that many countries use. It works this way. An agreement is made and agreed to, but then the various parties simply do not enforce it. Read more here.
By SIMON CONSTABLE
By SIMON CONSTABLE
An ugly word has been shooting around the media like it's going out of fashion: Recession, usually considered as two back-to-back quarters of a shrinking economy.
Judging by recent headlines and rhetoric from experts, you’d think we are already there. But as with many things, the truth is more nuanced. To be sure, no one in their right mind wants to see a recession, as these periods of malaise usually coincide with higher unemployment and lower corporate profits. Read more here.
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By SIMON CONSTABLE
Just look at the VanEck Merk Gold Trust (OUNZ ). OUNZ, the first gold-backed ETF that delivers physical bullion to investors when they sell shares, is up 0.34% year-to-date. Conversely, the S&P 500 is lower by 23%. Translation: OUNZ is doing its job for investors in what’s proving to be a turbulent 2022.
In this climate, OUNZ’s performance is worth bragging about because it’s vastly superior to those of other major asset classes.
“Gold has once again shown itself to be a solid haven investment in the face of market turmoil. Even though bullion prices have dipped a little this year, they have massively outperformed other major asset classes such as stocks, bonds, and cryptocurrencies, which have all taken a beating,” reported Simon Constable for Barron’s.
Read more here.
By SIMON CONSTABLE
Gold has once again shown itself to be a solid haven investment in the face of market turmoil. Even though bullion prices have dipped a little this year, they have massively outperformed other major asset classes such as stocks, bonds, and cryptocurrencies, which have all taken a beating.
It should be a reminder to prudent investors to consider allocating a portion of their portfolio to the yellow metal. Read more here.
By SIMON CONSTABLE
株に投資すればインフレによる資産の目減りを避けられるのではないか。もしそんなふうにお考えだとしたら、残念ながら間違いだ。おそらく、逆に資産をさらに減らす結果になってしまうだろう。
「株式は投資家をインフレから守ってくれるというのは、長期的にみても神話にすぎない」。調査会社HCWEアンド・カンパニーは最近のリポートでそう警告する。
Read more here.
By SIMON CONSTABLE
You can almost hear the sound of falling lumber prices, with probably more to go. The Federal Reserve’s slow-but-steady war on inflation will crimp demand for wood used in the home-building industry, sending prices down by almost 50%, experts say.
“With reduced disposable income and higher interest rates, it’s very hard to see the confidence for buying homes at these prices,” says Shawn Hackett, president of Hackett Financial Advisors. Read more here.
By SIMON CONSTABLE
On the surface, it sounds like the early 1970s, with shortages at gas pumps and homeowners suffering through soaring heat prices. But this isn’t the energy crisis of 1973, when a group of oil-rich Arab countries embargoed oil exports to the US and other countries. It’s actually what is happening in large pockets across the globe, only it has a new name: energy insecurity. Read more here.
By SIMON CONSTABLE
Natural-gas prices could jump by 15% or more by year-end as supplies fall far short of demand, experts say.
“Increasing supply is now getting trickier, and we really don’t see much of a jump until this time next year,” says Peter McNally, an energy expert at Third Bridge. Read more here.
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