Weekend Roundup: Taper, China, US Economy and Gold

Last update on June 28, 2013.

Chinese Yuan

On every Friday, we'll bring you noteworthy articles that affects your investments.

Krugman blasted the Fed for the 'taper'

He argues that the Federal Reserve jumped the gun. By indicating that they're thinking about paring back bond purchases, the Fed effectively drove long term interest rates higher at a time when the economy still needs it.

Investors were worried about China's financial sector

In China, not everyone can get a loan from a proper bank. As a result, many Chinese businesses turned to alternative institutions to borrow money. Now, there are fears that the shadow banking system is under stress.

In the meanwhile, the U.S. economy is doing great

Many economic numbers beat estimates, leading some to think that the U.S. economy is doing better than they thought.

Gold got smacked (again)

It's now down to below $1,200 an ounce, down from $1,400 just a month ago, and a far cry from $1,900 we saw 2 years ago.

Investors are pulling cash from emerging markets

Here was a popular trade among wall street traders: borrow U.S. dollars cheap, and invest in emerging markets. Now that interest rates on those borrowed money are going up, we're seeing the reverse effect in a hurry.

Extra:

Does expensive wine really taste better than cheap wine?

Apparently, the answer is no. The author makes some compelling arguments. 

Do you have some questions after reading any of the articles? Leave me a comment, and I'll think about doing a more in-depth article.

Have a great weekend.

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