Tag archives: Economy

Should You Invest In Fast Growing Economies?

Last update on July 10, 2014.

 

Many investors assume fast growing economies will have fast growing stock markets. It’s a perfectly rational assumption. After all, you've probably heard investment gurus or fund managers on TV talking about the growth potential of developing countries like Brazil, India, or China. If these economies are destined for huge growth, won’t I see great returns if I invest there?

It turns out that this investment strategy hasn’t worked very well in the past, and probably won’t in the future either. If you’re surprised by this, you’re not the only one. Many people believe that economies and stock markets ...

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The Chinese Growth Engine Is Sputtering

Last update on Feb. 20, 2014.

"The major uncertainty facing the world today is ... the future direction of China. The growth model responsible for its rapid rise has run out of steam." - George Soros

No one has a better reputation for predicting global economic trends, than George Soros. Known as the "Man who broke the Bank of England", he became one of the richest men in the world by betting his fortune on his predictions. In the investment world, there are many people who can talk a good tale, but there are very few who can back up their talk with actual results. Soros is one ...

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Weekend Roundup: Economy, China, Grand Bargain

Last update on Aug. 2, 2013.

Bargain tag

Every Friday, we bring you noteworthy news articles that affects your investments.

Canadian GDP Disappointed

The economy is still growing, but barely. Looks like the Energy sector is dragging down growth. More troubling times for Canadian stocks ahead?

US Job Growth Disappointed

If there's one economic data point that investors keep a close eye on, it's this one. Many people were hopeful of a good number after a string of other good economic numbers. The disappointing jobs number sent stock markets down, and eleveated bond markets as investors expect the Fed to delay the taper.

China To Conduct ...

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5 Ways The Fed's Tapering Is Hurting You

Last update on July 4, 2013.

In my last post, I explained that 'Quantative Easing' isn't really money printing per se, but rather an asset swap - you're exchanging long term bonds for cash. In the process, they've driven down long term interest rates to historical lows.

For the last few years now, The Federal Reserve (the central bank of the U.S. with the authority to print money) has been buying up long term debt at the pace of $85 billion per month.

That's a lot of dough.

On June 19th, the Federal Reserve (i.e. the 'Fed') released a statement, and ...

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Why 'Quantitative Easing' Isn't Money Printing

Last update on July 1, 2013.

A couple of years ago, you couldn't read financial news without reading someone say

'Buy Gold! The U.S. is printing Money! Hyperinflation, here we come!'

2 years later, here we are. Gold has gone back down from a high of about $1,900 an ounce, to about $1,200 an ounce where it sits today.

On the inflation front, hyperinflation hasn't materialized at all. Just take a look at this graph. In fact, the Federal Reserve (i.e. the entity that is supposedly 'printing money'), is doing everything it can to fight deflation, which is the opposite ...

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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 ...

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