Excellent observation article by The Economist regarding the nature of the US unemployed. Points to the fact that high unemployment can be a function of structural issues facing labor markets, not only lack of demand on behalf of employers. This calls into question the use of further stimulus to lower unemployment rates. (Click here to read article)
I’m posting a link to a timely piece put out by Fidelity Management & Research Co. It assesses the various contributions to Real GDP Growth by determining if growth was driven by personal consumption, business investment, net exports, etc. and what the trend has been over previous quarters. It also spends some time looking at what economists call the LEI’s (Leading Economic Indicators). These indicators are often used to asses…
How many people out there, feel they don’t understand the “basics” of investing? Even the word “basic” is elusive to most. By “basic” I mean do you understand some of the following concepts: risk vs. reward growth investments vs. income investments definitions of terms like equity, bond, interest, dividend, mutual fund, index fund, exchange traded fund, etc. diversification vs. correlation vs. asset allocation My sense, is most have heard the…
(Click here to read article)
Great article about Germany, the European Union’s most industrious member, and their recent GDP numbers… growth for the country was 2.2% for Q2 (annualized rate of 9%), according to The Economist. These numbers seem surprising given the regions recent sovereign debt crisis, but as the article highlight, Germany’s ability to export its prized “highly-engineered” products, seems to be helping the entire region. (Click here to read article)
Here is an encouraging article regarding venture activity in the area according to a report out by VentureSource: (Click here to read article)
I’m posting an e-mail I received this morning about what the CFA Institute has been lobbying for with regards to relevant financial regulatory reform. It highlights the CFA Institute’s commitment to the integrity of the financial industry and the investment advisory profession. It also highlight the aspects of the bill that are the most important for consideration, to help further better operating markets in the future: Dear CFA Institute Member:…
This is a great article from Morningstar about “Understanding Currency Risk”. In my reviews with clients I am constantly discussing the currency risk exposure we have in some of our investments. Namely, the Capital World Bond Fund from American Funds. However, as this article points out, the same currency risk can be seen in other securities as well, including stock funds. So, while the Euro is down about 12% in…
I think this is a very insightful (and not overdone) article about investor psychology and what could trigger the next market panic. Most of the items listed here I agree with, except maybe for the technical “death cross”, which is primarily due to that fact that I don’t subscribe to technical analysis. I’ve pasted the article from RIABiz.com, an industry news source, and its guest columnist Rob Isbitts (June 15,…
This opinion article from The Economist highlights the precarious fiscal positions of governments around the world. While these governments have largely been successful in staving off a deeper financial crisis last year by coordinating efforts to stabilize banks and the financial sector, they are now themselves a risk. It highlights the difference in fiscal situations between Germany, UK and the US. Notably, the US has the most wiggle room fiscally…
