Leading Economic Indicators Point to Slower Growth – Not Double Dip (Yet)
Joe Day | August 25, 2010
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…
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The “Basics”?
Joe Day | August 24, 2010
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…
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Europe’s Recent Growth Numbers – Positive?
Joe Day | August 13, 2010
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)
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Venture Capital Rebound in Washington State
Joe Day | July 19, 2010
Here is an encouraging article regarding venture activity in the area according to a report out by VentureSource: (Click here to read article)
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Financial Reform Package
Joe Day | July 1, 2010
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:…
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Understanding Currency Risk
Joe Day | June 15, 2010
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…
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The 10 most likely contributors to the next market panic
Joe Day | June 15, 2010
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,…
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Governments and the Economic Crisis
Joe Day | May 28, 2010
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…
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Business Activity in US Continues Expansion in May
Joe Day | May 28, 2010
Below is a link to a Bloomberg article that highlights the recent report from The Institue for Supply Management-Chicago Inc. It publishes a business barometer that signals economic expansion or contraction, depending on whether the number is over 50 or below 50, respectively. Its latest number is 59.7 and shows, while the Euro-zone continues to cause much uncertainty for the global markets, the US recovery is still on track. (Click…
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