Question: Why are there so many ETFs? Answer: ETF providers tend to make lots of money on each ETF so they create more products to sell. The large number of ETFs has little to do with serving your best interests. Below are three red flags you can use to avoid the worst ETFs: …
I have been bearish on China manufacturing and growth in general for years. It is no surprise to me that news is generally negative. For example, on news today that China’s PMI “unexpectedly” declined Yahoo!Finance reported China Factories Falter, Commodities Take the Hit. Activity in China’s factory sector seemingly contracted at the fastest pace in 15…
This week in the WSJ, Justin Lahart notes “China Wind Chills U.S. Earnings”, and presents an interesting graph of import prices, which inspired me to look more closely at the issue. In Figure 1, I reproduce the graph, with a slightly longer time span, augmented with the Chinese producer price index. Figure 1: Year-on-year percent change (in…
The Euro edged above the $1.10 level on Thursday, as FX traders still consider abandoning ship on the US Dollar. In the past month, the US Dollar has surged nearly 5% against the Euro, but this week its positive momentum has faded, with analysts expressing some wariness that the year-long rally might be finally reaching…
Well if you ever needed PROOF that gold is not money but rather simply an asset class, all we need do is look at what governments are doing. They are hunting for anything of value. We are likely going to see a migration of assets from Europe to the USA as took place prior and during World War I…
Manufacturing PMI numbers coming from both sides of the Atlantic During the session on Friday, there will be Manufacturing PMI numbers coming out of Germany, France, the European Union, and of course the United States. With this, it appears that the markets will focus on transatlantic movements, and as a result we are paying attention…
“No one today likes truth: utility and self interest have long ago been substituted for truth. We live in a nightmare of falsehoods, and there are few who are sufficiently awake and aware to see things as they are. Our first duty is to clear away illusions and recover a sense of reality. If war…
If you are looking for a “canary in a coal mine” type of warning for the entire global economy, you have a whole bunch to pick from right now. “Dr. Copper” just hit a six year low, Morgan Stanley is warning that this could be the worst oil price crash in 45 years, the Chinese economy…
While the markets traded down today, there were certain stocks that did really well. One group was the same group that got pulled down by AAPL yesterday. These stocks were CRUS, SWKS, NXPI, and AVGO. But, after the market yesterday, CRUS crushed its earnings estimates, sending its stock up 16.33% today! SWKS was up +3.49%….
The Great Recession and its aftermath was actually the best of times for countries with natural resources to sell. The US, Europe and Japan ran record deficits and cut interest rates to zero or thereabouts, sending hot money pouring into mining and energy projects around the world, while China borrowed (as it turned out) $15…
