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The quantitative easing that the Fed provided may have helped debt and equity markets.
Mark Zandi, chief economist at Moody’s Analytics, said the QE2 bond purchases gave a sagging economy a lift by slightly reducing borrowing costs for businesses and consumers and by raising stock prices to make people feel wealthier. Still, it didn’t much energize
Continue reading Debt, Equity and QE2 – Bond Purchases May Have Helped
First-quarter earnings from equities across the globe have beaten forecasts so far. A self-perpetuating cycle of wealth growth, productivity increases, and perhaps job growth, appears to be underway.
Since April 11, 71 percent of MCSI World Index members reporting results have topped analysts’ estimates for earnings per share, according to data compiled by Bloomberg. Profits of
Continue reading Global Investment, Productivity and Job Growth Ramping Up
Investors who trade more actively tend to do less well than more passive investors. This is probably because active investors, who check their portfolios every day have more emotional, instinctive and short-term reactions to market volatility.
To improve your investing you might want to read less. Investors are bombarded with information, with highly emotive market ‘noise’,
Continue reading Investing: Passive and Reflective Investors Do Well – Help Your Portfolio and Investments
Emerging-market stocks rose for a third day as investors reacted to news and interest to invest shot up. Regulators gave banks as long as eight years to meet new capital rules and Chinese industrial production surged in August.
The MSCI Emerging Markets Index added 2.1 percent to 1,033.97 at 1:44 p.m. in New York, heading to
Continue reading Emerging Markets: Stocks Gain
Are you interested in a return on investment over the long-term? If so, invest in an emerging market ETF or a growth fund.
Or when you invest is your timeframe now? If so, you may want to buy one of these international value funds:
Columbia International Value Z
DFA International Small Cap Value – Institutional
DFA Tax-Managed International Value
Continue reading How to Invest for Growth – Use Your Timeframe – Emerging Markets, International, Growth
Is it a “new normal” or simply a reflection of better growth and earnings prospects? Regardless, emerging-market stocks are trading at the highest valuations relative to advanced-country shares in more than two years as faster economic growth.
The MSCI Emerging Markets Index is valued at 14.1 times reported profits and 1.9 times net assets, compared with
Continue reading Emerging Markets are Hot – Low Debt and High Growth Prospects
As concerns about deflation grow, where should you go with your investment dollars?
Deflation is a sustained period of falling prices.
Some analysts recommend that investors buy bonds, which can do better during deflation.
The problem with bonds right now is that the interest rates are extremely low. There’s so little downside to rates, and if rates climb
Continue reading If Deflation Comes Where Should Your Investment Dollars Go? Gold, Bonds, Cash, Stocks?
Looking at investing oversees makes sense for a number of reasons, the most important of which is broader diversification. By going international, the potential gains for your portfolio and your retirement are no longer tied exclusively to the performance of the U.S. economy and financial markets.
And since markets in different countries don’t always move in
Continue reading Investing Internationally for Your Retirement Fund – Minimize Risk in Your Portfolio
Economists and market watchers are divided on the need for more government stimulus and the best way to handle a portfolio in a tepid market on a modest decline.
Jeffrey Kleintop, chief market strategist at LPL Financial, said disappointing economic data didn’t signal a double-dip recession, but a slowed pace of an already uninspiring recovery.
“Much of
Continue reading Investing Strategy in the New Normal: Equity, Global, Emerging Markets
A lot has to go wrong to justify today’s rock-bottom bond yields
When Japan slid into deflation in the mid-1990s bond investors were caught unawares. As late as 1995 yields on government bonds, a haven in times of deflation, were still approaching 5%. Investors today are not about to repeat that mistake. Inflation may be positive
Continue reading Government Bonds – Should you buy TIPS instead?
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