Investing Tips

Beware of the Resource Curse of Boom and Bust Cycles

Brazil rode high during its commodity boom and has been licking its wounds ever since. Venezuela bought friends in the Caribbean with discounted oil and now its citizens cannot find milk, diapers or toilet paper in the stores. Beware of the resource curse of boom and bust cycles in commodity dependent economies. Bloomberg writes about the economic meltdown in one resource rich economy, Mongolia.
Mongolia, a mineral-rich and landlocked $12 billion economy bordering Russia and China, is staring at a full-blown balance of payments crisis. It’s caused barely a ripple in global financial markets, but the nation’s economic meltdown offers instructive […]

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What Would a Trump Presidency Mean for Stocks?

The 2016 presidential election campaign is rounding the bend and going into the final sprint to the finish line. This week is the Republican National Convention after which Donald Trump will be the official Republican presidential candidate. We have two thoughts about this. One is whether or not the stock market is a predictor of who gets elected and the other is what would a Trump presidency mean for stocks?
Stocks Predict the Winner
Bill Clinton is famous for having said, “It’s the economy, stupid,” in regard to how folks would vote in 1992. According to Bloomberg he might as we have […]

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What Are Discount Stocks?

In regard to the Brexit vote there is reference to discount stocks in the news. If you are looking for a fire sale on stocks because they are clearing out to make room for the next model, good luck. Then what are discount stocks? These are stocks that have been unjustly dragged down by a falling market and are likely to outperform in the short to medium term. A set of examples is offered by USA Today in their reference to a Brexit discount on 13 specific stocks.
The Brexit shock isn’t just making traveling to London a bargain. Savvy investors […]

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How to Invest in British Stocks

Depending on the results of the Brexit vote you may want to consider how to invest in British stocks. What is a Brexit and what does that have to do with British stocks? The United Kingdom will soon vote in a referendum to decide if the nation should stay in the European Union or leave it. Brexit = British exit from the EU. Would an exit from the EU be a good for bad thing from a UK perspective? Business Insider UK is starting to think that a Brexit is a good idea. This is despite numerous dire economic projections.
Seeing […]

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How Addiction to Debt Came Even to China

The last recession from which much of the world’s economy has not yet escaped was caused in the USA by US debt. The next and possibly worse recession will likely be caused by hugely excessive Chinese debt. Common thinking in the US is that China owns vast amounts of US debt and is economically “eating our lunch.” As one commentator remarked recently that way of thinking is “so last decade!” Prior to the 2008 market crash and onset of the Great Recession China indeed used to manipulate its currency to maintain a prosperous trade balance with North America, Europe and […]

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Do Takeovers Create Value?

Takeovers of one company by another are often touted as a way to create value due to company synergies and to reduce cost by eliminating duplicated functions. But do takeovers create value? The Bayer offer to buy Monsanto for $62 billion brings this thought to mind. It may or may not succeed as noted in The Wall Street Journal which says that Bayer’s Monsanto bid has fallen flat.
One problem with conglomerates is that there is something to dislike for everyone. Bayer’s bid to buy U.S. seeds and pesticides company Monsanto risks suffering the same affliction, at least as far as […]

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How to Invest in the Energy Sector

The energy sector has taken a beating since the plunge in crude oil prices. Eventually all markets bottom out and there are profits to be made on the rebound. The question is how to invest in the energy sector in preparation for an eventual recovery. According to Investopedia the energy sector is a stock category that relates to producing or supplying energy.
This sector includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, or integrated power firms.
Performance in the sector is largely driven by the supply and demand for worldwide energy. Energy producers […]

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What Are the Common Investing Mistakes?

It is unfortunately easier to lose money than to make money when investing. The famous investor, Warren Buffett, has pointed out that the first rule of investing is not to lose money and the second rule is to remember the first. So, how do you make money instead of lose it when investing? There are common mistakes that investors make and if you can avoid these mistakes your investing will proceed with fewer losses and more gains. What are the common investing mistakes? First let’s see what Investopedia says about the 7 common investor mistakes.
Of the mistakes made by investors, […]

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Sound Investment Strategies

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The point of investing is to make money or at least stay ahead of inflation. What are the best ways to make money through investments?
All of us work a day folks would […]

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Will Flight of Capital from China Help the USA?

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The markets are worried that a slowdown in China will throw the U.S. into recession. Although China became the number one growth engine in the world after the Great Recession there is […]

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