Profitable Investing Tips
Should You Invest in Defense Contractors as War in Korea Looms?
Defense stocks have outperformed the broader market by 15% to 10% since Trump was elected. These companies are in the news after the USA attacked a Syrian air base with cruise missiles and dropped the MOAB (Massive Ordinance Air Blast) bomb on an ISIS mountain tunnel complex in Afghanistan. Many believe that the weapons were used to send a message to North Korea regarding its nuclear and missile programs. The end result has been a huge elevation of tensions on the Korean peninsula while the US sends an aircraft carrier group to cruise off of Korea. Meanwhile Trump wants to […]
Will United Airlines Survive Their Public Relations Nightmare?
Airline stocks were doing so much better and airline stocks were better investments than they used to be. Then a paying passenger was dragged from a UAL flight to make place for 4 United employees who wanted a ride. The video that another passenger took of the incident went viral and the whole world knew what rats the United Airlines people were. The stock fell three dollars a share and then recouped half of its losses. Will United Airlines survive their public relations nightmare? Market Watch thinks they will.
PepsiCo Inc. and United Airlines have recently come under fire from consumers, […]
Pros and Cons of Foreign Investment in Africa
As populations grow in developing nations, infrastructure investment follows. This is especially true in parts of Africa. We wrote about the risks of foreign investment last week. What are the pros and cons of foreign investment in Africa? Wbug.com writes that booming populations are attracting lots of foreign investment.
Chinese President Xi Jinping is in the United States this week for his first face-to-face meeting with President Trump.
One thing that could come up during those meetings is foreign investment in Africa. The continent’s population is expected to double to 2.4 billion by 2050. Both China and the U.S. are investing heavily […]
What Are the Unique Risks Associated with Foreign Investments?
In our last two articles we asked why aren’t you investing offshore and wondered about a coming European economic boom. But if you are thinking of putting your money to work outside of the USA, what are the unique risks associated with foreign investments and how can you avoid them? Investopedia writes about the three biggest risks that international investors face. These are transaction costs, currency risks and liquidity risks.
The Cost of Investing Offshore
Likely the biggest barriers to investing in international markets are the transaction costs. Although we live in a relatively globalized and connected world, transactions costs can still […]
Is the European Economy Ready to Boom?
The equity markets always look ahead and right now they are growing tired of waiting for the Trump boom and looking to Europe. According to CNBC Europe is the hot new trade in the stock market.
Amid the political uncertainty of Brexit, mounting social turmoil over immigration and barely there economic growth, Europe has improbably emerged as the hot stocks trade this year.
The postelection rally in U.S. equities is looking tired as gridlock has sapped momentum in Washington. Investors have been looking for a better place to grow cash, and the European market is quickly becoming the favorite target.
“We believe that […]
Why Aren’t You Investing Offshore?
Buy low and sell high is the age old mantra for investing. With all the hype about bringing jobs back home, reducing taxes and spending on infrastructure, the best deals in stocks today are not in the USA but in foreign markets. Why aren’t you investing offshore? USA Today says investors should look outside the U.S.
With U.S. stocks trading in overvalued territory after their long rally, investors are likely to reap better returns going forward in places like the eurozone, and in emerging markets like Brazil, and Central and Eastern Europe. These foreign markets now have characteristics that suggest future […]
Watch Out for the Trump Economic Slump
Investors like predictability. Markets may be volatile but so long as they have a means of predicting where the market is going investors are generally happy. Such has been the case with the Trump bump, the stock rally based on the expectation of lower taxes, less regulation, repatriated corporate offshore cash and infrastructure spending. After all the USA has the same party in control of the White House and both houses of congress. Unfortunately, when the same party has all of the control they tend to fight among themselves such as happened in the Carter years when Jimmy Carter referred […]
What Happened to Trump’s Economic Agenda?
The Trump bump stock market rally is fizzling out. The market is asking what happened to Trump’s economic agenda as the new prez and House Speak Ryan promote their version of an Obama Care replacement. CNBC says that there will be a Trump tantrum looms on Wall Street if Trump’s first legislative push fails.
The Trump Trade could start looking more like a Trump Tantrum if the new U.S. administration’s health-care bill stalls in Congress, prompting worries on Wall Street about tax cuts and other measures aimed at promoting economic growth.
Investors are dialing back hopes that U.S. President Donald Trump will […]
Are Latin American Investments Going to Soar?
Despite continuing economic concerns in Latin America their stocks markets are doing well. Partly this is because of the commodity slump the reduced values in all nations that export raw materials. And, of course, there was the impeachment of Brazil’s president and Venezuela’s Chavez/Maduro meltdown. Nevertheless markets are doing well down south. CNBC offers three reasons why Latin American stocks will continue to soar.
If you just pay attention to the headlines, it looks as if Latin America has taken a turn for the worse. Data revealed last week showed that Brazil GDP contracted by 3.6 percent in 2016, prolonging its […]
How to Profit from Higher Interest Rates
The Federal Reserve is expected to raise interest rates again. The New York Times writes that the question is not why raise rates but why not.
The unemployment rate, one of the gauges the Fed watches most closely, fell to 4.7 percent in February, a healthy level by historical standards. Inflation, the other gauge, finally appears to be reviving. Prices rose 1.9 percent over the 12 months ending in January, close to the Fed’s 2 percent annual target.
The Fed continues to hold its benchmark interest rate at a level intended to stimulate economic growth by encouraging borrowing and taking risks. It […]