Steve Hanke is a professor of Applied Economics at The John Hopkins University and also a Senior Fellow at the Cato Institute in Washington, D.C. Due to his wide influence, expertise on international monetary affairs, and advisory role to numerous governments, Professor Hanke was named one of the twenty-five most influential people in the world by World Trade Magazine.
"They" being the market. You or your broker or your friend has this great investment “guy” that can come up with a whole host of reasons why the market should zig or zag. When the market goes against us we scramble to come up with reasons why it shouldn’t be happening or why the market is “wrong”.
Puru Saxena is an investment adviser for individual and corporate clients in Hong Kong as well as a widely cited expert and regular guest on CNN, BBC, CNBC, and Bloomberg. In the following recent interview with Financial Sense Newshour, he argues that Hong Kong, as well as China, is in store for a massive real estate bust and recession. When will this happen? When the U.S. starts raising interest rates.
The risk-on versus risk-off trade, aka RORO, has been the modus operandi (MO) of many investors over the past several years. The Fed is going to goose the market? I’m going all-in the beta trade. Europe is imploding and the euro will cease to exist tomorrow? Sell, Sell, Sell!
The market continues to march higher in 2013 as the market’s long-term breadth and momentum remain strong across nearly every sector. However, the weakening in the daily numbers for breadth and momentum, particularly in the cyclical sectors, suggests near-term caution as we may be in store for a pullback similar to September-November of 2012.
Also, Is Mexico the Next China for U.S. Imports?
Jeffrey Saut, Chief Investment Strategist at Raymond James, spoke with Financial Sense Newshour today to offer some perspective on the markets with a few key insights from their latest institutional investor conference.
While the dollar has come under severe pressure for many years, there have been several times when our dollar has gone on extended moves higher. Those moves higher typically coincide with slower growth outside of the U.S. and more often with some kind of crisis abroad.
Despite the ongoing recession call by the ECRI, the U.S. economy has continued to march forward from the depths of 2009 and, to the surprise of many, even accelerated this year. The question is, where do we go from here? Currently, in surveying both the coincident and leading economic data below, there still doesn't appear to be a recession on the immediate horizon. Furthermore, we may actually see GDP accelerate in 2013, which would be favorable for the U.S. stock market.