Plug in hybrids may lead the way for next energy bubble
Photo Credit: Toyota
As the oil market cools from its high of $147 back into the $115 area, investors are seeking alternatives. Though the oil market might be making a slight comeback on geopolitical occurrences and traders finding a bottom in the market, it’s time to start thinking about the next energy bubble: the electricity bubble.
Hybrid [...]
Are mortgage backed securities finally a good buy?
Photo Credit: Banks.com
The mortgage market has been nothing but extremely volatile over the past year. Traders have beaten down the stocks of companies carrying heavy amounts of sub-prime mortgage debt and virtually every name in the banking industry, whether exposed or unexposed to the dangers of faulty loans.
However, we might be telling a different [...]
Chinese backlash on US currency stance could be detrimental
Photo Credit: Time, Inc.
Though China has been relatively untouched as it pertains to politics, the hefty Chinese trade surplus with the United States is slowly being challenged by more and more politicians. Recently, both Obama and McCain have touched on Chinese currency issues and the large trade surplus with two different points of view.
Obama [...]
SEC to review short selling rules
Photo Credit: MyShareTrading.com
The SEC has announced that it will be reviewing and revising the short selling rules that currently exist in the financial markets. Naked short selling has come under scrutiny by both the media and the average investor trying to comprehend why the markets have fallen like they have.
Naked short selling is the [...]
China to try its luck with own economic stimulus
Photo Credit: China Daily
With its stock market absolutely tanking, the Chinese government shall attempt its own economic stimulus - both in its equity markets and perhaps in its tightened monetary policy. Traders are expecting that China will support the market by pumping money into the exchange, and the government might even lower interest rates or [...]
China forces consumers to think small cars
Photo Credit: The Boston Globe
New taxes on large engined cars are in the mix for Chinese consumers. China will double the tax for cars with engines larger than four liters starting September 1 of this year to 40% of the purchase price. Other taxes on slightly smaller engines will jump as well; taxes on engines [...]
Jim Rogers predicts a 20 year boom in commodities
Photo Credit: China Post
When Jim Rogers speaks, the market listens. Recently, he made very interesting comments surrounding the fundamentals of commodities. Even as the price for commodities such as oil, gold and silver have fallen steadily off their highs, he’s still bullish on the trend, even going as far to say the current bull market [...]
Falling commodity prices will likely slow interest rate hikes
Photo Credit: Bloomberg
In the last month, Ben Bernanke must have undergone significant stress regarding the decision for interest rate policy. Since Ben Bernanke kept rates at 2%, the US markets have favored decently, while the commodities markets have dropped considerably - which is just the kind of response the Fed board would love to see [...]
China’s stock market should rally on inflation
Photo Credit: Reuters
Though China is currently waging a war on rapid inflation, the stock market continues to tank, even though the inflationary factors are nothing but positive. It is important to note that the Chinese inflation problems aren’t from internal inflation, but rather from its huge foreign cash reserves as a result of a large [...]
Chinese retail sales rise by 23.3 percent
Photo Credit: YourBusinessInChina.com
Though the Chinese government is worried about inflation, Chinese consumers are happy to spend the excess money they’ve been finding. With a government reported inflation rate of 6.3% and consumer spending growing by 23.3%, there is still plenty of health in the Chinese economy, regardless of what the stock markets and analysts may [...]
