New regulation attempts on the derivatives market could threaten the earnings of insurance companies and add new strain to the corporate debt markets. A move by US legislators to de-leverage the derivatives exchange could bring about incredibly expensive margin calls. The Basis of Regulation A financial reform bill moving throughout Congress has one simple goal: … Read moreRegulated Derivatives Threaten Insurance Companies and Debt Markets
As a nation, China’s consumption of coal continues to explode, thanks to a new stimulus package that gears the nation’s production towards infrastructure development, a relative sinkhole for energy. Chinese Coal Consumption Just seven years ago, China exported approximately 94 million tons of coal and imported around 10 million tons. Fast forwards to 2009, and … Read moreCoal Stocks are Still a Hot Chinese Bet
Concerns over a contagion in the nations of Greece and Spain have plenty of support. However, it isn’t debt owners that should be concerned, but the economy of any nation currently using the Euro. Why the Euro is Weak The greatest concerns centering on Greece and Spain’s debt troubles come from the European Central Bank, … Read moreEuropean Contagion Fears Come with Reason
Investors looking for better returns or terrified with the growing US debt have seemingly abandoned government paper. So much capital has left government bonds that several triple-A corporations offer lower bond yields than the government that taxes them. Government Debt Loses Steam Although Treasuries emerged as the global safe haven after the financial crisis of … Read moreWhy Treasuries Have Lost Their Luster
After Obama’s health care plan was signed into law, a number of companies have stepped forward to assert that their earnings may take a dip due to new taxes and requirements on their health care programs. Although the charges will be on the books for just one year (afterwards companies will account for the higher … Read moreHealth Warning! Healthcare Tax Could Thwart Improving Earnings
Although 2009 was loaded with recovery green shoots, mostly in battered industries such as finance and retail, investors are best to be diversified during the later stages of recovery. Green Shoots Give Way to Forests When green shoots give way to forests, stocks that lagged the market during the bull run typically move with momentum, … Read moreThe One Way to Prepare Your Portfolio for the Recovery
Though down and out following the collapse of the bubble in 2007, real estate could be back in vogue as an investment. Lower prices, lower interest rates and an improving economic climate could set the stage for another great boom in real estate investing. Real Estate as an Investment in 2010 Anyone who has … Read moreCould Real Estate Be the Investment for 2010?
Following the release of $585 billion into infrastructure investments, China’s economy has bounced back quicker and with more force than any other economy in the world. However, with so much capital flooding the infrastructure sector and trickling into many others, inflation remains a consistent threat. The Origin of Inflation Much of the record high inflation … Read moreWhat Post-Stimulus Chinese Inflation Means for Your Investments
Please understand that this article is about more than safeguarding your money; it’s about saving you headache and heartache. It’s about giving you peace of mind. Before I explain, please allow me to ask a few questions: Have you given much thought about the money in your banking accounts lately? Do you know if it’s … Read moreMore Than 130 Banks Will Have Failed by the End of 2009. Is Your Bank Safe?
When investors think of “risk aversion,” typically treasury bonds, corporate bonds and municipal debt rank highly on the list. In today’s economic climate, however, it appears there may be more risk in low yielding debt than there is in stocks themselves, which are generally considered to be the most risky. The Flee to Bonds With … Read more4 Reasons Bonds are No Longer "Safe"