Tuesday , 12 November 2019


Economy

A Modern Day Parable: GM (America) vs. Toyota (Japan)

What follows is a modern day parable which, if it wasn't so true, would actually be funny. A Japanese company (Toyota) and an American company (General Motors) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. Below are the results.

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Venezuela Default Looms: Will China Save It?

Economic activity in Venezuela will fall 10% in 2016 – not 8% as previously stated - according to the IMF. General Mills, Bridgestone, Coca-Cola, Kimberly-Clark, Aeromexico, Lufthansa and LATAM Airlines have all suspended operations there in the past year. Upcoming debt payments are significant, and the country will most likely default as early as November of this year and no later than April of next year. International reserves are simply insufficient at a time when oil production declines and the economy contracts. Two questions in the air: Will China save Venezuela? Will it demand Maduro step down?

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An Unsettling Look At the Unprecedented Risks the World Is Facing

Investors globally have never faced risk of the magnitude that the we are now exposed to but, sadly, very few are aware of the unprecedented risks the world is facing. For the ones who understand risk and take the right decisions, it will “lead to fortune”. Only very few will choose that route, though. Instead most investors will continue to...

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Desperate Venezuela: The Moment Of Financial Reckoning Looms Larger

It’s somewhat understandable - but highly regrettable - that Venezuela is parting with its gold so readily in the midst of this economic turmoil. Gold has traditionally been a source of security for countries looking to hedge against currency volatility; and heaven knows Venezuela has had more than its share of that. The bottom line? They’re giving up the only security they have left.

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Is Housing Stock Rally Building An Addition – or Another Roof?

The PHLX Housing Index (HGX), subject of our Chart Of The Day, closed today at a 9-year high...yet, as the chart shows, while technically a new high...it’s a bit of a reach yet to declare this a “breakout”. That said, the chart has a few things going for it, if you are a bull on housing stocks. [Let me explain.]

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The Phillips Curve – What Must Be Done To Alleviate Persistently Low Inflation?

There was a time when U.S. central bankers worried that inflation was too high, and they tried to bring it down. Now the opposite is true: the Federal Reserve is concerned that inflation has remained stubbornly low, and it’s trying to boost prices. The reason: persistently low inflation raises the risk that prices will actually start to decline. That’s bad news because it makes people less willing to borrow and spend—anticipating lower prices, consumers will put off spending—and could also lead to a fall in wages.

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