As The United States continues to 'deal' with Iran's nuclear ambitions, Sputnik News reports that "the expansion of cooperation between the Russian Federation and China in the nuclear sphere is being actively discussed." The source went on note that talks on the construction of the seventh and eighth units of the Tianwan Nuclear Power Station in China are in the final stage following the signing of a major memorandum of understanding between Russian and Chinese officials in March 2014, that laid the groundwork for future energy cooperation between the two countries. Isolated?
While "Bud" will ensure the local treatment in almost every bar in America, what should you order in Ukraine (or Madagascar) to 'fit in'?
"This past month may be remembered as the moment the United States lost its role as the underwriter of the global economic system... With US commitments unhonoured and US-backed policies blocking the kinds of finance other countries want to provide or receive through the existing institutions, the way was clear for China to establish the Asian Infrastructure Investment Bank," the former Treasury Secretary says, in a sharp rebuke of US foreign policy.
Having previously warned that "the eurozone chess game is entering its final stage," and exclaimed that "we are not at war with Russia or ISIS, we are at war with the Troika," Italy's erstwhile populist leader, Italy's Five Star Movement's Beppe Grillo unveils his Plan B by destroying seven unfounded myths with regard an exit from the euro...
"Never, since 1900, have investors been this persistently bullish," warns Wells Fargo's Jim Paulsen. While the 13 previous cautionary signals since 1900 suggesting investor sentiment was too high have not been perfect, they have proved to be fairly good warning signs; and along with "massive overvaluation", and a dramatic "decoupling of markets from economic productivity" this extreme sentiment reading completes the trifecta of flashing red warning signs for US equity markets.
To answer an age-old question, namely who is smarter - credit or equity investors, and specifically, whether credit investors know something that equity investors do not, Citi examined whether credit or equity is leading the price action in the energy sector. It found that the credit and equity markets are responding to energy headlines at the same pace, in other words under the New Paranormal, both equity and credit investors have become equally dumb.
It might prove to be a one-off. But one group in the gold industry this week forged ahead with a unique strategy - which might just change the market. The group is India’s largest jewellery-maker, Rajesh Exports. Which said that it is taking an unusual step in securing gold supply for its operations. Buying gold mines.
"Amid the wave of bellicose rhetoric that has swelled in Moscow since the start of the conflict in Ukraine, officials as high up as President Vladimir Putin have been making open nuclear threats, a public saber-rattling with weapons of mass destruction largely unseen even in the days of the Cold War."
Considering that Chinese equities are the best performing market in USD terms (second only, oddly enough, to Russia) in 2015, one can see why after a disappointing 2012 and 2013, and modest 2014, Hendry has hit 2015 out of the park with a bang, generating a 10.6% return in the first two monthes of the year. So is Hendry still bullish on China's stock market prospects? Why yes, and then some. But is he is contrarian just for the sake of being contrarian? Does he see something in China that nobody else does? Or is he simply right... or wrong, as the case may be? We will let readers decide.
Money doesn’t go “into” the stock market – it goes through it from a buyer to a seller. The resulting price changes are purely changes in the relative value that people place on these pieces of paper, and amount to changes the amount of “paper wealth” in the economy. These changes should emphatically be distinguished from the real wealth of the economy, and the underlying stream of cash flows that will be generated over time.
"For many Americans, the rise in food and housing prices is a tough squeeze. That’s because even in an era with low overall inflation low-income Americans spend a disproportionate share of their money on food and housing," WSJ notes, proving that once again, poor people aren't allocating their funds correctly.