Investing in commodities is something that needs to be done within a constructive strategy to understands risks and opportunity. There are many factors to consider individually depending on one’s access, location and financial position. Five factors to consider are monitoring the market, monitoring supply and demand dynamics, diversification, long-term focus and dollar cost averaging. Constructive Strategy Investing in Commodities Could Include: 1. Monitoring the market: Stay up to date on the latest market developments and adjust your investment strategy as … Continue reading “Five Factors in a Constructive Strategy for Investing in Commodities”
Fund Manager Misery with Capitulation and Sentiment at Lehman Collapse Levels – BofA Survey
BofA Global Fund Manager Survey revealed the lowest equity allocation since Lehman Bros and the highest cash levels since 2001 as fund managers slashed their exposure to risk assets. These levels have not seen even during the global financial crisis. The markets in response on Tuesday in a sign of full capitulation amid a “dire” economic outlook rallied sharply by early afternoon the Dow at 31765.50 was +691.01 or +2.22%, Nasdaq 11695.85 +335.83 +2.96% and the SP 500 3931.38 +100.46 … Continue reading “Fund Manager Misery with Capitulation and Sentiment at Lehman Collapse Levels – BofA Survey”
Norway Raised Interest Rate with More Hikes Likely Depending on Coronavirus Impact
Norway’s central bank, the Norges Bank’s Monetary Policy and Financial Stability Committee unanimously raised the policy rate from 0.25 percent to 0.5 percent on Thursday as widely expected. The bank and said more hikes were likely next year although that would depend on the impact of a surge in coronavirus infections and the emergence of the Omicron variant. Norges Bank’s action was its second hike in three months, as predicted economists polled by Reuters and in line with the central … Continue reading “Norway Raised Interest Rate with More Hikes Likely Depending on Coronavirus Impact”
Greed Outpacing Fear in Markets says Goldman’s Solomon
In what may appear as patently obvious to most Goldman Sachs CEO, David Solomon speaking at an event in Singapore said we are living in one of those “periods of time when greed has outpaced fear.” and the global economy is facing a ‘complicated time’. We are in times not too dissimilar to the 1980’s where the fictional Gordon Gekko ruled and the real Ivan Boesky would most likely be the norm in the moral hazard free 2021. Soloman says … Continue reading “Greed Outpacing Fear in Markets says Goldman’s Solomon”
US and European ETFs See Switch From Value To Growth Stocks in Q3
European Growth ETFs, which focus on “growth” stocks, attracted €120m in the three months to September, their strongest quarter since 2015. The move mirrored the US, where growth ETFs took in $9.4bn in Q3, the second strongest quarter on record, and reversing the $8.5bn of net outflows the sector suffered in the previous 12 months. Growth stocks typically trade at higher price-to-earnings or price-to-book-multiples The move followed European Investors in Q3 pulling a record net €3.7bn from European value ETF … Continue reading “US and European ETFs See Switch From Value To Growth Stocks in Q3”
China First Quarter GDP Grows At Strongest Pace On Record At 18.3%
The Chinese economy rose 18.3% yoy in the first quarter, though lower than the market consensus of 19%. China’s growth accelerated from 6.5% growth in Q4 . This was the strongest pace of expansion since 1992 (when records were first published)
Norway Sovereign Wealth ‘Oil’ Fund Hits $US 1 Trillion
Norway’s sovereign wealth fund ‘The Fund’ just reached a massive $US1 trillion in value. The so called ‘oil fund’ is the envy of most countries, particularly countries with large commodity resources such as Saudi Arabia and Australia. Norway is a lesson in foresight and saving for the future and taking account of finite resources and their limitations. This is the antithesis of the US Federal Reserve and Bank of Japan who live in hope and kick the can down the … Continue reading “Norway Sovereign Wealth ‘Oil’ Fund Hits $US 1 Trillion”