Inflation has pushed interest rates higher and wrecked havoc in bond markets. Investors turn away from SAAS towards ‘reopening stocks’ in the Industrial sector. This rotation has crimped the markets so far this year and could spell trouble for most of 2022.
US markets were top performers in 2021. Fed tapering became the year’s theme as inflation began showing up in the Spring. Bonds sold off, and yields rose. Chinese companies suffered as a crackdown on foreign listed stocks erupted in Q3. The US maintains its top ranking of all equity markets going into 2022.
Retirees search for dividends, enduring low returns while risking running our of money. Managing withdrawals can extend and grow retirement savings.
China and inflation news headlines sent markets lower in September. Seasonality changes for the better in October.
Lithium prices are set to rise over the next decade. We have previously discussed Albemarle (ALB) and Sociedad Química y Minera (SQM) as main beneficiaries of this trend. We review these again during this week’s Live Facebook chat. Other metals, like iron ore and palladium look to have peaked recently after strong runs. Chinese PMI Read more ➝
As the US and many other countries discuss raising individual income taxes, private placement life insurance comes again into focus. Its always been a mechanism to legally hide investments from taxes, but now it is receiving a renewed interest from even less wealthy individuals. A bullish fund manager feels a return to normalcy will send Read more ➝
Chinese stocks have been pounded lately as Xi puts pressure on companies to provide funding for socially beneficial projects. Arm twisting seems at play, as wealthy businessmen kowtow to politicians. Emerging markets face inflation as natural disasters, COVID and supply chain issues fuel shortages. Dividend ETFs always generate attention. We compare $DVY to owning the Read more ➝
It is almost inescapable to read any financial journal these days and not be confronted by the word “inflation”.
If we separate the underlying catalysts for current rise in CPI, we can determine that this is possibly a result of the economy reopening and nothing more sustained nor substantial.
ECB waits for 3%+ inflation levels. Water is a hot topic in ESG investing. Markets rebound after COVID related sell off, but small caps going nowhere.
We honor the passing of a great investor this week. We also review the stimulus package and find some interesting opportunities in value stocks.
Today’s release of unemployment statistics in the US is impressive. Analyst comments put the current interest rate jitters in a historical perspective.