That Keeps Us Bullish: Central Banks Are In Easing Mode, Emerging Markets Still Looking Good Last week, we wrote that we see the possibility that finally, after years of underperformance, the stars might be beginning to align for emerging markets in 2019. Overarchingly, here’s what emerging markets need to see Read more
In the period since the end of the Great Recession, the U.S. stock market has moved ahead — while emerging-market stocks have spent almost a decade basically treading water. Emerging Markets Have Underperformed the U.S. In the Post-Crisis Period Source: Bloomberg LLP For a time, beginning partway through 2016, the Read more
Personal Income Is Up, Which Correlates With A Stock-Market Rally The health of the consumer is one of the key drivers of the U.S. economy, given the preeminent importance of consumer demand (and of course, this is a feature of all developed economies, not just of the U.S.). Real personal Read more
Market Summary The U.S. economy is much stronger than some of the media’s pessimistic reports. January was affected by weather and the after-effects of the government shutdown. Since that time, U.S. economic growth has improved; we remain optimistic that the U.S. economy will grow by at least 2.4% in 2019. Read more
In 2015, the U.S. removed a restriction that had been in place since the 1973 Arab oil embargo — one that had prohibited crude oil exports. The result could be described, as we quote from in our headline from the head of the International Energy Agency, as a “second wave” Read more
Huawei’s Undersea Ventures and Global Internet Security Many intelligence analysts and agencies around the world are concerned that Chinese tech giant Huawei, as it sells hardware, software, and services around the globe, is working hand-in-glove with the Chinese government to further its geopolitical ambitions. These concerns are not limited to Read more
Market Summary Bullish news came Wednesday from the Federal Reserve, at which Fed Chair Jerome Powell indicated no further rate increases in 2019, and a single rate increase in 2020. We noted in last week’s letter that many global central banks are currently supportive of stock markets, and that includes Read more
After the closing session of the National People’s Congress, Chinese second-in-command Li Keqiang addressed various measures that the Chinese government has taken to spur economic growth, and suggested more to come in the future. Source: Xinhua Li noted cuts to value-added taxes (slated to take effect on April 1), cuts Read more
As our regular readers know, we like to point out that the Chinese stock market’s performance is much more closely related to retail investor sentiment than are other major world markets. This is because the Chinese domestic stock market (“A sharesâ€) is relatively small compared to the Chinese economy, relatively Read more
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