How wage inflation in China supports Baidu over Google and Yandex
Wages in China are simply growing much faster than the overall economy, which fuels inflation and real estate bubbles when banks are willing lenders.
Although Google’s revenues of $15.4 billion were almost in line with Wall Street expectations of $15.5. billion, the EPS of $6.27 per share were below analysts’ expectation of $6.41 per share.
Sector ETF Analysis
The US drilling rig count increased by 13, from 1,818 to 1,831 during the week ended April 11, as Baker Hughes Inc. reported. While oil rigs increased by 19, gas rigs saw another decline, by 9.
As the Guggenheim Shipping ETF (SEA) and dry bulk shipping companies trade on the public stock market, day-to-day movements in share prices are also subject to market psychology.
The Fed would really like to create inflation, provided it results in increased wages. If wages don’t cooperate, the Fed may end up making matters worse.
The Mosaic Company’s latest weekly Plant Nutrient Affordability Index showed improvements on April 4, 2014.
Cisco Sytems, Inc.’s stock is up 13% since 2013, and it has underperformed the S&P 500 Index.
Macro ETF Analysis
The municipal bond (RVNU) market’s debt outstanding on December 31, 2013, stood at ~$3.7 trillion, making up about 9.2% of the total outstanding debt in the U.S.
James Bullard, President and CEO of Federal Bank of St. Louis, discussed a paper by Dr. Kevin Sheedy at an event organized by the Brookings Institute in Washington DC.
Since March, value is coming back with a vengeance in large, mid, and small cap stocks, with value outperforming growth by approximately 5.25%, 5.0%, and 4.25%, respectively.
WTI crude oil traded higher on the week, with support coming from geopolitical tensions in Russia, Ukraine, and Libya as well as low gasoline inventories.
Income ETF Analysis
Things are finally starting to improve with construction jobs on the rebound and more companies starting to move toward onshore production.
One alternative to investing in MLPs directly is to invest in MLP exchange-traded funds (or ETFs). An ETF can hold many different asset classes.