Brazilian Stocks Continue to Decline Despite a Pleasant Surprise
Brazilian stocks continue to decline. A good chunk of this decline is due to the corruption scandal surrounding Brazilian oil giant Petróleo Brasileiro.
The stronger dollar (UUP) and weak global demand weighed down economic growth in the United States for the fourth quarter of 2014.
The United States is currently in the midst of a currency war. The strengthening dollar affects multinationals’ foreign revenues.
Poor consumption could lead to a subdued US economy. Bad weather is one reason for sluggish sales.
Opportunities within fixed income lie in the high yield sector. About 15% of high yield bond issuers belong to the energy sector (XLE).
Consider investing in Japanese stocks, as Japan could see some reforms. Japanese companies are deploying cash by buying back shares and raising dividends.
European equities could perform well. Europe (IEV)(FEZ) has consistently faced recessionary pressures over the last few years.
A stronger dollar hurts US large-cap companies. The massive gain is mainly due to the divergence in the policies of major central banks.
Major headwinds have led to the underperformance of US stocks. US stocks could continue to underperform.
A stronger dollar, lofty valuations, and a looming rate hike are causing higher volatility in US stocks. Safe-haven assets revel in volatile stock markets.
Yields dipped further this year, with the ten-year falling well below the 2% mark due to fears of a “Grexit” (Greece’s exit from the European Union).
Invest in the far side of the Treasury yield curve for more value. The spread has increased from close to zero in 2007 to about 250 basis points.
The rate hike could cause a flatter yield curve.
Global demand for US Treasuries could persist for the rest of the year. Major developed markets (EFA) outside the US have seen poor growth or recession.
Robust growth could lead to an early rate hike—despite low inflation. Low inflation rates are one of the reasons why Treasury yields have remained low.
Interest rates dipped in 2014 due to fears of a global slowdown. We’ll take a look at major drivers to predict which way interest rates could head in 2015.
Mature tech stocks are likely to be a good value play this year as the US economy strengthens and both consumer and business spending receives a boost.
The promise of technology stocks has translated into solid deliverables with strong earnings growth.
Facebook has proven to be a game-changer by introducing the world to the concept of social networking, something quite unheard of in the Y2K era.
The NADAQ’s dominant players have changed drastically in 15 years. The top ten stocks today have only three stocks in common with the NASDAQ of 2000.
But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.