Why Do the Defensive Sectors Appear More Expensive?
The defensive sectors appear more expensive than they have been in the past, as well as more expensive than cyclical sectors.
Major Asian currencies had a mixed performance against the US dollar on June 21, 2016.
There are no truly reliable measures of future growth. That said, certain economic statistics have historically led overall growth.
Pay less attention to what consumers say and more to what they’re earning. The best predictor of household consumption is income growth.
A number of factors have contributed to the slowdown, including soft overseas growth and a sharp drop in capital spending by energy and mining companies.
With investors facing a mixed economic outlook, Russ offers guidelines on what to keep an eye on and what to expect.
Privately owned housing authorized by building permits totaled 1,138,000 for May. This was below the forecast of 1,150,000.
There are several important economic indicators to watch next week, including the German and Eurozone ZEW Economic Sentiments, Eurozone consumer confidence, and US crude oil inventories.
Eurozone industrial production rose 1.1% in April 2016 compared to a decrease of 0.7% in March. This is the first gain in the last three months.
US retail sales increased 0.5% in May 2016 compared to 1.3% in April 2016. The Market expected a 0.3% rise.
On a year-over-year basis, China’s industrial production increased to 6.0% in May 2016. That’s the same pace as April.
The Bank of Japan maintained status quo in its monetary policy review meeting on June 16, 2016. It kept the interest rate constant at -0.1%.
In March and April, the Fed indicated an urgency for a rate hike. But it backed away from that in June amid concerns about a weakness in global growth.
According to the EIA (U.S. Energy Information Administration) report on June 15, 2016, US crude oil inventories fell by 0.93 million barrels for the week ended June 10, 2016.
In this series, we’ll take a look at some economic indicators, including the Federal Reserve’s dovish stance, the Bank of Japan’s monetary policy, and the fall in US crude oil.
The increase in investment and the rise in exports is likely to boost the Eurozone’s (IEV) GDP growth to 1.7% in 2016 compared to 1.6% in 2015—the highest since 2010.
Global growth has also been affected by structural factors like an aging population, a decline in labor force participation rate, and waning labor productivity.
The years of stunning growth in emerging markets (EEM) are over, especially since 2010. According to the World Bank, emerging markets growth slowed from 7.6% in 2010 to 3.7% in 2015.
In the past three decades, emerging market (EEM) economies grew rapidly, led by exports, which shifted current account balances from a deficit to a huge surplus.
Over the past six decades, the world economy has expanded at a rapid pace—the average global growth rate was 3.8% from 1950–2014. The post-recession global growth has faltered to an average growth of just around 3%.