marc

Marc Wiersum, MBA

Marc began his career in finance in 1990 as an equity analyst with Daiwa Securities in Tokyo, Japan, and is a Registered Representative in both Japan and the USA. After attending the University of Chicago Graduate School of Business (MBA, International Economics & Statistics, 1995), Marc provided equity derivatives trading markets coverage to global hedge funds while at Daiwa Securities and Salomon Brothers Japan, and fixed income markets coverage while at Credit Suisse First Boston and JP Morgan Securities, Japan. Marc served as a private banker to hedge fund managers from 2004-2009 in New York at Bank of America and HSBC, and has since continued to work in investment advisory roles. Marc has worked for nearly nine years in Japan, including the study of Political Economics at Sophia University, as well as two years in Brazil, and is a fluent speaker of both Japanese and Portuguese.

Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.

More From Marc Wiersum, MBA

  • Tech & Comm Services

    Why the US labor market recovery is weaker than it looks

    This article takes a closer look at the unemployment rate in the U.S. and considers the implications for equity investors.

    By Marc Wiersum, MBA
  • uploads///Japan Monthly Trade Balances With USA EU China Yen B
    Consumer

    Japan’s trade deficit with China: Worse for GM than the recall

    This article considers the impact of Japan’s trade dynamics on Japanese automakers like Toyota (TM) versus General Motors (GM) from a macroeconomic perspective.

    By Marc Wiersum, MBA
  • Real Estate

    Why the housing market impacts consumption and equity investors

    This article considers the importance of investment, including residential investment, in the support of U.S. consumption data and the implications for investors.

    By Marc Wiersum, MBA
  • Financials

    Must-know: Is Japan’s fixed investment waking from a deep sleep?

    Fixed investment in Japan The below graph reflects the flat lining of Japan’s fixed investment environment. As the Japanese yen had appreciated from 140 to the US dollar to 75 to the US dollar from 1998 to 2011, global fixed investment capital flocked to China, leaving Japan in the dust. However, as the Japanese yen […]

    By Marc Wiersum, MBA
  • Financials

    Will economic growth raise Chinese equities like FXI in 2014?

    This article considers China’s prospects to see its equity market rally once again after a few years of soft landing–induced tightening.

    By Marc Wiersum, MBA
  • Financials

    Is China’s real estate bubble getting out of control again?

    With new properties developing slower, the current price levels in China could in fact be supported. The risk for the future of housing prices is more likely to be associated with China’s GDP.

    By Marc Wiersum, MBA
  • uploads///Capital Formation as a Percent of GDP USA China Japan
    Consumer

    GM’s long-term competitive threat: Japan’s investment recovery

    Japan is showing signs of investment recovery with its new economic policies coming into play.

    By Marc Wiersum, MBA
  • Consumer

    Must-know: Is income inequality positive or negative for stocks?

    At the heart of the ongoing budget debate is the underlying notion that the less fortunate 60% of Americans should be entitled to a reasonable foundation of social services.

    By Marc Wiersum, MBA
  • Energy & Utilities

    Part 6: Mid Cap Growth MLP, Mark West Energy Partners—overbought?

    MLP’s—have retail investors gone too far? The below graph of Mark West Energy Partners, MWE, reflects exceptional growth against the S&P 400 mid cap index as well as the Morningstar mid cap growth index. This mid cap Master limited Partnership, MLP, has certainly ridden the MLP bull market. Despite the challenges faced by Chesapeake Energy, […]

    By Marc Wiersum, MBA
  • Tech & Comm Services

    With consumerism under pressure, will profits follow?

    This series looks at trends in personal consumption data as a component of U..S gross domestic product and considers the implications for both equity and fixed income investors.

    By Marc Wiersum, MBA
  • uploads///Japan Nominal GDP in Current and  Dollars
    Financials

    Will “Abenomics” bring real growth to Japan’s economy?

    Japan’s economy versus the U.S. economy The below graph reflects trends in Japan’s gross domestic product (GDP) measured in U.S. dollars as of 2005 and 2013. Japan’s Gross Domestic Product (GDP) in 2012 was approximately $6 trillion USD, versus the U.S. GDP of approximately $16 trillion USD (so Japan’s economy is approximately 38% the size […]

    By Marc Wiersum, MBA
  • Basic Materials

    Part 3–Starwood Hotels & Resorts—a mid cap growth stock that is fully booked

    Strong Momentum in HOT The below graph reflects the strong performance of Starwood Hotels and resorts, HOT, which was particularly strong until the 2008 crisis, and is once gain handsomely outperforming the Morningstar mid cap growth total return index. While just a bit below the S&P 400 index over the years, Starwood Hotels has been […]

    By Marc Wiersum, MBA
  • uploads///China Wages in Manufacturing
    Financials

    China’s wage inflation: Bad news for corporate profits and banks

    Wage inflation in Chinese manufacturing With an appreciating currency and growing economy, Chinese manufacturers have experienced wage inflation. The cost of Chinese labor is simply becoming more expensive, as the below graph indicates. Private sector wage growth in China was 14% in 2012, while GDP growth is slowing to around 7.5% per annum. Wages are […]

    By Marc Wiersum, MBA
  • Consumer

    Why consumer confidence in China has declined long-term

    This series explores the implications of China’s gradual transition to a more consumer-oriented economy.

    By Marc Wiersum, MBA
  • uploads///Oasis Petroleum vs Russell  Small Cap Growth Index
    Energy & Utilities

    Oasis Petroleum—small cap growth investors’ oasis?

    This article considers the prospects for small cap growth shares such as OAS within the context of the Fed’s dovish March 31 commentary, which has continued to support the equity market.

    By Marc Wiersum, MBA
  • Consumer

    Residential investment recovery supports distressed debt like CZR

    While corporate profits as a percentage of residential fixed investment are still very high, at 400%, at least they’ve fallen 25% from 500% to 400% of total corporate profits.

    By Marc Wiersum, MBA
  • Energy & Utilities

    Part 4: Mid Caps—why value rallies and growth weakens post Fed taper announcement

    Value for the long haul The below graph reflects the recent outperformance of mid cap value shares relative to mid cap growth shares since the 2008 crisis, with a more pronounced 10% outperformance since 2013. The prior article in this series demonstrates that mid cap value dominates mid cap growth in the long run, though […]

    By Marc Wiersum, MBA
  • uploads///Japan Real Exports Imports
    Financials

    Why we could see a new trend in Japan’s exports and imports

    Japan’s import and export dynamics The below graph provides a clearer picture of the import and export dynamics of the Japanese economy. By using 2005 as a base year and adjusting for inflation or deflation, the graph shows how exports and imports have changed on a “real” basis, as opposed to a “nominal” basis. Viewing […]

    By Marc Wiersum, MBA
  • Financials

    Why China’s trade is good for Apple’s sales in China

    China is becoming a relatively less expensive manufacturing base, although it’s also becoming a source of stronger revenues for companies like Apple.

    By Marc Wiersum, MBA
  • Financials

    Fixed income ETF must-knows: Comparing Treasuries and other ETFs

    Credit spreads associated with lower rated bank loans found in SNLN and BKLN could underperform as corporations see cash flow decline and their ability to service their debt is compromised.

    By Marc Wiersum, MBA
  • Financials

    Macro investment recovers: Time to short the long end of the curve?

    This article considers the possibility of rising rates and the case for taking a bearish view on bond prices.

    By Marc Wiersum, MBA
  • Financials

    Analysis: Why China’s export growth rates are slowing

    China’s export growth declines The below graph reflects an apparent decline in the rate at which Chinese exports and imports have been growing. The red line reflects the rate at which exports exceed imports (trade surplus). Though growth rates in trade declined in the wake of the year 2000’s dot com bubble and the 9/11 […]

    By Marc Wiersum, MBA
  • Financials

    Are we seeing the end of Japan’s 30-year investment collapse?

    This series explains why Japan’s investment decline happened and what might happen in the future under “Abenomics.”

    By Marc Wiersum, MBA
  • uploads///Japan Yen Versus China Yuan Euro U
    Financials

    Does “Abenomics” mean a new era of yen depreciation?

    A change in yen appreciation? The below graph reflects a potential big change in Japan post-2012—has yen appreciation turned the corner as a result of post-2012 “Abenomics“? In the mid 1970’s, the U.S. dollar bought 300 yen, and by the mid-1980’s, the U.S. dollar bought 250 yen. By the end of the 1980s, the dollar […]

    By Marc Wiersum, MBA
  • Financials

    Is Japan’s investment turning the corner, or beyond help?

    Japan’s fixed capital formation The below graph reflects the ongoing decline in fixed capital formation in Japan. Since Japan’s bubble economy burst in 1990, investments have been in a long-term phase of winding down. However, there has been a slight, though potentially ominous bounce recently. This article examines the trend in capital formation in Japan […]

    By Marc Wiersum, MBA
  • uploads///China Interbank  Day Repo Rate
    Financials

    China tightens monetary policy: Will this be a Japan 1990 redux?

    Interbank lending rates The below graph reflects the effects of the China Central Bank’s monetary tightening policies on interbank lending rates. The interbank seven-day lending rate spiked in June. Rates on government bonds have also risen, with the three-month yield on Chinese bills rising from 2.65% to 3.50%, and the ten-year bond yield rising from […]

    By Marc Wiersum, MBA
  • Tech & Comm Services

    U-5 labor: Marginally attached workers decline, supporting markets

    This article considers the overall improvement in the U.S. labor market and the implications for both equity and fixed income investors.

    By Marc Wiersum, MBA
  • Financials

    Why inflation scare tactics in Japan drive consumption recovery

    Private consumption growth in Japan The below graph reflects the trend in private consumption growth in Japan. As noted in Part 1, Japan’s real gross domestic product (real GDP) today is approximately where it was in 2005. The lack of overall economic real GDP growth has reflected in stagnated wage growth, as well as a […]

    By Marc Wiersum, MBA
  • Financials

    Japanese wage growth: Off to the races?

    What can the policies of Japan’s new Prime Minister provide in order to convince consumers to spend more and grow the overall economy? Prime Minister Abe has some fairly radical ideas.

    By Marc Wiersum, MBA
  • uploads///Investment as a Percent of GDP
    Consumer

    Greenspan’s lament: Consumption is no substitute for investment

    Why it’s becoming increasingly difficult to expect sustainable prosperity from additional consumption in the U.S. economy.

    By Marc Wiersum, MBA
  • Financials

    Unemployment and discouraged workers: The improvement continues

    This article considers the halfway mark improvement in the U-4 labor data and the implication for fixed income investors.

    By Marc Wiersum, MBA
  • Consumer

    Why “Abenomics” deserves more (consumer) credit

    Japan’s consumer credit The below graph reflects modest growth in consumer credit in Japan. Over the past two years, consumer credit balances have grown about 11.0%. That isn’t a bad growth rate for a country whose real GDP (gross domestic product) output rate is still stuck at 2005 levels. Given that Japan’s GDP is roughly […]

    By Marc Wiersum, MBA
  • Consumer

    Fixed income must-know: Why the Fed struggles to create inflation

    This article considers the Federal Reserve Bank’s continued struggle to reach its inflation target and the implications for fixed income investors.

    By Marc Wiersum, MBA
  • Financials

    Is rising business inventory growth a bull market indicator?

    This article considers the implications of growing business inventories in the context of an improving investment environment and the outlook for investors.

    By Marc Wiersum, MBA
  • uploads///China Consumer Confidence
    Financials

    How the Chinese recovery helps hedge funds’ BIDU holdings

    This article considers the prospects for China’s Baidu versus Google in the U.S. and Yandex in Russia.

    By Marc Wiersum, MBA
  • Financials

    Why the federal budget deficit is returning to normal levels

    This article considers the ongoing decline in the federal budget deficit and considers the implication for fixed income investors.

    By Marc Wiersum, MBA
  • Financials

    Bear strategy: Profit from rising rates with fixed income ETFs

    Investors could consider hedging their short-term duration risk (HYG: 3.98 years, JNK: 4.20 years) with a short position in longer-dated bonds.

    By Marc Wiersum, MBA
  • Financials

    Why Japanese ETFs outperform Chinese and Korean ETFs on “Abenomics”

    Thanks to “Abenomics” and a weaker yen, Japanese equities have risen and have also outperformed both U.S. and E.U. equities and avoided the fate of Chinese, Korean, and emerging market shares.

    By Marc Wiersum, MBA
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    Real Estate

    Why we’re seeing a brand new housing bubble—Japan style

    Residential investments in Japan The below graph reflects the ongoing decline in the rate at which residential investments are being made in Japan. As with other forms of fixed investment noted earlier in this series, Japan has seen a long-term decline in the housing market since the peak of the economic bubble, which was accompanied […]

    By Marc Wiersum, MBA
  • Tech & Comm Services

    Hedging: You can profit from rising rates with fixed income ETFs

    Should interest rates rise equally in the five-year part of the yield curve as the 20-year part of the yield curve, HYG and JNK would likely decline roughly 3.98% and 4.20% in value.

    By Marc Wiersum, MBA
  • Financials

    China’s Great Wall of worry: The top ten causes for concern

    The strength of Japanese equities The below graph reflects the strong performance of Japanese equities over Chinese and Korean equities since the election of Japan’s new Prime Minister, Shinzo Abe, in November last year. Hopes of ending deflation in Japan have led to a strong performance in Japanese markets, while Japan’s neighbors, China and Korea, […]

    By Marc Wiersum, MBA
  • Financials

    Why China’s growing trade economy supports Apple’s sales

    With an economy that’s now approximately 60% larger than Japan’s (on a dollar basis), China’s reliance on trade for growth has become a larger issue.

    By Marc Wiersum, MBA
  • Financials

    Must-know: Will deflation end China’s investment boom?

    The importance of capital formation The below graph reflects the historical dynamics of capital formation—the percentage amount of gross domestic product, or GDP, at which capital is invested—in the United States, Japan, and China. As the graph reflects, China exhibits a tremendous level of investment as a percentage of GDP relative to the more mature […]

    By Marc Wiersum, MBA
  • Tech & Comm Services

    The Baby Boomer generation and the “lump of labor” theory

    This series considers the Baby Boomer generation’s impact on the U.S. labor market, with special focus on how the retirement of Baby Boomers contributes to a decline in the labor force participation rate.

    By Marc Wiersum, MBA
  • Consumer

    AAA and AA credit versus the below-investment-grade Sprint

    This article considers the trade-offs between high-quality, low-yielding fixed income opportunities and lower-quality higher yields in the current improving economic environment.

    By Marc Wiersum, MBA
  • Financials

    Will slowing foreign investment cool consumption in China?

    China’s waning foreign investment The below graph reflects an ongoing decline in the percentage of foreign direct investment (FDI) in China as a percent of China’s gross domestic product (GDP). You can see the dramatic increase in FDI that occurred in China in 1992, when China began to create its “special economic zones,” which served […]

    By Marc Wiersum, MBA
  • Tech & Comm Services

    Labor conditions: AAA credit versus the sub-investment-grade Sprint

    This article takes a closer look at the changes in the discouraged worker data and considers the implications for fixed income investors.

    By Marc Wiersum, MBA
  • Financials

    Must-know: Will slowing trade growth in China cool Apple’s sales?

    The stimulus fades and trade growth slows: A problem for future growth expectations? The below graph reflects an apparent decline in the rate at which Chinese exports and imports have been growing. The red line reflects the rate at which exports exceed imports (trade surplus). Though growth rates in trade declined in the wake of […]

    By Marc Wiersum, MBA
  • Consumer

    Flight from quality and duration: Going to Vegas with SNLN and BKLN

    Ultra-short duration: Avoiding losses in a rising rate environment The below graph reflects changes in popular fixed income ETFs since the 2008 crisis. As the bond market rally has softened and interest rates have risen, longer-duration bonds, as reflected in the iShares Core Total U.S. Bond Market ETF (AGG), with a duration of 5.11 years, […]

    By Marc Wiersum, MBA
  • Financials

    Must-know: China’s equity market implications

    Major equity indices The below graph reflects the relative performance of major equity indices since the year 2000. The economic growth histories of China and Korea have contributed to superior performance over the US and Japanese equity markets over this timeframe. However, the below graph reflects how sensitive Chinese and Korean markets are to US […]

    By Marc Wiersum, MBA
  • Tech & Comm Services

    High-quality fixed income versus BBB+ and BB: Verizon & Sprint

    While the short duration aspect of both JNK and HYG might seem attractive to investors wary of rising rates, investors should bear in mind that both HYG and JNK also have significant credit risk.

    By Marc Wiersum, MBA
  • uploads///Real GDP Growth USA Eurozone
    Financials

    Why the market recovery in the US and Europe will support Baidu

    The U.S. and Europen Union are making good recovery The below graph reflects on going trends in the Gross domestic Product (GDP) growth rates in the U.S. and European Union, the major destinations of Chinese exports. With slow economic growth in the U.S., and the European Union gross domestic product (GDP) finally hitting positive territory […]

    By Marc Wiersum, MBA
  • Financials

    Fixed income ETFs: Key differences in duration and quality

    This article considers the trade-offs between high-credit-quality and lower-credit-quality, as well as shorter-duration and longer-duration, fixed income ETFs.

    By Marc Wiersum, MBA
  • Tech & Comm Services

    Duration and yield: Lower-grade Sprint versus AAA and AA credit

    This article considers the trade-offs between high-quality, low-yielding fixed income opportunities and lower-quality higher yields in the current improving economic environment.

    By Marc Wiersum, MBA
  • uploads///Berkshire Hathaway F Buffett
    Financials

    Greenspan’s lament: The lack of fixed investment in the U.S.

    This series focuses on the trends of fixed investment in the United States. In the long run, this could be great news for U.S. investors with a long-term view.

    By Marc Wiersum, MBA
  • Financials

    Why the private investment recovery supports the bull market

    This series examines the current U.S. macroeconomic data pertaining to domestic investment and considers the implications for both equity and fixed income investors.

    By Marc Wiersum, MBA
  • uploads///Personal Consumption Expenditure as a Percent of GDP
    Consumer

    Is the U.S. consumerism economy flawed by design?

    The future liability of entitlements in the following decade of 2020–2030 presents an enormous financial challenge for the children and grandchildren of the baby boomer generation

    By Marc Wiersum, MBA
  • uploads///Chinese Renminbi Versus USD Euro Yen Won
    Financials

    Chinese exports will face more competition from Japan and Korea

    Chinese yuan appreciation The Chinese yuan has appreciated approximately 3% per year since the launch of exchange rate reform in 2005, appreciating from 8.25 to 6.15 versus the U.S. dollar. The Chinese Central Bank “pegs” its exchange rate to the U.S. dollar—though it has allowed its currency to appreciate against the U.S. dollar more aggressively […]

    By Marc Wiersum, MBA
  • uploads///US Versus EU GDP Growth Rate
    Financials

    Slow growth in United States and European Union cool China export

    GDP in the United States and European Union The below graph reflects ongoing trends in the gross domestic product (GDP) growth rates in the United States and European Union, major destinations of Chinese exports. With slow economic growth in the United States, and the EU gross domestic product finally hitting positive territory (+ 0.3%) after […]

    By Marc Wiersum, MBA
  • Consumer

    U-6 labor: Underemployment declines, supporting stocks and bonds

    This article considers the big picture of overall labor conditions and the implications for equity and fixed income markets.

    By Marc Wiersum, MBA
  • Financials

    Will China’s large-cap ETF, iShares’ FXI, stop underperforming?

    For Baidu, Apple, and Google China, the improvement in the domestic consumption area has been encouraging, though construction and manufacturing still aren’t firing on all eight cylinders.

    By Marc Wiersum, MBA
  • uploads///Japan Merchandise Exports Imports
    Financials

    Why Japanese exports could break out of a 5-year slump in 2013

    Japan’s export growth As reflected in the graph below, Japan’s export growth has remained sluggish since the 2008 crisis. It has since struggled to recover to pre-crisis levels. Japanese exports are still 20% to 30% below their 2008 pre-crisis levels. However, 2013 could be the year when Japanese exports finally break out of their five-year […]

    By Marc Wiersum, MBA
  • Financials

    4 million Baby Boomers have retired since 2008: Effect on stocks

    This article further considers the growth in “unavailable workers” and the implications for investors in the USA.

    By Marc Wiersum, MBA
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    Consumer

    Is U.S. consumer spending losing momentum?

    While optimists point to this recovery as indisputable evidence that the U.S. economy is the most resilient and dynamic in the world, this reasoning may not fully recognize a variety of risk factors.

    By Marc Wiersum, MBA
  • Financials

    Shutdown 101: Why perceived wealth distribution isn’t the reality

    Inequality: The which of you with patient ears attend The below chart illustrates the dramatic difference in the reality versus the perception of wealth distribution in the US. The top 20% of the US holds 84% of the wealth, which is quite different from European countries, such as Sweden, which holds closer to 36%. For […]

    By Marc Wiersum, MBA
  • Financials

    Shutdown 101: Are US economic growth rates a policy failure trend?

    This series examines the specific components of the US economy over time and how each component has contributed to this “surprising” economic decline.

    By Marc Wiersum, MBA
  • Financials

    Shutdown 101: Robert Reich versus Larry Kudlow and US debt

    Exploding US debt: Going to Vegas, or garden-variety Keynesianism? The below graph reflects the doubling of publicly held debt under the Obama Administration from roughly 35% to 70% of gross domestic product. However, it also reflects the doubling of publicly held debt under the Reagan Bush Administrations from 1981 to 1993. Given the severity of […]

    By Marc Wiersum, MBA
  • Industrials

    Analysis: Why China’s real estate construction is declining

    Fixed asset investment in China The below graph reflects the significant decline in fixed asset investment as a percentage of GDP as well as the significant decline in the growth rate of real estate–related construction and investment. As noted in the prior article, since 1996, overall construction in China has seen five boom and decline […]

    By Marc Wiersum, MBA
  • Financials

    Kudlow’s lament: Is capital on strike in the U.S.?

    Investment in the United States The below graph reflects the capital strike in fixed domestic investment in the United States. The “strike” of U.S. capital is the notion raised by CNBC commentator Larry Kudlow that despite record profits at U.S. companies, profits and capital aren’t recycling back into the U.S. economy as investment. As displayed below, U.S. […]

    By Marc Wiersum, MBA
  • Financials

    The taper could affect momentum stocks like Keurig Green Mountain

    This article considers the risks associated with investing in high momentum stocks in the current environment of declining Fed bond purchases.

    By Marc Wiersum, MBA
  • Financials

    The fed tapers: Will small caps weaken relative to large caps?

    Determining which index, with its specific risk factors, is the most appropriate for an investor depends upon the investor’s appetite for risk.

    By Marc Wiersum, MBA
  • Financials

    Will the S&P 500 outperform the Russell 2000 under rising rates?

    Should interest rates begin rising as a result of a progressive Fed taper, post-2008 investment returns based on index-specific allocation could see major changes.

    By Marc Wiersum, MBA
  • Financials

    Why growth beat value by 20% post-2008 but may not continue to

    Despite the recent outperformance of growth stocks in the post-2008 economic recovery, in the long run, and over several business cycles, academic studies tend to show that value stocks outperform growth stocks.

    By Marc Wiersum, MBA
  • Financials

    Why large cap growth stocks may hold up better with rising rates

    This article illustrates the extent to which growth stocks can, and have, drastically outpaced value stocks for short periods of time.

    By Marc Wiersum, MBA
  • Financials

    Must-know: Momentum trading the Fed taper and your portfolio

    This article considers the role momentum has in investing versus simply day trading, and the implications for equity investors.

    By Marc Wiersum, MBA
  • Financials

    Tactics or strategy: Momentum trading the taper and your portfolio

    This article considers role momentum has in investing versus simply day trading and the implications for equity investors.

    By Marc Wiersum, MBA
  • Financials

    Japan’s fixed asset investment and corporate profits rebound

    Like the USA, Japan is once again seeing record corporate profit levels. Plus, fixed asset investment reflects a very large recovery since the new Prime Minister was elected at the end of 2012.

    By Marc Wiersum, MBA
  • uploads///Japan Monthly Crude Oil Imports vs Auto Exports Yen Tr
    Consumer

    The Japanese auto exports reach a 3 trillion yen record high!

    This article considers the inter-temporal cost/benefit of importing oil with a weakening currency versus exporting merchandise such as vehicles for Japan.

    By Marc Wiersum, MBA
  • Financials

    Why liquidity, credit, and low interest support Japanese equities

    The Nikkei index stands at approximately 15,000—roughly 6.0% off its December 31, 2013, close, though still below its pre-2008 crisis peak of closer to 18,000.

    By Marc Wiersum, MBA
  • uploads///Japan Nominal Real GDP Yen Tr
    Consumer

    Japan’s GDP back to peak levels: Auto sales and Toyota benefit

    This article considers the prospects for further real GDP growth acceleration and the implications for Japanese exporters like Toyota.

    By Marc Wiersum, MBA
  • Financials

    Are Asian equity ETFs like EWJ and FXI in purgatory for 2014?

    The Japanese ETFs—DXJ and EWJ—performed very well. Meanwhile, both Korean and Chinese ETFs—EWY and FXI—have been flat, with China still in slightly negative territory.

    By Marc Wiersum, MBA
  • uploads///Japan Gross Fixed Capital Formation Nominal Yen Tr
    Consumer

    GM’s nemesis returns: Japan restarts its investment activities

    This article examines the trend in capital formation in Japan, and considers the future prospects for a sustainable turnaround in investment.

    By Marc Wiersum, MBA
  • uploads///Japan Real Gross Fixed Capital Formation YoY
    Consumer

    An overall investment growth supports Japan’s economy and Toyota

    This article considers the recovery in Japan’s investment data and the implications for domestic exporters such as Toyota.

    By Marc Wiersum, MBA
  • Financials

    Third Point invests in Softbank and Sprint on global telecom play

    As the yen weakens, Japanese exporters who have significant dollar and Euro-denominated profits like Sony tend to see gains in their yen-denominated bottom line.

    By Marc Wiersum, MBA
  • uploads///New Google Baidu Yandex
    Financials

    Wage inflation improves China’s consumption and Baidu’s sales

    Wages in China are simply growing much faster than the overall economy, which fuels inflation and real estate bubbles when banks are willing lenders.

    By Marc Wiersum, MBA
  • uploads///Japan Real Non Residential Investment YenTr
    Consumer

    Japan’s investment environment dependent upon government deficits

    As the Japanese yen continues to weaken, and exports begin to grow, Japan will see better market data in the future.

    By Marc Wiersum, MBA
  • uploads///China Yuan vs USD EUR JPY KRW
    Financials

    China’s dollar peg: Better for Baidu than for the Chinese banks

    For Chinese banks, their exporting borrowers are seeing capacity utilization levels decline as the yuan rises.

    By Marc Wiersum, MBA
  • uploads///China Wage Inflation and Producer Price Index
    Financials

    Must-know update: How Baidu benefits from China’s wage inflation

    The rich price earnings ratios of Baidu and Google of around 30 times versus Yandex at closer to 20 times, may suggest that they are vulnerable to shorter-term profit taking and multiple deflation in the case of further soft economic data.

    By Marc Wiersum, MBA
  • uploads///China Total Manufacturing Real Wage Growth Rate
    Financials

    China’s manufacturing wages: Why 2012 was a banner year for Baidu

    The sharp rise in wages in China prompted some fairly aggressive forward-looking estimates regarding China’s wages in manufacturing and its ability to compete as a low-cost manufacturer in the future.

    By Marc Wiersum, MBA
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    Financials

    China’s manufacturing wages rise to $7,000 per year: Baidu benefits

    This article considers the growing wage level in China and its effect on Baidu and other Asian equities.

    By Marc Wiersum, MBA
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    Financials

    China’s soft landing may support banks and Baidu later in 2014

    Given the declining gap between nominal and real interest rates, it may seem that China has cooled inflation, and perhaps cooled speculative investment as well.

    By Marc Wiersum, MBA
  • uploads///Japan ETFs Outperform China and Korea ETFs
    Financials

    China’s large caps: Will the iShares ETF, FXI, rally in 2014?

    Both the Korean and Chinese ETFs, EWY and FXI, have been flat, with China still in slightly negative territory and the worst performer to date.

    By Marc Wiersum, MBA
  • uploads///New Google Baidu Yandex
    Financials

    Consumer confidence improving China consumption and Baidu sales

    This series examines the associated consumption growth trends in China, and considers the implications for Chinese companies like Baidu.

    By Marc Wiersum, MBA
  • uploads///China Yuan vs USD EUR JPY KRW
    Financials

    Is a strong Chinese yuan better for Baidu than for the exporters?

    As the yuan rises, Chinese companies like Baidu may be on firmer earnings ground than many Chinese manufacturing firms and banks.

    By Marc Wiersum, MBA
  • uploads///Japan ETFs Outperform China and Korea ETFs
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