BTC iShares MSCI Japan ETF
Amazon’s International Segment Saw Improvement in 2Q15
The year-over-year revenue growth trend for Amazon’s International segment was falling until last quarter.
Japan’s Service Activity Saw Modest Expansion in December 2015
Japanese services PMI slightly changed at 51.5 in December The service sector accounts for ~72.6% of Japan’s GDP. According to Markit, Japan’s services PMI (purchasing managers’ index) dipped slightly to 51.5 in December 2015, as compared to 51.6 in November 2015. As a result, the iShares MSCI Japan ETF (EWJ) and the WisdomTree Japan Hedged Equity […]
Why Emerging Markets Tumbled after Trump Election
Major indexes around the world showed huge negative fluctuations after Trump won the US presidential election. Major indexes in the United States showed positive performances.
Analyzing BlackBerry’s Recent Partnerships
A few days ago, BlackBerry (BBRY) announced that it would partner with Japan-based (EWJ) Fujisoft and Hitachi Industry & Control Solutions.
Micron’s 3D XPoint Launch—and Where It Stands Now
In July 2015, Micron and Intel companies announced 3D XPoint, their revolutionary non-volatile technology with cross-point structure.
Recommendation: You should favor longer-dated Treasuries
The 10-year Treasury yield still appears attractive relative to sovereign rates elsewhere in the world. In addition, longer-dated Treasuries also look more attractive than those with two- to five-year durations.
What Micron Believes Will Drive DRAM Demand Going Forward
Micron expects DRAM demand to grow at a CAGR (compounded annual growth rate) of 20%–25% between 2016 and 2019, driven by migration to advanced technology.
Why Do Central Bankers Continue to Surprise Bill Gross?
In his recent webcast by Janus Capital, Bill Gross expressed his surprise at the extent to which central bankers of the developed world (EFA) (VEA) have distorted the financial system.
Moving Average Analysis of FEZ’s Personal Care Industry
The personal care industry provided a 3.7% return to FEZ’s performance on December 15, 2015. L’Oreal (LRLCY) and Unilever (UN) rose by 4.2% and 3.3%.
What Are the Catalysts for Amazon’s Stock in 2016?
AWS and the continued success of the Prime membership program were the main drivers for Amazon in 2015. This will likely continue in 2016 as well.
Capital Spending May Help Japan’s Economy to Grow at 1.7% in 2016
After sliding for two consecutive quarters, Japan’s economy has advanced 0.3% in 3Q15. This comes as a relief to the ailing Japanese economy.
Must-know: The aging population’s impact on the economy
The number of people above 65 years is expected to triple from 531 million in 2010 to 1.54 billion in 2050—the population of seniors in the U.S. (IVV) (SPY) is expected to more than double and increase from 41 to 86 million in the same time period.
FireEye Finds New CEO: Will It Make a Difference?
FireEye (FEYE) has announced that Kevin Mandia will be its new CEO after the current CEO David DeWalt steps down on June 15, 2016.
What Will Drive Services Revenue for Apple?
Emerging markets such as China and international markets such as Japan have contributed significantly to Apple’s Services segment over the years.
Asian Markets Are Stable on May 9, Nikkei Pulls Back
After rising to 17-month high price levels and starting the week on a stronger note on Monday, Japan’s Nikkei index pulled back on Tuesday.
Richard Bernstein: Global Economic Conditions Are Improving
According to Richard Bernstein, global economic conditions are improving.
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 […]
Why Volatility Is Likely to Stay High
With growth projections of most major economies falling, it is likely that volatility will stay elevated.
Does The US economic Recovery Mean That A Rate Hike Is Possible?
The US economic recovery is truly on. This is great news for the US stock markets, which went up after the news.
Why analysts expect a further slowdown in Europe to be modest
In addition, many market watchers are concerned about slowing growth in the Eurozone. While the region is unlikely to boom anytime soon, there are some signs that any further slowdown there should be modest.
Seagate’s HDD Shipments Could Benefit from Rise in PC Sales
US-based (SPY) Seagate has a share of ~37% in the HDD (hard disk drive) market.
Developed Markets Offer Value after the Rout
Developed markets are offering value. The Eurozone has come out of the recession and is seeing some green shoots of growth.
Putting Apple’s $1 Billion Content Budget into Perspective
Services contributed 16% of revenue Apple (AAPL) generated $24 billion from its Services business in fiscal 2016, and aims to double the revenue in four years. In fiscal 3Q17, Apple’s Services division contributed $7.3 billion in revenue, up 22% from a year earlier, and making up 16.1% of the quarter’s total revenue. Apple’s Services business consists of offerings […]
The Strengthening US Dollar Has Affected Oil Prices
Weak global demand and a strengthening dollar have affected oil prices.
Why Consumption Will Remain Soft in Australia
Much like US consumers, Australian consumers are in the process of repairing their balance sheets.
Apple Improves iPad Multitasking Feature with iOS 9 Release
Apple announced the release of iOS 9, upgrading its operating system for the iPhone and iPad. iOS 9 allows improved multitasking functionality for the iPad.
Micron’s Mobile Business Gains Growth Momentum in Fiscal 2017
Micron’s Mobile Business Unit revenues rose 4% sequentially and 76% year-over-year to a record $1.2 billion in fiscal 4Q17, in line with expectations of $1.18 billion in revenues.
What Are Analysts Saying about iPhone 7 Demand?
Many analysts aren’t very optimistic about the iPhone 7 demand. Apple is facing technology stagnation in the smartphone market, which has led to longer upgrade cycles.
How Emerging Market Funds Kept Their Momentum
In the current market scenario, the global markets (ACWI) (VTI) (VEU) are mainly driven by the monetary stimulus provided by the central banks.
A Look at the September 2017 Moving Averages for Electronic Arts
Of the 23 analysts tracking EA, 18 gave the stock a “buy” recommendation, and five analysts recommended a “hold.” There were no “sell” recommendations from these analysts.
Overview: Shinzo Abe’s Abenomics
Abenomics is an effort to pull the world’s third biggest economy, Japan, out of two decades of stagnation by expanding the money supply, freeing up regulations, and encouraging the yen to fall.
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.
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.
How General Motors Is Playing the Luxury Car Market
GM hopes to capture a 10% share of the luxury car space. Currently, the company holds a 3.4% share in the global luxury market.
Asian Markets Are Strong amid Holidays
The Hang Seng Index gained 1.8% and closed the day at 30,828.00 on April 30. The iShares MSCI Hong Kong (EWH) gained 0.39% on Friday.
PC Market Not Expected to Stabilize before 2017
In calendar 2Q15, PC shipments fell globally by 9.50%. This situation is likely to continue through 2016 and isn’t likely to stabilize before 2017.
Japan’s Manufacturing PMI Weakened: How It Could Impact the Economy
Japan’s manufacturing PMI (purchasing managers’ index) stood at 52.4 in March 2017 compared to 53.3 in February.
Why emerging markets offer value to your portfolio
Truth: Emerging markets offer value. Given that they’re generally growing faster than their developed world counterparts, emerging markets still look cheap by most metrics.
How Will Lower HDD Shipments Affect Seagate Technologies?
Seagate Technologies (STX) expects to have shipped approximately 39 million HDD (hard disk drive) units in fiscal 3Q16 ended March 31, 2016.
Why Are Asian Market Strong on June 6?
On June 6, the Shanghai Composite Index closed at 3,115.18—a gain of 0.03%. The SPDR S&P China (GXC) gained 0.2% on Tuesday.
How a Softening Japan Services PMI Is Impacting the Economy
According to Markit Economics, the Japan Manufacturing PMI was 52.2 in April 2017 compared to 52.9 in March. It met market expectations.
US Stocks Are Less Attractive than Global Options
As we’ve suggested throughout this series, US stocks don’t have a clear growth catalyst once interest rates rise. Still, you may find value in select sectors such as financials and technology.
What Analysts Recommend for Activision Blizzard in April 2017
On April 24, 2017, Activision Blizzard (ATVI) generated investor returns of 46.8% in the trailing 12-month period and 3.6% in the trailing one-month period.
How Much Will Falling HDD Shipments Impact Western Digital’s Revenues?
Western Digital reportedly shipped ~42.5 million HDD units in fiscal 4Q16—a significant YoY fall of ~12.5% over units shipped in fiscal 4Q15.
IoT Attracts Telecom, Semiconductor, and Software Companies
Gartner expects that there will be 20.8 billion IoT devices by 2020. IoT devices represent a direct growth opportunity for the semiconductor industry.
The EWJ ETF Fell Ahead of Bank of Japan Meeting
The EWJ ETF is an indicator of the Japanese equity market. On October 27 it fell by 0.80% from the previous trading session, ahead of the Bank of Japan’s meeting.
Asian Markets Are Weaker amid Cautious Trade on April 28
After gaining for three consecutive trading days, China’s Shanghai Composite Index lost momentum and closed almost flat on April 28.
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 […]
Hang Seng Falls on China Worries, Nikkei and Sony Surge
China’s growth worries haunted global markets today but the tremors were felt strongest closer to the mainland, in Hong Kong.
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 […]
Dollar Appreciation Impacts IBM’s Growth in 2Q15
IBM pointed to the strengthening US dollar for the decline in its revenues, which fell by 13.5% in fiscal 2Q15. On a constant currency basis, revenue only declined by 1%.
Where Are Interest Rates Going? Ray Dalio Weighs In
Ray Dalio, and Marketplace Morning Report host David Brancaccio discussed the future of the economy and the next recession. Here’s what you need to know.
Must-know: Benefits of hedged currency investment
When the U.S. dollar appreciates, gains on international equity investments can diminish when converted back into U.S. dollars.
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.
How Did HP’s Printing Business Perform in Fiscal 4Q16?
HP Inc.’s (HPQ) Printing business group reported revenues of $4.6 billion in fiscal 4Q16, which fell by 8% YoY and 6% YoY on a constant currency basis.
Nikkei Extends Fall on Mexico Tariffs and Weak Economic Data
Japan’s Nikkei 225 was the worst performer in Asia today.
Japan Outperforms While Manufacturing Growth Is Muted
The flash reading for the Japan Manufacturing PMI deteriorated slightly in June. The index came in at 49.9 for June against May’s 50.9.
Why there might be a downside to a strong US economy
Of course, a strengthening U.S. economy may have a downside. If the Federal Reserve (or Fed) increases interest rates too soon or by too much, markets could be rattled.
Electronic Arts on the Street: Analyst Expectations in July 2017
In the trailing-12-month period, Electronic Arts (EA) stock has risen 48.9%. In the past month, its shares have declined 1%.
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 […]
Christine Lagarde of the IMF sees a 3-speed economy (Part 1)
Christine Lagarde, the managing director for the International Monetary Fund, sees a three-speed global economy In her speech at Brookings Institution in early June, Lagarde mentioned that the global economy has shifted this year towards a three-speed economy, versus the two-speed economy coined by PriceWaterhouseCoopers half a year ago. You can broadly categorize the three […]
Structural Reforms in Japan Could Support Stocks
Japan’s Prime Minister Abe has brought about changes in the labor market, and female labor force participation is now on the rise.
Microsoft Offers Massive Storage with Xbox One for $349
To push Xbox One one step ahead, Microsoft has partnered with Facebook’s Oculus Rift. Xbox One not only works with Oculus but is now an integral part of it.
Analyzing the BoJ’s Monetary Policy Enhancement Measures
The BoJ’s monetary policy was the most awaited macro event this week. It was the first major central bank to expand its easing program after the Brexit vote.
Hang Seng Falls 2.4%, KOSPI over 3%, NIKKEI ~1%
Hong Kong’s Hang Seng Index, which generally follows the mainland’s lead, closed 2.39% lower at 28,311,07 on May 9.
Consumer Confidence Up in Japan—EWJ Rises by 1.22%
Consumer confidence is growing in the land of the rising sun, according to a report released by the Cabinet Office in Japan. Abenonics appear to be working.
Why Commodity Trading Advisors Fare Well When Nothing Else Works
CTAs (commodity trading advisors) offer diversification benefits (commodity exposure when the equity markets are down), along with liquidity.
Japanese corporates’ increased share buybacks could support markets
Japanese companies are more shareholder-friendly, as the government pushes to strengthen corporate governance. Stock buybacks have reached their highest level in six years in an effort to boost return on equity.
Asian Markets Trade Higher amid Global Market Rally
After regaining some strength on Tuesday amid improved global market sentiment, China’s Shanghai Composite Index continued to move higher.
Why IBM Is so Focused on Blockchain
IBM is showing serious interest in blockchain technology, which is currently seen as a hot commodity in the financial world.
What’s behind Malaysia’s Large Trade Surplus in June 2017?
Malaysia’s trade surplus jumped to 9.9 billion Malaysian ringgit (MYR) (about $2.3 billion as of August 11, 2017) in June 2017—an 80% rise YoY.
How Does a Negative Interest Rate Policy Affect Gold Investments?
Under a negative interest rate policy, people are charged on their deposits with banks, and banks are charged for their deposits with the central bank.
Behind Take-Two Interactive’s Climb in August
Take-Two Interactive saw its stock rise 23% in August 2017 and closed the month at $97.79. Take-Two is now trading 135% above its 52-week low of $41.7.
What Paul Krugman Thinks about Japan’s Yield Curve Control Policy
In its latest policy move, the Bank of Japan left rates unchanged and delayed inflation target timings for the Japanese economy (EWJ) (HEWJ) (DXJ).
Why emerging markets offer far less “fiscal baggage”
Finally, the majority of the emerging market countries have much less “fiscal baggage” than their developed market counterparts.
UCS Drove Cisco’s Data Center Business Growth in Fiscal 3Q15
Cisco’s Data Center business continues to have strong growth. Its Data Center business had a YoY revenue growth rate of 21%—the highest among its other segments.
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.”
Will the Fed Have to Use More Unconventional Measures?
Global monetary policy is unconventional. From an era of lowering interest rates to boost economic growth, central bankers are taking rates into negative territory.
Are Prime Minister Modi’s Reforms Boosting FDI in India in 2017?
The implementation of the Goods and Services Tax (or GST) is expected to boost India’s medium-term economic growth above 8%, according to government data.
Can European Indexes Rally in the Current Global Turmoil?
In the current global scenario, the possibility of further devaluation of the Chinese yuan is a major concern for global equity markets. The Chinese PMI data released on January 31, 2016, indicated a slowdown in the Chinese economy.
Bill Gross’s Views on Growth and Inflation
Gross believes that money has stopped generating growth and inflation. Equity prices are artificially elevated, and negative yields are guaranteeing capital losses.
The Falling Demand For Oil, Impact On Prices
With China in a less oil-intensive stage of development, the demand for oil could stay low for a while.
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 […]
How APAC Compares with Alphabet’s Other Regions
The US is Alphabet’s top region by revenues with over $12.9 billion in revenues from the US in 3Q17.
Spotify’s Valuation Increases Despite a Threat from Apple
Spotify earns the bulk of its revenues from subscriptions and only a small amount from advertising. Investors prefer the subscription model.
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 […]
Why some bad news may be good news for international stocks
Bad news may be good news for international stocks. Europe is struggling with deflationary headwinds and Japan is suffering under the burden of last April’s hike in the consumption tax.
Apple’s Music Streaming Service Has Ample Growth Potential
In spite of the competition, Apple will have ample opportunities to grow its music streaming service. It will quickly expand its service to countries where competition is less.
PC Sales Fall in 2Q15 due to the Fall in PC Shipments
On July 9, Gartner reported that global PC shipments fell by 9.50% to 68.4 million units on a YoY basis in 2Q15—the steepest fall recorded since 3Q13.
Bank of Japan Maintained the Status Quo: Is QE Working for Japan?
The Bank of Japan (or BoJ) maintained the status quo in its recent monetary policy review meeting on April 28, 2016.
Bank of Japan announces QQE2, expanded monetary stimulus
At its monetary policy meeting held on October 31, the Bank of Japan (or BOJ) announced new stimulus measures. The measures come in addition to those it announced earlier.
Japanese Yen Rose on Positive GDP Numbers
The Japanese yen gained early on December 8, 2015, as GDP (gross domestic product) figures were upwardly revised.
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 […]
Can GoPro’s Management Successfully Turn the Company Around?
GoPro (GPRO) announced its first-quarter results on May 3, and the company’s stock has risen almost 34% since then.
Banking Stocks Dragged Down EWJ for the Second Straight Day
To understand what drove EWJ and what pulled it down on November 27, 2015, it’s important for investors to analyze the performance of the various industries in EWJ that day.
Facebook Messenger’s Video Calling Feature Will Attract More Users
On April 27, Facebook added the video calling feature to Messenger, according to Facebook’s press release. This feature makes Messenger an attractive app.
US infrastructure is crumbling: Implications for investors
BlackRock Chairman and CEO Larry Fink reveals how one of the nation’s greatest challenges could also be the next big investment opportunity.
What Do Analysts Expect from GoPro’s 4Q16 Earnings?
Analysts estimate that GoPro will post revenues of ~$577.0 million for 4Q16, with a low estimate of $515.2 million and a high estimate of ~$608.8 million.
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 […]
Why Is a Decrease in Operating Costs so Important to Seagate?
As the HDD segment has only three major players—Seagate, Western Digital, and Toshiba—it’s unlikely that HDDs will get cheap enough to drive demand further.