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Author: mandmweb

Should You Be Investing Offshore?

The US stock market rally may have run its course. But the old saying is that there is always a bull market somewhere. Should you be investing in foreign stocks? Money Watch writes about why foreign stocks are beckoning US investors. Investors in Wall Street’s long-running bull market are obviously a very happy bunch. But many who now question just how long the party will hold up have started looking elsewhere to move at least part of their money. And these days, the international equity markets are beckoning – enticingly so. Indeed, recent trends have fueled rallies in Europe and the emerging markets, analysts point out, although the US equity market continues to have an enormous lead on the rest of the world after the financial crisis. Many global market analysts note that prices are no longer cheap by historical standards, but even so, international stocks look more favorable compared with US stocks. As earnings continue to drive growth the best places to be may well be Europe or in emerging markets. Further down the list is China where there is still great promise but also increasing risk based on excess manufacturing capacity and an awful lot of debt that just keeps increasing. The underlying risk in investing in China is still that the government controls the economy. An example is the recent shadow bank clampdown that briefly drove...

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Should Investors Be Scared as Markets Cool Off?

Did you lose a lot of money in the 2008 stock market and real estate market crashes? If so you probably wish you had listened to that little voice in your head that said it was time to take profits and sit on cash for a while. It was not like there was no warning. Look at Google Finance and you can see how the SPDR S&P 500 ETF Trust peaked in late 2007! For the next twelve months the market was in an ever-steeper decline. SPDR S&P 500 ETF Trust Anyone who listened to that little voice and...

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What Are Some Safe Investment Options Today?

Where should you invest today as the stock market reaches new highs and vehicles like bitcoin sky rocket? Are you into market timing or long term investment? Either way the best advice comes from legendary investor, Warren Buffett. His two rules for investment are these. Rule one: Do not lose money. Rule two: Remember rule number one! If you have made some money in the market in the last few years or if you have sat on the sidelines and want to get in, what are some safe investment options today? The Promise of Trump or Not The shock of Trump winning the presidency wore off very fast and a market that tanked overnight has grown steadily ever since. Pundits have assumed that the promise of Trump to lower taxes, deregulate, bring offshore corporate cash back home and stimulate the economy with massive infrastructure spending have been the drivers of the market. But very little of the Trump promise has come to pass. Bloomberg writes that Trump policies have done nothing for stocks and it has been strong corporate earnings that have sustained the market rally. Decomposing stock returns over the last year, our analysis shows that earnings growth is responsible for most of the appreciation in equities. While analysts assessed the potential impact on earnings from potential corporate tax changes, the recovery in corporate earnings was underway well...

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Is It Time to Sell GM?

GM was the biggest corporation in the world back in its heyday. And then, decades later, it went into bankruptcy during the first days of the Great Recession. GM is back on its feet but what is its future? We asked is GM a good investment in an article 7 years ago. Despite expectations of an opening stock price for the GM IPO of $33 the stock opened at nearly $35.50. The question, “is GM a good investment,” seemed to be answered with a resounding, “yes.” The stock rose to nearly $36 within minutes until profit taking took the new General Motors stock down to below $35 by 10 am EST. The stock recovered to near $36 again before starting a steady decline throughout the day. So much for the first day after GM stock returned from the dead. For the long term investor the question is not such much the hoopla of first day IPO sales and day traders taking profits. The question had to do with making a profit and steadily increasing intrinsic stock value for GM investors. In the days of GM dominance this had to do with making an attractive and reliable car at a time when Detroit could expect to sell more cars each and every year. Now with electric cars, self-driving cars and fewer cars in future the question is who can make...

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How Do Events in Japan Help or Hurt Your Investments?

In the investing world it helps to pay attention to what is going on throughout the world. When Japan was the economic powerhouse of the 1980s they were buying up properties in the USA and their stock market threatened to eclipse that of the USA. Even after the economic collapse caused by hidden debt and subsequent deflation Japan´s currency has remained a safe haven and events in Japan still affect Asia, Europe and North America. How do events in Japan help or hurt your investments today? Reuters provides a small example after a victory of Prime Minister Abe´s ruling party in Japan. The Abe approach to the Japanese economy is to stimulate it with an inflationary policies. This is referred to as Abenomics and a victory for Abenomics lifts world stocks as well as the dollar. Japanese Prime Minister Shinzo Abe’s election victory lifted world stocks and the dollar on Monday, relegating concerns about Spain’s escalating political crisis to little more than a blip on the market radar. Abe’s emphatic win, which heralds a continuation of Japan’s hyper-easy monetary policy, kept risk-on bets in play after fresh optimism about tax cuts in the United States had pushed Wall Street to a new record on Friday. U.S. stock index futures pointed to a higher open for Wall Street, tracking gains for other major stock markets. The spillover from the Abe...

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