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Recent Posts
Meta
Merkel launches new round of coalition talks – EuroNews
Posted in Euro, Germany, Politics, Uncategorized
Tagged Angela Merkel, Coalition Talks, Germany
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Global Risk Monitor – January 5


Posted in Daily Risk Monitor, Uncategorized
Tagged bonds, Commodities, Currencies, Global equity markets, Performance, Stocks
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Making The World Great Again
Maybe President Trump should not read this but last year was all about “Making The World Great Again.”
Financial Markets
As the data and graphs illustrate below, the U.S. stock market was in the bottom quintile of performance in dollar terms. The ETF table does not include the Argentina country ETF, which was up over 53 percent in 2017.
Some of the rest or world’s outperformance was due to dollar weakness, which fell against the euro by almost 15 percent and was down against almost all G20 currencies, ex/ Argentina and Turkey, which experienced significant drops due to inflation differentials. The dollar had small gains versus Brazil and Indonesia.
Economy
Furthermore, the rest of the world’s major economies also exceeded expectations. U.S GDP growth was third among G7 countries, trailing Canada and Germany.
The U.S. economy just met expectations, however, whereas other G7 economies significantly outperformed expectations. The U.S. recovery is much more mature than most of the G7, which may explain the positive economic surprises.
Upshot
Hey, but we ain’t complaining. The U.S. markets and economy had a banner year. Hats off to those lifting the heavy lumber (up over 40 percent in 2017, BTW) to make it happen. However, keep it in a global perspective, comrades!
Let’s see what 2018 brings.
After 30 years in the markets, we have learned it usually pays to expect the unexpected. Good luck this year!



Posted in Currency, Dollar, Equities, Uncategorized
Tagged 2017 Equity Returns, dollar, Global ETFs
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The Year In Review
An incredible year in the markets. Here’s a quick snapshot:
Fixed-income
– The high yielders significantly outperformed;
– Greece 10-year yield down 300 bps in 2017;
– China 10-year moved 85 bps higher to around 4 percent;
– The U.S. yield curve pancaked with the 10-2’s spread 73 bps lower;
– Junk tighter with the dash for trash outperforming. CCC in 141 bps;
– Greece and Portugal 10-year tightened bigly against the German bund;
Currency
– Dollar index down almost 10 percent;
– Euro/$ up over 14 percent;
– Dollar/Argie peso up 17 percent due to inflation differentials. Ditto for Turkish lira;
– Dollar/Korea 11 ½ percent weaker. Should relieve some protectionist pressure.
Stocks
– 2017 was the year of emerging markets catch-up trade;
– Argentina up 78 percent in local currency, over 50 percent in dollar terms;
– Hang Seng up 36 percent;
– Russia flat;
Other Risk Indicators
– 2017 was a big year for tech;
– U.S. semiconductor ETF up over 36 percent;
– Dow up 25 percent, almost putting in Top 10 annual return;

– Energy ETF down 4 percent even though commodity up over 10 percent;
Commodities
– Lumber futures up over 40 percent on protectionist measures and natural disasters;
– Industrial metals performed well. Copper futures up over 30 percent;
– Iron ore made a nice second-half
– Crude up 12 percent;
– Grains traded horribly;
– Natural gas regressed to mean after the big gains of 2016.

Posted in Bonds, Commodities, Crude Oil, Currency, Equities, Uncategorized, Week in Review
Tagged bonds, Commodities, Currencies, Global Markets, Performance, Stocks, Year In Review
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Happy New Year!

Posted in Demographics, Uncategorized
Tagged Census Bureau, Happy New Year, U.S. Population, World Population
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Global Risk Monitor – December 29


Posted in Daily Risk Monitor, Uncategorized
Tagged bonds, Commodities, Currencies, Global equity markets, Performance, Stocks
2 Comments
QOTD: One Consequence Of Fake News & A Big One
Denying an existential threat threatens our existence. – The Guardian
https://twitter.com/poniewozik/status/944186054172651520
Posted in Quote of the Day, Uncategorized
Tagged Climate Change, Quotes, The Guardian
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FT Forecasts 2018: Fastest global growth since the crisis
The FT’s chief economics commentator Martin Wolf predicts that next year will see the fastest global economic growth since before the financial crisis. Unemployment will fall and productivity will likely pick up before signs of overheating emerge, forcing a potential correction in markets ► Subscribe to FT.com here: http://bit.ly/2r8RJzM







