Earlier this month the government of Canada was finally forced to admit that the country had been in recession for the first half of 2015. The news could not have arrived at a worse time for the incumbent conservative Prime Minister Harper, facing upcoming national elections in October. A number of investors have recently soured on the Canadian economy, reeling from low crude prices and a general global collapse in commodity prices. National statistics indicate that Canada’s economy contracted 0.08% in the […]
Global Investing Blog
The Refugee Crisis In Europe: The Price For A Failed Foreign Policy
One only has to observe the chaos occurring in Southern and Southeastern Europe to understand the something has gone seriously wrong. Hundreds of thousands of refugees began migrating from the Middle East and North Africa this summer in numbers unseen in Europe since the end of the 1940’s. The citizens of Europe are now discovering the price that will be paid, as a result of the failure of their governments in the conduct of foreign policy over the last few years. The […]
The Politics Of Appeasement In The Age Of Obama
Historically, we have been in this present predicament before. A time when the world, particularly the western democracies are weary of war. The populace soon chooses to elect leaders that reflect that sentiment in the hope that there will be a return to normalcy. These politicians came to power with the promise to end war and to engage in policies that will prevent future conflicts. It is little wonder that these leaders will cling to their line of reasoning, even as it […]
The End Of Rapid Growth In China
An end of an era arrived in China during the summer of 2015. For investors the ongoing downward trend in the domestic market, finally culminated in a massive sell off that occurred on August 24th. Chinese officials watched in disbelief, as 8.5% of stock valuation disappeared in a matter of hours. It has since been identified as Black Monday. It was the largest one day drop in the Chinese Stock Market since 2007. It provided a signal to global investors everywhere that […]
The Economy Of Brazil: Where Is The Growth?
The beginning of the 21st century was full promise for Brazil. This was going to be the time when the country would move from being an emerging market to the status of developed first world nation, within the first two decades. Economic growth accelerated from 3% in 2002 to 6% by 2007. After a brief interruption as a result of the financial crisis and resulting economic downturn in 2009, growth surged in 2010 approaching 8%. Foreign investment was pouring in. The boom in […]
The Next Round Of Quantitative Easing In The United States Is Coming Soon
As the controversy about raising interest rates slightly continues to dominant the headlines and investors worry about the impact this would have on the markets, little attention is being given to the rapid slowdown in global growth. In the developed world only two countries are making plans to raise interest rates in 2015. Both the United States and the United Kingdom believe it is time to move away from historic low rates, that have created numerous distortions in their domestic economies. Although […]
The Bear Market Is Almost Here
The bear began to circle global markets last Tuesday, which proved to be the beginning of a major downturn. By the end of the trading week stocks and equities would be officially in correction territory, having lost 10.1% valuation since last May. In the United States the DJIA (Dow Jones Industrial Average) alone lost 5.8% in four days. Markets abroad were no better, with both Asia and Europe reporting big declines. Investors were optimistic that the new week would bring recovery. Their […]
The Economy Of Japan Remains Mired In Recession
Despite the massive quantitative easing and stimulus spending the country of Japan remains mired in recession. The economy shrank at an annualized pace of 1.6% from April to June. Consumers are cutting back on spending and exports seem to be in a new slump, as the world economy slows further. The question for the reformist government of Japan is what to do next, to rekindle growth and investment in the world’s second largest developed economy? Japan is the third largest economy in […]
Russia Moves To Expand War In Europe
Although the war in eastern Ukraine has been simmering for months, the escalation in violence is continuing as summer turns into fall. There has been a false sense of complacency in the West, that the situation on the ground has been frozen and that the danger of a major war has been mostly averted. Nothing could be further from the truth. President Vladimir Putin from Russia knows his window of opportunity is closing and that he must move forward, to achieve his […]
The Global War In Currency Escalates As China Devalues Yuan
This week saw an escalation in the global currency war when China decided to embark on a major devaluation. The immediate result was a 1.8% drop in the yuan on Tuesday against the American dollar and 2.2% in relation to the Euro. It was the largest single day plunge for the currency in decades. On Wednesday, Chinese authorities allowed the yuan to drop even further, bringing the total depreciation equal to about 4% against the dollar. A third cut will be coming […]