Chart of the Day
If Risk Rises, Commodities Could Be an Alternative to Gold
Chart of the Day: If risk rises, a better alternative to gold could be commodities. Slowing economies, especially emerging markets, caused commodity price fall. Risk is that the whole world slows.
Read MoreGold Could Be an Alternative If Profits Fail to Rise and Inflation Heats Up
Chart of the Day: First risk is that US rates rise and Trump is unable to jump start corporate profits. Second is that inflation gets out of control causing Fed to raise more aggressively. If both happened, then gold could be attractive.
Read MoreMalaysia Not So Attractive, But Low Volatility
Chart of the Day: Malaysia appears to be a less attractive market these days. Low ROE of 9.7% and high PE of 16.3x. Growth forecasts are low. The good news, volatility is low.
Read MoreMalaysia Currently Does Not Look Very Attractive
Malaysia has low ROE relative to the world and looks expensive on a PB basis given the low ROE. Earnings and price momentum are both low. Good news is that risk is low.
Read MoreRising US Interest Rates Could Be Bad for Both Stocks and Bonds
Chart of the Day: For nearly 10 years bonds outperformed stocks; driven by steady fall in interest rates. Rising interest rates would be bad for both asset classes unless the Trump administration can jump start corporate profits.
Read MoreHigh PE Means That without Earnings Surge Market Rally Is at Risk
Chart of the Day: Rally was partially fueled by near-zero interest rates. Without a sustainable rise in profit margins US stock market rally could be finished.
Read MoreThird Stock Market Boom since 1994, Already Longest, about to Be Strongest
Chart of the Day: The US stock market is now up 215%. Of the last three stock market rallies, this is the longest at 97 months and it is about to be the highest.
Read MoreIf Trump Sparks US Profit Recovery Then Market Run Could Continue
Chart of the Day: Relatively low US profit margin means there is a chance for profit recovery. But for now, stock prices don’t seem to be supported by earnings.
Read MoreFed Has Hit Its Dual Targets, Time to Get Back to Normal Rates
Chart of the Day: Fed has an inflation target of 2% and an unemployment target of 5%. With both targets now hit the pressure on the Fed is to start to raise rates.
Read MoreTiny Interest Rate Hikes Are Painful for US Gov’t
Chart of the Day: Low rates allowed US Government debt to double with no rise in interest spending. But, if rates slowly double interest as a percentage of total spending would double to 10%.
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