Brazil, An Emerging Market

Or an emerged market?

In our initial look at emerging markets, we saw that Brazil is included.

And if we look at its overall market characteristics, Brazil probably should be classified as an emerging economy. But in other aspects, perhaps not.

Consider today’s slightly funny example.  (more…)

Emerging market investments can add value to one’s portfolio.

On the one hand, emerging market assets provide potential diversification benefits that help lower overall portfolio risk.

At the same time, emerging markets offer potentially higher returns than investments in developed markets. This helps enhance overall portfolio expected returns.

Lower portfolio risk, higher expected returns, count me in!

Well, like any investment, there are always a few strings attached.  (more…)

(Un) Democracy in Europe

Another huge problem facing Europeans (what, they don’t have enough going for them with the Euro, fiscal crisis, high unemployment, etc.?) is the loss of democracy taking place.

I think in the long run that the loss of democracy may have the greatest impact on individuals. And will become a highly contentious issue.

Consider what happened in Greece(more…)

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Priorities of Government Bureaucrats

If a private business was managed like most countries, it would quickly go bankrupt.

The bureaucrats running government would soon destroy most companies. Their actions always seem to make government less effective and less efficient.

In business, the focus for well run companies is on the key issues.  (more…)

Is a crash in the markets coming?

I am not sure.

If one does occur, experts will look back and see many clear warning signs. And there are a multitude of red flags.

However, governments, banks, investment companies, and the like, are doing their best to avoid a calamity.  (more…)

Fiscal Lessons From Europe’s Crisis

A lot may be learned by studying the current fiscal crisis in Europe.

What policies caused today’s fiscal and economic situation in Europe?

What behaviour exacerbated the problem?

What can others learn so as to avoid getting into the same difficulties?  (more…)

Europe and the Euro Crisis

Europe continues to go through its latest financial crisis.

What has gone on and what will happen in the future?

Well, if we knew for certainty what the outcome will be, we would all be billionaires. Or, at the least, we might be running MF Global instead of Jon Corzine and they would not be in Chapter 11 bankruptcy proceedings today.

But we can go through a summary of what went on and where we are at today in Europe.  (more…)

Why the Current Market Volatility?

I am constantly asked why global equity markets are experiencing so much volatility right now.

I think there are a variety of significant factors working together to create uncertainty in the markets. Each on their own impacts market volatility (or risk), together they are a nightmare for investors.

Today a quick summary of the major variables affecting global markets.  (more…)

Following the Experts

Another day, another example of experts getting it wrong.

Today it involves the economic forecast for Hong Kong.  (more…)

Commentary on the U.S. Fed

United States Federal Reserve Chairman Ben Bernanke recently pledged to ”hold its benchmark interest rate near zero for at least through mid 2013″.

The statement was made to try and calm global markets as to Fed intentions, thus stabilizing investment markets.

Will this pledge work?  (more…)

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