Jason Simpkins
Investing in Sweden – A Cold Country with a Hot Economy
What comes to mind when you think of Sweden: Blonde hair, pale skin, and a pair of sullen blue eyes piercing through a whiteout – or an economy that grew 5.5% last year?
Too often, it's the former when it should be the latter.
Indeed, chances are you've never thought about investing in Sweden. But the country that is so often thought of as being cold – if it's thought of at all – is actually overheating.
The Swedish economy expanded by 5.5% last year, making it the fastest growing economy in Western Europe. Sweden's central bank, the Riksbank, was the first central bank in the European Union (EU) to raise interest rates. It has lifted its key repurchase rate five times since last July, squelching inflation.
The most recent hike came on Feb. 15 – a 0.25% increase that took the rate to 1.5%. And with the prospect of further rate increases in the short-term, the Swedish krona has risen to its highest level against the euro in 10 years.
Some manufacturers have warned that the soaring currency could undermine the country's export-led recovery, but the Swedish economy is still on pace to grow 4.4% this year.
Additionally, inflation remains low, unemployment is on the decline, and Sweden's national debt is lower now than it was in 2006.
You Heard it Here First: Silver's 30-Year High is Just the Beginning
[Editors Note: For detailed investment strategies on how to play the surge in silver prices, take a look at Money Morning's 2011 Outlook report on the subject by clicking here.]
The price of silver today (Monday) surged above $30 an ounce for the first time since 1980, after U.S. Federal Reserve Chairman Ben Bernanke indicated that further quantitative easing (QE) could be on the way.
Silver futures have gained almost 70% since August, when expectations of more QE were first discussed. Since then, the Federal Reserve has set about purchasing $600 billion of U.S. Treasuries and the Fed Chairman said on Sunday that more debt purchases are "certainly possible."
The result was a rally in precious metals, which played host to investors looking to preserve their wealth against further depreciation. The price of silver topped $30 for the first time since 1980, soaring as high as $30.09 an ounce in afternoon trading.
But that's just the beginning.
Newly-Empowered House Republicans Take Aim at Dodd-Frank Financial Reform Bill
With Republicans taking control of the House of Representatives, much of the Democratic agenda will be challenged in the months ahead. That includes the Dodd-Frank financial reform legislation, which Congressional Republicans have already pledged to weaken.
The financial reform bill passed in June and brought with it increased consumer protection, trading restrictions for big banks, and tighter regulation of financial products. However, the bill still fell short of dramatic Wall Street reform as the lobbying efforts of large financial institutions eroded the legislation's sharper points.
The original bill, for example, would have ended banks' ability to trade derivatives. But the final version was watered down to allow banks to retain certain derivatives trading units to hedge risk.
Iraq's Energy Sector Is Moving Forward – With or Without the U.S.
Iraq on Wednesday broke the record – 207 days – for the time between a parliamentary election and the formation of a government. But while Iraq's government is at a standstill, the country's energy sector remains dynamic and U.S. companies can't afford to wait for the political climate to thaw before diving in.
Iraq is slowly retaking the shape of one of the world's most prolific oil producers. Its reserves are actually 25% larger than previously thought.
"Iraq's oil reserves which are extractable are 143.1 billion barrels," Hussein al-Shahristani, Iraq's oil minister, said earlier this week, basing his comments on data provided by Organization of Petroleum Exporting Countries (OPEC).
China Using Government Muscle to Turbo Charge its Auto Industry
Having already supplanted the United States as the world's largest auto market, China is on the fast track to becoming the global leader in hybrid and electric cars.
General Motors and Chrysler were forced into bankruptcy largely because they failed to pursue more fuel-efficient models. Indeed, GM and Chrysler looked wholly unprepared as gas prices soared over $4.00 a gallon in 2008.
As GM emerges from bankruptcy – having been bailed out by the U.S. government – it will put a renewed focus on alternative energy. Unfortunately, it's too late to make a difference. As U.S. car companies sputtered amid the country's economic collapse, carmakers in China raced ahead. And with billions of dollars in government backing, they are the companies that will set the pace for the global auto market.
Can High-Speed Rail Stay On Track in the United States?
President Barack Obama last year outlined an ambitious initiative to get high-speed rail on track in the United States. But while the government's high-speed rail initiative looked good on paper, it runs the risk of being derailed by high costs and political opposition.
"Railroads were always the pride of America, and stitched us together. Now Japan, China, all of Europe have high-speed rail systems that put ours to shame," Obama said last year announcing his plan.
While most passenger trains in the United States travel at the maximum allowable speed of 79mph, trains in Europe and Asia typically travel in excess of 125mph. In France, for example, the Train Ga Grande Vitesse (TGV) travels at an average speed of 133 mph. Another French train actually reached 357.2mph in 2007, setting a new world record.
Three Ways to Brace for a Double-Dip Recession: Recession-Proof Stocks
[Editor's Note: This is the third, and final, installment of a three-part series that discusses ways investors can brace for a double-dip recession. Part I (Going for the Gold) appeared Wednesday and Part II (Going Global) appeared yesterday (Thursday).]
Today (Friday) we conclude our series on bracing for a double-dip recession.
In Part I of this investment series, "Three Ways to Brace for a Double-Dip Recession: Going for the Gold," we discussed ways investors could safeguard against the imminent decline of the U.S. dollar by buying gold.
In Part II, "Three Ways to Brace for a Double-Dip Recession: Going Global," we
explored potential investments in foreign countries that have more stable economies and better growth prospects.
And today, we're going to conclude by looking at "recession-proof" stocks right here in the United States.
RSS