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When it Comes to China, Australia Shows Investors How to Maximize Profits
A $15 billion deal for liquefied natural gas (LNG) involving Australia, China and global-oil heavyweight Exxon-Mobil Corp. (NYSE: XOM) has prompted many investors to worry that China may be using its global-markets muscle to "paper over" cracks in the global economy. In reality, however, this mega-deal is a harbinger of what's to come, and highlights [...]
Semiconductor and Electronics Makers Anticipate a Bounce in Business Spending Next Year
A longtime investment adage holds that "As goes Intel, so goes the rest of the semiconductor industry." And as goes the semiconductor industry, so goes the U.S. economy. These days, microchips are present in virtually every type of product – from coffee makers to cars: If it plugs into the wall or takes batteries, chances [...]
Landslide Election Victory in Japan Will Lead to an Avalanche of Future Profits For Global Investors
When it comes to Japan, political change should translate into long-term profits for global investors. After 54 years of near-single-party rule – not to mention two decades of economic malaise – it's not surprising that voters eager for change delivered a landslide election victory to the opposition in that key Asian nation. Last weekend's Japanese [...]
Is Venezuela's Stagflation the Beginning of the End for Chavez?
It wasn't long ago that Venezuelan President Hugo Chavez's decision to end the functional independence of the state oil company, Petroleos de Venezuela SA (PDVSA), and bring its revenue under his control resulted in a failed coup that very nearly cost him his post. Now, Chavez's aggressive economic policies are again being called into question, this time as the [...]
The U.S. Housing Market's False Dawn
Is the U.S. housing market truly at a turning point, as investors seem to increasingly believe? Or is this actually a false dawn, meaning that there are problems and pain ahead for those who turned bullish too soon? New home sales jumped almost 10% in July, while the Case-Shiller home price index rose for the [...]
Key Indicators Point to a Rough September for U.S. Stocks
When the "Great Crash" came in 1929, it came in October. So, too, did the infamous "Crash of '87." And last year, during a tortuous October that led to even lower lows in the months to come, the Standard & Poor's 500 Index lost 19% of its value in just 30 days. Investors can be [...]
Soaring Prices for AIG, Fannie and Other Financial Stocks Sending Mixed Messages to Investors
Three of the financial institutions that were key catalysts to the global financial crisis – and that owe the federal government billions of dollars as a direct result of those problems – have seen their shares triple in price so far this month. That could signal that a big rebound in bank-sector earnings is just [...]
China Landing Natural Gas Deals as Prices Plummet
With large purchases of iron ore, copper and oil, China has been taking full advantage of depressed commodities prices and excess production capacity. Now, the Red Dragon is making its presence felt in the natural gas market – landing two blockbuster deals in the past two weeks. The first was an unprecedented $41 billion liquefied [...]
China Curbs Bank Lending but Vows to Keep Liquidity High
Beijing continued a delicate balancing act yesterday (Wednesday), vowing to keep stoking its economy with funding from its $787 billion stimulus program even as it implements new controls on bank lending. After spending three days visiting the restive eastern province of Zhejiang, Premier Wen Jiabao argued for maintaining the loose economic policies implemented under the [...]
With Reappointment in the Bag, Fed Chairman Ben Bernanke Turns to Face Troublesome New Challenges
For U.S. Federal Reserve Chairman Ben S. Bernanke, the biggest challenges are still to come. U.S. President Barack Obama yesterday (Tuesday) nominated Bernanke for a second four-year term as chairman of the U.S. Federal Reserve. The appointment was mildly controversial and must be approved by the Senate, but lawmakers and investors overwhelmingly approved of the [...]
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