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The Stronger U.S. Dollar Is Actually Destroying the Markets

By , Global Credit Strategist, Money Morning • @MichaelELewitt -

best investments

The U.S. dollar remains the most important financial instrument in the world. The dollar rally has been the single most decisive factor in determining economic growth (or weakness) and market direction since early 2014.

Right now, that’s not a good thing. A stronger dollar has a far-reaching, negative domino effect that pressures global markets in all directions.

And that pressure is nearing the breaking point…

The Next Wave of Stimulus Brings Us This Multitrillion-Dollar Opportunity

By , Money Morning -

stimulus

Eight long years of excruciatingly accommodative monetary policy have done a lot to inflate asset prices and concentrate some $112 trillion in wealth in the hands of just 34 million people... but it hasn't come anywhere close to the goal of stimulating broader economic growth.

Now instead of admitting the mistake and trying structural reforms, politicians and bureaucrats have come up with yet another crackpot idea to spend their way to growth.

That means there's likely some serious "helicopter money" headed our way.

It might not achieve growth, either, but it is going to be a powerful profit catalyst for the investment I'm about to show you...

WARNING: China’s New “World Bank” Threatens U.S. Dollar

By , Money Morning -

china's new world bank

China has just made another strike against the U.S. dollar with a new “world bank” – the Asian Infrastructure Investment Bank (AIIB).

By now 57 countries have been approved to join forces in this $50 billion global economic “superpower” cooperative – and the United States is not one of them.

Here’s what China’s new world bank means for the U.S. dollar in 2015…

How Much Does Greece Owe? 4 Charts That Put Greek Debt in Perspective

By , Associate Editor, Money Morning • @TaraKateClarke -

how much does Greece owe

Greece is on track to run out of money in two weeks.

Unless officials can alter its current burn rate, the Mediterranean country will hit a cash wall on April 8, according to German newspaper Frankfurter Allgemeine Sonntagszeitung.

Exactly how much does Greece owe?

The country is 323 billion euros in debt ($352.7 billion) - more than 175% of its GDP.

These four charts help to put that number into perspective...

Swiss Franc Hurts Homeowners but Could Be a Boon for Investors

By , Money Morning -

When the Swiss National Bank de-pegged from the euro last month, the fallout was massive.

One dramatic example of its impact was that felt by Miami-based hedge fund manager Everest Capital. The firm's largest single fund lost nearly all its capital, $830 million in assets, thanks to heavy bets that the Swiss franc would decline.

Alpari U.K., a foreign exchange broker, became insolvent. New York's FXCM, an online foreign exchange trading firm, got a $300 million lifeline from Leucadia.

But just like the subprime mortgage debacle in the United States, small retail investors are caught in the crosshairs too.

Don't let yourself be one...

Greek Stocks Are Up 19% - but Don't Fall for the Rally

By , Associate Editor, Money Morning • @JimBach22 -

greek stocks

Recently, a chorus of voices have deemed the Greek stock market undervalued.

And while they looked to have bottomed out, Greece's new government is starting to renegotiate its debts with the Eurozone. Everything is way too fragile for Greece, and this sudden rally in Greek stocks is unwarranted.

Here's what you need to know about Greece right now, and why it's not worth your money...

Markets Are Profoundly Unhealthy Now

By , Global Credit Strategist, Money Morning • @MichaelELewitt -

global marketplace

2014 was the best of times and the worst of times in financial markets. Stocks rallied, of course, while bond yields and commodity prices plunged. In 2014, the S&P 500 gained 13% while the yield on 10-year Treasuries dropped from 3.03% to 2.17%, and the price of oil collapsed by 50%.

And the all-important U.S. dollar rallied as other major currencies such as the euro and the yen plunged. Investors looking for a consistent message from markets had to look elsewhere.

In January 2015, a similar theme spooled out in a completely different way...

The S&P 500 lost 3% - its worst performance in a year - while Treasuries had their best month in five years, as interest rates plunged to record lows around the world. In fact, yields on government bonds in many places are negative, a profoundly unhealthy phenomenon.

Crude oil dropped for the 7th month in a row, something it did during the 2008/9 financial crisis, even after a manic rally on Friday, January 30. The U.S. dollar continued to rally for the 7th month in a row and had its best month since May 2012.

Here's what January's action means for the rest of 2015...

Draghi's Pain Can Be Your Gain with This $10 Stock

By , Chief Investment Strategist, Money Map Report -

Draghi

Many investors expect "Super" Mario Draghi's recently announced 1.2 trillion euro stimulus program to produce big market gains just like the Fed's QE did here in the United States.

What they're missing is that not all companies are going to benefit. In fact, the vast majority won't.

How do you know if the one you want to buy is one of 'em?

...because it's tied into one or more of the six unstoppable trends we're following.

That's what we're going to talk about today...

Top Financial News: Davos' World Economic Forum Waiting on ECB

By , Associate Editor, Money Morning • @JimBach22 -

financial news

Top Financial News: The World Economic Forum kicked off today in Davos, Switzerland, and it's been grabbing headlines all across the financial press.

But the novelty of Davos wears thin quickly - it's a gathering of the world's economic elites yukking it up in one of the world's most expensive European resort towns.

Today might have been short on substance, but in the days ahead they'll be discussing more important topics...

Stock Market Today Led by PFE, AGN, and HAS News

By , Executive Producer, Money Morning -

Stock market today

Good morning! Futures forecast a decline in the stock market today from Friday's close.

What to watch today: expect a wealth of news about Japan's surprise slip in GDP growth. According to government data, the island nation saw its GDP slip by an annualized 1.7% in the third quarter. This is down from analyst expectations of 2.1% growth for the July to September period.

Here's what else you should know about the stock market today - including your "Money Morning Tip of the Day" - to make it a profitable Monday:

Vaccinate Against This Fiscal Contagion

By , Global Credit Strategist, Money Morning • @MichaelELewitt -

Editor's Note: Special Contributor Michael Lewitt publishes the highly regarded The Credit Strategist and was recognized by the Financial Times for forecasting both the financial crisis of 2008, and also the credit crisis of 2001-2002. His 2010 book, The Death of Capital: How Creative Policy Can Restore Stability (John Wiley & Sons) was included in the curriculum at the University of Michigan and Brandeis University.

The European financial crisis is often pushed out of the headlines by crises of a more incendiary variety. That might suggest the problem has diminished. It hasn't.

The saga of Portugal's Banco Espirito Santo is a sure sign to investors that the European financial crisis is anything but over. 

Mario Draghi and the European Central Bank (ECB) may keep its finger in the dike, but the dike is only going to spring more holes. 

European banks are still highly leveraged. Their investors are likely to run for the hills at the first sign of trouble, and governments are going to be reluctant to bail them out unless they feel that their collapse poses a systemic risk.

Global investors are, for the most part, shrugging off the problems at Banco Espirito Santo, but European investors are not taking things so lightly. Here's why you shouldn't, either...
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