Martin Hutchinson
Article Index
Pundits greeted Angela Merkel's convincing election win in Germany Sunday with a collective yawn. Commentators think the German economy is sluggish and over-dependent on exports, and believe that a change in the German government from a grand coalition to a center-right coalition will make little policy difference. I think that's wrong. It's an erroneous viewpoint […]
The New "Death Panel" for Savers
In their official statement Wednesday, U.S. Federal Reserve policymakers said they “continue to anticipate that economic conditions are likely to warrant exceptionally low levels of the Federal Funds Rate for an extended period.” That means interest rates will remain at artificially low levels for some time to come. And it also means the central bank’s […]
It's the Best Investment in North America – and It Isn't the United States
The U.S. stock market has run up magnificently in the last six months. The U.S. economy has begun to recover, but its performance has fallen short of expectations. And with good reason. The United States has a bigger and more-troubled financial sector than most countries. It also has a bigger overhang from the housing bubble, […]
Special Report: How the Government is Setting Us Up for a Second Subprime Crisis
[Editor's Note: Shah Gilani, a retired hedge fund manager and noted expert on the global credit crisis, predicted this developing FHA debacle in a July 2008 Money Morning essay.] Is the government creating another subprime-mortgage bubble? The first time around, the three-headed federal serpent – the Bush administration, the Treasury Department and the U.S. Federal […]
The Only Way to Profit From a Stock Market Bubble
Former U.S. Federal Reserve Chairman Alan Greenspan said it was impossible to tell a bubble while you were in it. Well Alan, I’ve got news for you: We’re in one now. The Standard & Poor’s 500 Index is up 58% from its March lows, gold has finally broken through the $1,000-an-ounce level – and may […]
The World's Most Exciting Market – Until They Spoiled it
Over the past year, Brazil has established itself as one of the most exciting markets in the world for investors. Its Bovespa stock index is up 55% this year. And the discovery of the huge new Tupi oil field off its east coast has led some investors to refer to Brazil as the "New Saudi […]
Here's Why the U.S.-China Tire Tiff Could Lead to Great Depression II
When U.S. President Barack Obama late Friday (Sept. 11) signed an order that imposed an additional duty of 35% on tires imported from China, it set up the potential for an old-fashioned trade war. Currently, global trade is down only 20%. During normal times, worldwide commerce would recover on its own. But as most investors […]
The Two Reasons it's Time to Short U.S. Stocks
The stock market is up 51% from its March 9 lows. The leading economic indicators have turned sharply positive, showing gains for each of the last four months. Manufacturing is on the rebound. And banks are promising to pay record bonuses, as their earnings have rebounded. With this recent rush of upbeat economic news, it's […]
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 […]
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 […]
Is Ben Bernanke's Reappointment Bad News For Investors?
I am now fully used to U.S. Fed Chairman Ben Bernanke's extraordinary self-regard. However, I have to admit that even I was surprised by last Friday's CBS Marketwatch headline: "We Saved the World From Disaster, Bernanke Says." Although that's an extraordinarily cheeky claim, it seems to have persuaded U.S. President Barack Obama, who yesterday (Tuesday) […]
The Secret to Building a Portfolio that Pays – in Good Markets and in Bad
With the very real possibility that the stock market recovery has outrun the global economic rebound, investors need to consider defensive investments that will provide protection and even some profits should some of the world's top stock markets take it on the chin. To be sure, stock prices in many of the markets around the […]
Why Asia Will Supplant Detroit as the Global Center of the Auto Industry
Asia is poised to become the "new" Detroit. Here in the United States, at a cost of a mere $3 billion, the "Cash-for-Clunkers" program appears to have given new hope to the U.S. auto industry. But that new hope is destined to be short-lived. It's true that – in terms of value delivered for the […]
High Frequency Trading: Wall Street's New Rent-Seeking Trick
Goldman Sachs Group Inc. (NYSE: GS) disclosed recently that it had 46 “$100 million trading days” in the second quarter of 2009. That was a record number, even for one of the biggest players on Wall Street. When the U.S. economy is facing collapse and merger and acquisition volume is way down, it seems odd […]
Four Ways to Profit From Resurgent Commodities Prices
World white sugar prices reached record levels on Aug. 10, largely because of booming demand in India where the government has lifted a ban on imports. Oil prices continue to hover around $70 a barrel, and gold is in the mid-$900 range. Meanwhile the CRB Continuous Commodity Price Index has surged to a level 30% […]