It takes two to Tango. And in the case of Trump’s threatened use of the one-China policy as a bargaining chip, the most important partners are probably not China and the U.S., but China and Taiwan. The current spat with China has the potential to gravely harm the world’s economy and at its extreme bring back a form of the Cold War—or even something worse. No one wants that kind of outcome. Read more about Trump Plays a Dangerous Card 12-12-16
Today’s initial reaction to the landslide defeat of the Italian referendum and subsequent resignation of Matteo Renzi can be likened to the feeling of relief after a severe earthquake has left your home temporarily undamaged. Italy is the third largest economy in Europe and the Eurozone. Read more about Europe Faces Trouble Ahead 12-05-16
Donald Trump's victory on election night has greatly changed the tone of the market. In the December issue Dr. Leeb discusses how best to proceed and what stocks should most benefit from the Trump presidency. He highlights two Chinese infrastructure plays.
In the Growth Portfolio, we sell one healthcare stock while reviewing a number of other stocks that we believe still make good investments. In Income/Value, we add two new members, a REIT and an industrial play. In Small-Cap, we add a new cyber-security leader that we've monitored for a long time. Check the issue for much more. Read more about Volume 14 Issue 12
The year started with a thud. In early January, Chinese stocks fell over 20 percent after its government issued some poor economic news—notably more than six months of negative corporate profit growth, weak commodities and a weak yuan. All Chinese economic data stank. It surprised many investors to see how fast China’s foul data spread westward. Read more about America Lost Its Seat as Economic Driver 11-28-16
The message of the market remains the same. We now see a seminal change both in investments and in the entire economic calculus. Unfortunately, we still don’t know exactly what that change will entail or how to define it. While infrastructure build-out by a Trump administration could compose part of the new equation, it will likely account for a relatively small part. Read more about The Market Recognizes Seminal Change 11-21-16