There’s at least one thing that bulls and bears on the U.S. economy agree on: the dollar, the most undervalued major currency in the world, is due to rise as Europe’s sovereign debt crisis threatens the global recovery. Strategists who as recently as November were predicting the dollar would depreciate against currencies of the Group of 10 nations, now say it will climb by year-end. After weakening against all but the Mexican peso among its 16 most actively traded peers over the past decade, it has gained against 14 of them since February.
Sunday, April 22, 2012
Bullish, Bearish Economy Forecasters Agree on Strong Dollar
There’s at least one thing that bulls and bears on the U.S. economy agree on: the dollar, the most undervalued major currency in the world, is due to rise as Europe’s sovereign debt crisis threatens the global recovery. Strategists who as recently as November were predicting the dollar would depreciate against currencies of the Group of 10 nations, now say it will climb by year-end. After weakening against all but the Mexican peso among its 16 most actively traded peers over the past decade, it has gained against 14 of them since February.
Hedge Funds Cut Bullish Wagers by the Most in Four Months
Hedge funds cut their bets on higher commodity prices by the most in four months on mounting concern that Europe’s debt crisis will derail global growth and curb demand for raw materials. Money managers lowered net-long positions across 18 U.S. futures and options by 11 percent to 898,022 contracts in the week ended April 17, the most since Dec. 20, data from the Commodity Futures Trading Commission show. Bets on rising sugar prices fell the most in more than three years, while the funds anticipate declines in cotton, wheat, coffee and natural gas.
How to Make Money in Stocks Without Paying Taxes
In his wonderful book Reminiscences of a Stock Operator, Edwin Lefèvre describes learning the basics of investing by frequenting “bucket shops”—parlors that allowed customers to bet on the direction of stock movements without actually buying or selling shares. Bucket shops were outlawed in the U.S. a long time ago. So I was surprised to learn from Bloomberg this morning th
How to Pay No Taxes: 10 Strategies Used by the Rich
If you have lots of money, Tuesday, April 17, was one of the best tax days since the early 1930s: Top tax rates on ordinary income, dividends, estates, and gifts remain at or near historically low levels. That’s thanks, in part, to legislation passed in December 2010 by the 111th Congress and signed by President Barack Obama. Starting next January, rates may be headed higher.
Rusal’s $43 Billion Seven-Year Glencore Deal Feeds Fued
United Co. Rusal (486), the world’s biggest aluminum supplier, is locked in to selling $43 billion of the metal to Glencore International Plc (GLEN) over seven years in a contract that’s fueling a feud among billionaire investors, four people familiar with the accord said.
Capstone launches maiden hedge fund to outside investor
Capstone Equities Capital Management (CECM), the New York-based investment advisory firm of real estate private equity manager Capstone Equities, has launched its maiden hedge fund to outside investors nearly two years after its initial debut in May 2010, HFMWeek has learned. CECM’s offering, which pursues a value strategy making concentrated investments across the capital structure in companies with real estate and physical asset value, will target global institutional investors to raise $50m.
The Best Reason in the World to Buy Gold
Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold. China’s imports of the metal are already large, and you can guess what additional purchases are going to do to prices.
On the last day of 2011, President Obama signed the National Defense Authorization Act for Fiscal Year 2012. The NDAA, as it is called, attempts to reduce Iran’s revenue from the sale of petroleum by imposing sanctions on foreign financial institutions conducting transactions with Iranian financial institutions in connection with those sales. This provision, which essentially cuts off sanctioned institutions from the U.S. financial system, takes effect on June 28.
Effects of Climate Change Seen for Corn Prices
Researchers have found that climate change is likely to have far greater influence on the volatility of corn prices over the next three decades than factors that recently have been blamed for price swings — like oil prices, trade policies and government biofuel mandates. The new study, published on Sunday in the journal Nature Climate Change, suggests that unless farmers develop more heat-tolerant corn varieties or gradually move corn production from the United States into Canada, frequent heat waves will cause sharp price spikes.
In Support of Speculators
Speculation – particularly in energy markets – is under fire again as gas prices continue their rise. Mark Perry has posted a strong response to the blame-the-speculators crowd on his Carpe Diem blog, citing some informed logic from the likes of Milton Friedman:
“People who argue that speculation is destabilizing seldom realize that this is largely equivalent to saying that speculators lose money, since speculation can be destabilizing in general only if speculators on the average sell when the currency (commodity) is low in price and buy when it is high.” ~Milton Friedman, Essays in Positive Economics (p. 175)
Peak Oil Off: Great Game On
Peak Oil Off: Great Game On - Forbes
Peak oilers have had a pretty hard time lately. Not only have global unconventional finds flattened Hubbard’s ‘peak’, more and more conventional plays are cropping up. ‘Running out’? We have more than enough of the black stuff to incinerate ourselves several times over. Such supply side bounty has been well documented in the Americas – not just in the US and Canada, but across Latin America, offering a second pass at resource riches. Head all the way over to Australia, and you’ll see a dazzling
Peak oilers have had a pretty hard time lately. Not only have global unconventional finds flattened Hubbard’s ‘peak’, more and more conventional plays are cropping up. ‘Running out’? We have more than enough of the black stuff to incinerate ourselves several times over. Such supply side bounty has been well documented in the Americas – not just in the US and Canada, but across Latin America, offering a second pass at resource riches. Head all the way over to Australia, and you’ll see a dazzling
Futures Speculation Doesn't Increase Spot Oil Prices
Futures Speculation Doesn't Increase Spot Oil Prices - Forbes
One of the great arguments going on at present is whether or not futures speculation increases commdoity prices. This debate is happening in Europe just as much as it is in the US. And the calls for reining in such futures speculation in order to reduce commodity prices are coming thick and fast in both places.
One of the great arguments going on at present is whether or not futures speculation increases commdoity prices. This debate is happening in Europe just as much as it is in the US. And the calls for reining in such futures speculation in order to reduce commodity prices are coming thick and fast in both places.
Commodity price drop and China's role
Commodity price drop and China's role
Commodities have been sinking like stones since late February, an unusual divergence from the rallying stock markets. This relentless weakness has wreaked havoc on commodities sentiment, leading traders to abandon commodities stocks. As we all try to make sense of this surreal bloodbath, one catalyst keeps coming up. Western perceptions of the Chinese economy have been a real drag on commodities.
Commodities have been sinking like stones since late February, an unusual divergence from the rallying stock markets. This relentless weakness has wreaked havoc on commodities sentiment, leading traders to abandon commodities stocks. As we all try to make sense of this surreal bloodbath, one catalyst keeps coming up. Western perceptions of the Chinese economy have been a real drag on commodities.
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