The Chinese Year of the Horse is generally considered one of the better years to be born in, but investors have reason to worry as China faces many challenges, as do many other countries by extension since it is the world’s second-largest economy.
While emerging markets account for 51% of global GDP, they represent only 12% of global stock market capitalization, according to BlackRock. This means there's tremendous room for growth and opportunity for investors. But this also doesn't mean that the countries with the highest GDP growth offer the best returns.
Where the global economy may or may not go, what the Federal Reserve and other central banks may or may not do, whether “Abenomics” in Japan works – all fodder these days for those who expect volatility to come back to the financial markets.
We have commented numerous times on the inexorable rise in Spanish non-performing loans (NPLs). Since the Spanish economy started to weaken at the end of 2006, NPLs have been rising sharply; but the subsequent collapse of the Spanish property market exacerbated the matter further, causing a spike in NPLs in 2007 and 2008. Since then, the Euro area crisis and subsequent sharp rise in unemployment have led NPLs at Spanish banks to make new record highs.
By Dividendinvestr:We analyzed the stocks which have been recommended by Cramer on Mad Money during the last 30 days. We don't think we have heard the end of the European debt crisis yet. As such, we prefer investing in Cramer's fundamentally strong stock picks. Using the stock screener at finviz.com, we picked the stocks with the lowest PE ratios and the low debt ratios.
A POTENTIAL problem with the argument I make in the previous post is that not everything people need is virtual. Americans still need to eat, and heat and cool their homes, and get around, and so forth. Those tasks require real resources. Now, some of those real resources are getting cheaper. Many appliances, for instance, are better and cheaper than they've ever been.