Global Market Commentary, Analysis and Investments
It may come as a surprise to some that both the S&P 500 and the Russell 2000 are both considerably more volatile than gold bullion.
We believe that each asset class has its own DNA when it comes to volatility. You can see this in the chart above, which shows the rolling 12-month volatility over the past 10 years for gold and gold equities compared to key large-cap and small-cap stock indexes.
[Read more...]On Tuesday, Tesla became the first American automaker to go public since 1956, as shares began trading under the ticker TSLA on the Nasdaq. With its most expensive car selling for more than $100k, Tesla is looking to strike a chord with wealthy yet environmentally conscious car buyers. Later this year, Chevrolet hopes its Volt (a price tag about half the size of the Tesla Roadster) will become the first electric car for the masses.
[Read more...]Many Asian countries have strong affinity for gold, with Vietnam apparently at the top of the list. On a per-capita-income basis, Vietnam consumes twice as much gold as India and 10 times that of China.
Vietnam's gold market has blossomed in response to a lack of confidence in the country's currency, according to a story in yesterday's Financial Times. Since the beginning of 2009, the Vietnamese dong has lost 11 percent of its official value, while gold has risen roughly 42 percent in U.S. dollar terms.
[Read more...]South Africa takes to the world stage today as it hosts the first World Cup to be played on the African continent. For the next 30 days, the eyes of the globe will be watching Rooney, Cristiano Ronaldo, Maicon and Messi battle it out for world soccer supremacy.
South Africa's $287 billion economy is already the largest in Africa and it's estimated that the World Cup will generate 400,000 jobs and contribute $7.3 billion to the country's GDP, according to research firm Grant Thornton. It estimates 450,000 tourists will visit the country spending a total of $1.1 billion.
[Read more...]Gold touched an intraday high of $1,254 in U.S. dollar terms today but its appreciation in Europe’s major currencies has been the story for the past few weeks.
[Read more...] Urban populations are growing in Asia and may hold the key to the region’s future economic growth. The global urban population is expected to grow by 1.6 billion people by 2025, 40 percent of that coming from China and India alone.
By 2025, China’s urban population is expected to be three times that of the U.S. and India’s is expected to be double.
[Read more...]Over the past few decades, sovereign wealth funds (SWFs) have become the preferred way for oil-rich nations to diversify their economies away from oil.
SWFs are “special investment funds created or owned by governments to hold foreign assets for long-term purposes,” according to the International Monetary Fund (IMF). They can also be used for stabilization and short-term liquidity.
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Brazil Feeds the World
Cheap labor and a good climate for crops have positioned Brazil to make gains in agriculture. This week we sent global strategist Jack Dzierwa (pictured here) south for a look at opportunities.
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