Dog’s dinner in the BRIC nations

To me the old Wall Street expression “stocks climb a wall of worry” describes the US equity market’s current rise, with the S&P 500 up 12.76% YTD as of yesterday’s close. Still, because of the wobbly / deteriorating fundamentals of the American economy, as well as relatively sharp rise in share prices, along with [...]

Gold’s run done?

Gold compared to the S&P 500, 2002 to 2012

Gold has been getting hit hard over the past week since the most recent FOMC minutes indicate few signs of Quantitative Easing, part 3. In fact some are reporting that gold traders now are turning bearish for the first time in 2012. The chart above [...]

The 2012 Currency Wars

Developing market currencies compared to the US Dollar, YTD, 2012

With the outset of the 2007 Credit Crunch we saw a massive deflationary wave sweep across most of the developed nations. In response the United States sharply devalued the Dollar by a combination of record low interest rates and Quantitative Easing. The US Dollar [...]

Where is your money in 2012?

BRIC stock markets compared to S&P 500, year to date peformance as of March 27th 2012

I think we all know the routine by now: Bernanke speaks and the stock market reacts. And expectations are starting to increase that The Fed will once again pump money into the US economy, perhaps as soon as [...]

Sluggish and indebted economies, part 2

US & BRIC nations, comparison of gross government debt to GDP ratio

A reader asked about debt levels of some developing countries, the BRIC nations specifically. Gross government debt to GDP ratios for The United States and The BRIC nations are presented above. Clearly America, like most developed nations, carries relatively high levels of [...]

Money is moving into the MIST nations …

MIST nations – Mexico, Indonesia, South Africa & Turkey, 2009 to 2012

Remember all the hype about the BRIC nations – Brazil, Russia, India & China? So last century guys. Going forward the money seems to be moving to the MIST – Mexico, Indonesia, South Africa and Turkey – nations.

The chart [...]

About those BRIC nations …

This year seen a bloodbath in the equity markets, BRIC nations included.

Brazil, the Bovespa ($BVSP) down 21% YTD, Russia, the RTS ($RTSI) down 38% YTD, India, the Sensex ($BSE) down 20.5% YTD and China, Shanghai Composite Exchange ($SSEC) down 24.2% YTD.

Since the generally accepted definition of a bear market is [...]