Global Growth: Rock Steady
Global economic growth continues to be respectable and broad based, with only a few laggards. The current selloff hasn’t changed this, and the synchronization of this economic growth remains intact.
Mining 2018: Selective Strength
Miners who control costs, even more so than increasing production, are the ones who will do well in this current cycle, especially with China’s expected slowdown. Our favorite of the bunch remains a key Wealth Builders Portfolio member.
Cryptocurrencies: 1000 + 1 (Bitcoin) Nights
At the end of the day, cryptocurrencies are all about the technology and science involved, which needs to be respected. But when it comes to bitcoin, people will realize that there are few people who actually spend them, meaning it won’t become the payment system its creator envisaged.
Gold is The Hedge
With the market bull running since 2009, investors should start adding gold to their portfolios. Keep in mind that gold gains in value during times of geopolitical uncertainty, when investors worry about monetary issues or when the stock market experiences a sharp selloff.
Bull to Bubble? Global Investors Should Pick Carefully
Global growth trades will prove to be the winners in this last phase of the bull market. But success with them will require accuracy and agility. Outperformance will favor strong stock pickers, as investment correlations that favored passive investment strategies break down while the bull market nears its end. Emerging markets should continue to outperform for the rest of the year.
China: Buying Oil
On a price to book metric, the energy sector trades at a 50 percent discount to its 20-year average. That makes it the cheapest sector in the emerging markets universe. Our favorite company fits well with our Asia-focused investment thesis and current geopolitical trends.
World Markets: Bubble Time
Investment correlations that favored passive investment strategies are likely to break down while the bull market nears its end, favoring strong pickers. Look to emerging markets for some of the best opportunities.
Europe’s Synchronized Growth
Four months into the year and the global economy is in the midst of synchronized growth that should allow it to grow around 3.5 percent this year. China’s solid growth, India’s recovery after the monetarization jitters and the eurozone’s stronger-than-expected growth have been the catalysts for the strong showing this year.
Europe: Things are Good
The current policies of the ECB were designed to fight deflation and financial fragmentation in the eurozone. Currently, though, stronger economic activity, easier access to credit, lower borrowing rates and weakening deflation pressures open the door for tightening, even if only gradual in nature.
Mining: Buying the Dip
The recent weakness in the market, and the mining sector in particular, is an opportunity to re-enter. And two of our favorites are now members of the Wealth Builders Portfolio.