Mining stocks have moved to a momentum-driven phase, a change that suggests it’s time to close positions and book profits. In the meantime, oil prices and global growth are two critical factors when considering new investments.
A quick review of productivity and wage-inflation theory explains the difference between the current slow-growth period and previous bull markets. It’s time to be cautious and be ready to take action if the Federal Reserve increases rates.
The velocity of money has slowed significantly since the Great Recession, blunting the effectiveness of the Federal Reserve’s efforts to stimulate the economy through quantitative easing and ultra-low interest rates.
The creation of a real estate sector in the S&P 500 validates real estate investment trusts (REIT) as an asset class. But sky-high valuations mean that investors may not want to RSVP to this coming-out party.
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