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Tag Archives: emerging markets

3 Charts I’m Thankful for This Week

I hope everyone reading this had a wonderful Thanksgiving full of family, love and laughter. Even if that wasn’t your experience, there’s still much to be grateful for. Below are three charts for which I happen to be most thankful this week. 1. Americans appear to be flying again. The U.S. hit a new pandemic high last week in terms of commercial air traffic. More than 2.2. million people boarded passenger jets last Friday, November 19, according to Transportation Security Administration (TSA)...

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Reports of Gold’s Death Are Greatly Exaggerated

Back in December 1997, the Financial Times ran a now-infamous article titled “Death of Gold.” In it, the author Kenneth Gooding claimed that as an investment, “gold is a goner.” The crises of the past 10 years—the 1987 stock market crash, the Gulf War, Asia’s financial meltdown—had not resulted in higher demand. Gold was now a “mere metal” and a “bad investment,” Gooding concluded. But as it happened, reports of gold’s death were greatly exaggerated. The next decade saw the precious metal...

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What Is Shadow Inflation? It Could Be More Prevalent Than You Realize

We’re all familiar with inflation, whether it’s at the grocery store or gas pump. What cost you $10 last year might cost you $12 or more today, representing a hidden “tax” that steadily corrodes your purchasing power like rust on iron. But did you realize there’s another form of inflation that’s just as corrosive and yet is nearly impossible to measure? Some economists call it “shadow inflation,” and it refers to instances when you pay the same price for a good or service one year to the...

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Gold Is Now the Second Most Liquid Asset on Earth

U.S. Global Investors Announces a 50% Increase in Monthly Dividend   Contrary to popular belief, what’s good for the goose is not always good for the gander. This week the U.S. dollar advanced against a basket of foreign currencies to hit its highest level in about a year. For consumers and importers, this is good news, as it means the greenback offers greater purchasing power. For exporters, on the other, and for the price of gold and other commodities that are priced in U.S. dollars, this...

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Gold Passed the Evergrande “Stress Test”

It’s the biggest company you’ve never heard of—until this past week, that is. Evergrande Group, the “too big to fail” Chinese property developer, rattled markets on Monday when it missed interest payments to at least two of its lenders. This gave more than a few investors flashbacks to Lehman Brothers’ demise in 2008, which helped trigger the global financial crisis. The selloff spread to U.S. markets, and I was pleased to see that gold maintained its haven status. The yellow metal ended...

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Don’t Fall for FUD: Fear, Uncertainty and Doubt

So many headlines right now are instilling FUD in investors’ minds, which stands for Fear, Uncertainty and Doubt—from the Taliban takeover in Afghanistan, to fears over cryptocurrency, and the delta variant disrupting travel plans across the globe. Don’t let yourself fall for FUD. There’s no reason to be fearful of cryptocurrency, for example. Many like to say “only bad guys” use these digital assets, but if that’s true, then why are over 100 million people using it today? These people...

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Still Plenty of Gas in the Base Metal Rally Tank

Industrial metals are well on their way to being among the top performers of 2020, supported by red hot demand from China and global supply concerns. As of today, the MSCI Industrial Metals Index—which tracks the price of copper, nickel, aluminum and more—was up 21.4% year-to-date, just below the index of precious metals, up 21.9%. The broader S&P GSCI, which measures metals as well as agricultural and energy-related commodities, was underwater by nearly 10%. As I discussed last week,...

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The World Has Racked Up $277 Trillion in Debt

How do you even begin to visualize $277 trillion? If we convert it into seconds, 277 trillion is the equivalent of 8.8 million years. I’m not sure what was happening that long ago, but I guarantee you it didn’t involve people. It’s been estimated that Jeff Bezos increases his net worth by about $321 million a day. At that rate, you’d have to work for close to 863,000 days, or 2,364 years, to reach $277 trillion.  You get the point. It’s an unfathomable sum. It’s also the total amount of debt...

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Latin America Was Already Steeped in Economic Problems. Now Come the External & Internal Shocks of COVID-19

Not even Brazil and Mexico have the fiscal and monetary leeway to offset those shocks. By Nick Corbishley, for WOLF STREET: Covid-19 is beginning to gain a foothold in Latin America. Even in some of the region’s tropical areas, the case numbers are rising at a startling rate. Ecuador, which appears to have caught the bug a month ago as a result of its close connections with Spain, now has over 1,300 cases — more than any other country in the region except for Brazil, which has over 12...

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New Currency Crisis Dawns: Mexican Peso Plunges to Record Low Against the Dollar

The flight into US dollars! Dollar-denominated debts of Mexican companies weigh heavily. By Nick Corbishley, for WOLF STREET: As the coronavirus crisis roils the global economy, the strengthening dollar is causing all manner of stress and mayhem for national economies and their respective currencies. Nowhere is this clearer than in Mexico, whose currency, the peso, never really recovered from the last crisis and is now collapsing all over again. As of 4 p.m. Monday (Mexican time), it...

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