Economists have studied the stock market extensively, but that does not necessarily make them good stock pickers.
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Economic View: For Stock-Picking Advice, Don’t Ask an Economist
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Strategies: Japan Starts to Recharge After Two Lost Economic Decades
It’s hard to tell if Japan’s new experiments in economic policy will work in the long run, but they have already caused world markets to take notice.
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Fair Game: At PennyMac, Dueling Jobs and Big Paydays
Shareholders of PennyMac, a real estate investment trust, have profited since it went public, but not as much as its C.E.O., who also leads the financial services company that manages it.
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Economix Blog: Bernanke Says Better Days Lie Ahead
In an address to graduates at Bard College at Simon’s Rock, the Fed chairman says nothing about his day job, but he sketches a world in which competition to produce innovations yields ever-greater rewards.
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Economix Blog: Bernanke Says Better Days Lie Ahead
In an address to graduates at Bard College at Simon’s Rock, the Fed chairman says nothing about his day job, but he sketches a world in which competition to produce innovations yields ever-greater rewards.
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Protests in Italy Against New Coalition; How Long Will Coalition Last?
The new coalition government in Italy is off to such a rocky start, it’s hard to say there ever was a honeymoon.
People want more jobs. Instead, the price for a coalition by former Prime Minister Mario Silvio Berlusconi was a rollback in property taxes.
Here is the result: Thousands rally in Rome against cuts.
Thousands of protesters, led by trade unionists, have rallied in the Italian capital Rome against the policies of the new coalition government. Wielding red flags and placards, they urged the centre-left Prime Minister, Enrico Letta, to scrap austerity measures and focus on job creation.
Public trust in his fragile coalition with the centre-right is dropping, opinion polls suggest. The country is experiencing its longest recession in more than 40 years. National debt is now about 127% of annual economic output, second only to Greece in the eurozone.
National debt is now about 127% of annual economic output, second only to Greece in the eurozone. Unemployment is at a record high of 11.5% – 38% for the under-25s.
Before taking office, Mr Letta vowed to make job creation his priority, but critics are unhappy that he has focused on property tax reform.
Soon after being appointed, Mr Letta met other eurozone leaders to convey growing public unrest over austerity measures in Italy. But the new prime minister has to maintain a delicate balance between the policies of his own supporters and those of the centre-right, led by Mr Berlusconi.
Protest Pictures From Reuters, BBC
How Long Will Coalition Last?
Inquiring minds are wondering how long this rocky coalition can last. There is no definitive answer but there are a some general rules.
- Long enough for Berlusconi to get the tax changes and prosecution immunity he seeks
- Not much longer than support for the coalition starts to cost Berlusconi votes
- Not much longer than Berlusconi is pretty sure he can win the next election outright
1. Berlusconi got a suspension of property taxes but not the complete rollback he was seeking. Prime Minister Enrico Letta has not said how he will pay for property tax reform so expect some heat from Brussels.
If Berlusconi does not get a complete property tax rollback, the coalition will likely end right then and there. If he does get the rollback, he will have gotten one of the things he wanted.
2. Support for coalition may be costing Berlusconi votes right now.
3. Support for Beppe Grillo waned after the election so Berlusconi could be closing in on the number now.
In all respects, it appears the coalition will splinter sooner rather than later.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.
Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.
Adrian Cheng: updating a Hong Kong family empire for a changing China
HONG KONG: He has trained on Broadway and been a Wall Street banker. Now, Adrian Cheng, 33-year-old scion of the world’s largest jewellery retailer and one of Asia’s leading property developers is gearing up for his latest challenge – modernizing his family’s $25 billion empire for what he calls a “new era”.
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Wall Street Week Ahead: Correction talk gets old as rally sails along
NEW YORK: With the broad S&P 500 Index gliding once again into uncharted territory and posting four straight weeks of gains, the talk of Wall Street’s rally inevitably hitting a ceiling is starting to get old.
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China April housing inflation quickens to two year high
BEIJING: China’s housing inflation accelerated to its fastest pace in April in two years, driven by a jump in prices in Beijing and Shanghai, complicating the task of policymakers trying to cool the property sector while supporting economic expansion.
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EU cites Chinese telecoms Huawei and ZTE for trade violations
NEW YORK: Europe’s top trade official for the first time late on Friday officially cited Chinese mobile telecommunications equipment makers Huawei and ZTE Corp for violating anti-dumping and anti-subsidy guidelines.
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