One month into the year, and the dominant theme of 2015 is shaping up to be the race to debase. The global currency wars that escalated last fall intensified greatly in January. The European Central Bank kicked things off by making their widely anticipated quantitative easing program official, firing up their printing presses until at least September 2016 to the tune of 60 billion euros per month to buy mostly government bonds. The euro-area's official QE announcement opened the flood gates to competitive currency devaluations. Since the year began there have been at least five other major central banks that have voted for policies that weaken their currencies.
The upshot of the trend toward competitive devaluations is that currencies that were once far out of alignment with any reasonable estimate of fair value are now coming back down to earth. The Nordic currencies have corrected meaningfully versus the USD. Norwegian shares have appeal here. Our new recommendation is one of the best companies in Norway, offering a generous yield, a secular growth tailwind, and long-term currency upside. This company is a leader in both the stable, developed Nordics and in some of the world's most appealing emerging markets. More >>
From the cheap seats, 2014 looked like another strong year for investors, but when you get up close, the picture that emerges is much less encouraging. Outside of U.S. stocks, markets and economies were weak. This leads some to question the need for global diversification. Why should you stick with a global approach in the face of lagging performance? Markets are cyclical, and with domestic stock valuations in the clouds, global diversification remains the proper approach to portfolio construction, and one we advise for you.
Aside from foreign stocks, energy stocks were out of favor in 2014, and represent great value today, both in the stocks we recommend and in two new fixed income recommendations in the issue. I also have a new short position for you to capitalize on a trend from 2014 that could reverse sharply with any improvement in the global economy. Finally, we are taking profits on a few of our holdings, including a bond fund that outpaced the U.S. market in 2014. More >>
March 05, 2015 NASDAQ crossed 5,000 for the first time in 15 years. That's a long-time to wait, especially if you're not getting paid. Back in 2000, when it peaked, NASDAQ yielded one-tenth of the S&P 500 or 0.12%. Imagine investing for 15-years and getting paid. I'll use a 4% yield as an example, which was hard to […] More »
The Young Research Commodities chart book includes price, both real and nominal, for different time periods and annual rates of change for the commodities covered on the Global Investment Scorecard.
The Young Research Equities chart book includes a range of charts featuring indicators on stock market valuation, sentiment, relative strength, etc. for U.S. stocks over a variety of timescales.
The Young Research U.S. Economy chart book includes short and long-term charts on output and activity, the labor market, inflation, and consumer and business sentiment.
Since 1896, the average bull market has lasted 835 days and resulted in a doubling of stock prices. For more historical perspective on the duration and magnitude of bull and bear markets, check out our new Dow Bull and Bear Markets table.
Our Credit Markets chart book includes many of the charts we monitor and use regularly to formulate fixed-income investment strategy. The chart book includes long-term charts on nominal and inflation-adjusted treasury rates, policy rates, interest rate valuation indicators, and credit spreads.
Jeremy Jones, CFA, is the director of research for Young Research & Publishing and editor of the Global Investment Strategy newsletter. Jeremy is also the Chief Investment Officer at Richard C. Young & Co., Ltd., an investment advisor to high net-worth families and businesses. More »