Archive | July, 2016

Looking for Positive Yields? Head to the US

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In the world of of ZIRP/NIRP it is becoming more and more difficult for investors to find positive yielding government debt.  The world is quickly approaching a situation where one of out every two government bonds has a negative yield. As of 7/7/16, only 57% of developed world government debt has a positive yield. And the vast majority […]

USD Is Overvalued Against the Pound, Yen and Euro

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According to our Currency Purchasing Power Parity Diffusion Index, the dollar is overvalued against nine major country currencies while it is undervalued against nine other major country currencies. So our diffusion index shows a relatively mundane reading of zero. However, three of the countries that the dollar is overvalued against are pretty significant: the pound, yen and […]

1H16 Equity Performance Summary

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On a median basis, the emerging market has performed much better than the developed market in the first six months of 2016. Here are some highlights: The median EM equity in Latin/South America was up over 17% compared to the median stock in DM EMEA which was down over 5%. The median stock in Peru, Brazil and […]