Category: INO.com Contributors

Copper Points At Weaker Economy?

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Reddish Metal Disagrees With GDP Readings

World GDP abd Copper Price Growth Dynamics
Chart: Aibek Burabayev; Data: World Bank, CME group

Copper is a core element of our everyday life and it will only grow to be even more important in our digital life as we strive for comfort. The diagram above shows it without saying a word.

The 10-year dynamics of the GDP and Copper growth had the same trajectory, at least until 2014 when the ratios diverged. In 2005-2007 the metal had fallen ahead of the GDP with a steeper curve in 2007 and then both indicators met in the collapse of 2008-2009. And then, amazingly, the ratios proceeded to keep together on the graph showing ideal matching from the bottom to the top in 2010. Continue reading "Copper Points At Weaker Economy?" →

This High-Yield Stock Will Ensure Steady Profits In Your Portfolio

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


There's a good reason that investors love high yielding dividend stocks. Not only does a dividend help buffer against downside risk, it also provides a steady base of returns over time that compounded, can add up to higher growth than you might expect.

Usually investors think of dividend paying stocks as large behemoths that simply don't have the ability to grow like it's smaller, younger competitors. It's a myth that's led many investors away from solid opportunities. These large entities might grow at a slower rate than you want, but when you factor in the dividends and the small downside risk these companies tend to have, you could find an investment that matches any high-risk small cap growth stock without having to expose yourself to unnecessary risk.

For a good example, all we need to do is look at Johnson & Johnson's (JNJ) stock.

NYSE:JNJ
Chart courtesy of StockCharts.com

If you bought 100 shares 10 years ago and reinvested all dividends, your holdings would have grown nearly 140%. And if you take a look at it's performance over that time, you'll see it's a very low-risk stock that was easily able to weather the 2008 financial crisis essentially making it a growth stock without the high growth risk. Continue reading "This High-Yield Stock Will Ensure Steady Profits In Your Portfolio" →

A Consumer Goods Stock That Feeds Any Investors Appetite

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


A missed quarter is often an opportunity for value investors who know how look to the future rather than the short term. A temporary stock hit can mean getting a discount on a company that could turn around and post out-sized profits down the road.

For a food production company, weakness can come from a number of sources such as higher livestock costs, grain costs or import costs. However, one fairly steady constant is the demand for food itself. Rather than being subject to supply and demand curves or the whims of the business economic cycle, a food producer will always have a solid customer base that's always growing as the global population rises. Regardless of the state of the economy, food will always be in demand making it a solid investment choice over the long run. Continue reading "A Consumer Goods Stock That Feeds Any Investors Appetite" →

Market Extremes: Gold Is Going To Take On Stocks And More In Europe

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


This time I want to share with you the technicals of the Gold/Stock index ratios for the United States and Europe.

Chart 1. Gold In Usd/S&P 500 Index Ratio: Landed or Not?

XAUUSDO/CME_SP500
Chart courtesy of TradingView.com

As both Gold and stocks are hitting new multi-year extremes, I wanted to compare them in the form of a ratio to better understand where we are now on the chart.

This year the S&P 500 index pushed Gold down to a decade low just like the US dollar did. The chart looks similar to the Gold/$ chart, but the index has surpassed the currency. The Gold/S&P500 ratio corrected for a huge 78.6% setback while the Gold/$ ratio only corrected for a 50% setback, which means that stocks outperformed the cash. Continue reading "Market Extremes: Gold Is Going To Take On Stocks And More In Europe" →

China Devalues The Yuan: Now What?

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


It was less than a week ago that we pinned down the growing possibility that China would move to devalue the Yuan. Then – Bang! Since this morning, it's a done deal. Or is it? While China's move to devalue the Yuan (by roughly 1.9%) in a single day is the most aggressive Yuan devaluation since the "roaring" nineties, chances are this is only the beginning.

China Must Regain its Competitiveness

The core of the matter here is that China is trying to maintain the facade that this was a one-shot deal. However, it really has more to do with the government's attempt to free the Yuan rate. Beijing, it seems, may have finally bowed to the realities of market economics. Even as it enacts reforms to liberalize its financial markets and change its economic model, China must regain its competitiveness when it comes to exports. Continue reading "China Devalues The Yuan: Now What?" →