Analyst Articles

Stock market traders have seen a strong bull market push prices up by more than 20% since the start of the year. Grain markets have delivered even bigger gains, with soybeans up more than 45% and corn up about 33% in a little more than nine months. One of the worst droughts in history is behind the move in grain prices, but those markets appear to have topped and the news has turned more optimistic. As farmers started harvesting their crops, many seem to be… Read More

Stock market traders have seen a strong bull market push prices up by more than 20% since the start of the year. Grain markets have delivered even bigger gains, with soybeans up more than 45% and corn up about 33% in a little more than nine months. One of the worst droughts in history is behind the move in grain prices, but those markets appear to have topped and the news has turned more optimistic. As farmers started harvesting their crops, many seem to be surprised that the yield is better than expected. Reports also indicate that farmers are harvesting the crop quicker than usual, and that could lead to supply building up in the short term and driving prices lower. In addition to the fundamentals, there is a bearish technical picture building in corn. Commercials, the insiders of the futures markets, have been bearish while speculators have been buying while the price has formed a topping pattern. Read More

The sole purpose of the Federal’s Reserve’s recent moves and commentary is to inspire the economy‘s “animal spirits.” The most recent action, known as QE3, or the third round of quantitative easing, is simply an effort to provide a spark where none… Read More

In recent years, many Asian economies have been booming while European and North American ones struggle. But the tables may soon turn, according to data from the Asian Development Bank.  In its July 2012 Asian Development Outlook Supplement, the financial and policy institution forecasts 6.6% GDP growth in the region, down from 7.2% in 2011. The forecast also represents a downward revision from the ADB’s initial 2012 GDP growth estimates of 6.9% in July for the 44 Asian countries that belong to the bank. #-ad_banner-#The translation is that things seem to be… Read More

In recent years, many Asian economies have been booming while European and North American ones struggle. But the tables may soon turn, according to data from the Asian Development Bank.  In its July 2012 Asian Development Outlook Supplement, the financial and policy institution forecasts 6.6% GDP growth in the region, down from 7.2% in 2011. The forecast also represents a downward revision from the ADB’s initial 2012 GDP growth estimates of 6.9% in July for the 44 Asian countries that belong to the bank. #-ad_banner-#The translation is that things seem to be slowing down in Asia. But why? The answer is lower demand for Asia’s exports and unwinding policy stimulus programs in the region. In short, consumers have less money to spend in Asia. Many investors might take this as a cue to move toward stocks that rely on U.S. consumers for growth, but be careful: many All-American stocks actually rely on revenue from Asian consumers, though you wouldn’t really know it. Here are a few: 1. J.M. Smucker Company (NYSE: SJM) This classic American food brand is more than just jelly on your toast; Smucker also owns many food brands… Read More

In its third round of quantitative easing, the Federal Reserve will be buying at least $40 billion worth of mortgage-backed securities a month with no end in sight for those purchases. Their action decreases the risk of mortgage securities since we know… Read More