Will a Fed hike trigger a bond meltdown this fall?


A new report from Citigroup warns it does not matter how the U.S. Federal Reserve raises interest rates this year, it\’ll result in bond market panic. Bond yields always have a tendency to rise in response to rate hikes by central banks, but the bond market today is much different than during past rate hikes, Citi said. In particular, liquidity ...

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Goldcorp Inc investors should put away the rear-view mirror – TD


TD Securities analyst Greg Barnes thinks Goldcorp Inc. has the qualities investors should be looking for in a gold stock. Those qualities are free cash flow generation, debt reduction, growing production, and lower capex and operating costs. “Goldcorp has been, is, or soon will be, doing all of these things,” Barnes told clients, raising his recommendation on the stock to ...

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Economists are losing faith in the global economy


Get ready for another year of disappointing growth in the global economy. Citigroup had become the latest bank on Monday to downgrade its outlook, saying that it now expects the worldwide economy to develop by only two.6% this year, a 0.1% cut from its forecast last month. Weaker development in the United States, Mexico, India and Brazil counseled me blamed ...

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China stock market bubble debate turns to when, not if, stocks will crash


It\’s no longer an issue of whether China\’s stock-market rally is really a bubble, however when the bubble will burst. Want in on China\’s A-shares? The devil is incorporated in the details Investors, even in the best of times, have a habit of chasing after bright shiny objects and latching on just like a fish to some lure. But in ...

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Coal price settlement is above spot prices


Steelmaking coal prices happen to be plunging in the last year, forcing companies to chop production or shut mines permanently. With the market remaining stubbornly oversupplied, there is some concern on the market that contract prices within the third quarter could be really bad. So there was some relief this week when a key benchmark contract was settled at US$93 ...

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Market seasonality is mattering less and less


There is little debate that seasonality affects business activities in everything from construction to retail pricing. Investors also tend to view financial market risk and volatility as vulnerable to seasonal trends, with studies backing up this view in specific markets over certain amounts of time. But some caution should be taken when attemping to project traditional concepts of seasonality onto ...

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U.S. stocks heading higher, just not yet


Imagine you’re an area traveler just going back to earth. You arrive for an environment with limited inflation, an accommodative Federal Reserve, a steep yield curve, an uptrend in valuations, and positive earnings and economic data. Not a poor homecoming for an investor seeking to put a number of that hard-earned astronaut money to operate. Tony Dwyer, a U.S. equity ...

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Five things to look for when buying — yes, buying — a mutual fund


There are plenty of reasons that demonstrate how horrible mutual money is for investors: weak performance, high fees, closet indexing, take your pick. But mutual funds can serve a purpose and, yes, there are several good ones out there. Such funds can still be a good place to start investing, as minimums could be low and diversification can be instantly ...

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Why we’re not in a tech bubble


The ongoing debate about if the technology sector is within a bubble that poses big risks to investors stems in large part from what’s going on in the private market. Private companies with valuations in excess of US$1 billion C otherwise known as ‘unicorns’ C continue to grab headlines and also the attention of investors. RBC Capital Markets noted that ...

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Vanguard Group Inc. price cuts rattle the brokers who sell its funds


The Vanguard Group Inc., which in 4 decades became the biggest mutual fund company by selling low-priced, market-matching funds, is competing with some of its best customers – the brokers and advisers who funnel client assets to the fund C?by offering personalized plan to investors with more than US$500,000. Making things worse for outside advisers, Vanguard is charging 0.3 % ...

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