Weekly Market Commentary, July 28, 2015

July 28, 2015  | By Robare & Jones

  The Markets There was a spate of bad news last week, and it drove U.S. markets lower. China’s wild ride isn’t over yet. The Purchasing Managers’ Index, a private measure of Chinese manufacturing, came in below expectations at 48.2, according to BloombergBusiness. Results below 50 indicate the sector is contracting. That doesn’t bode well for growth in China, which is the biggest global consumer of metals, grains, and energy, or the rest of the world. Things weren’t rosy in … Read More

Weekly Market Commentary, July 21, 2015

July 21, 2015  | By Robare & Jones

The Markets Investors around the world breathed a sigh of relief last week. The NASDAQ jumped by more than 4 percent. The Standard & Poor’s 500 Index gained 2.4 percent. France’s national benchmark index rose 4.5 percent, Germany’s was up 3.2 percent, Italy’s increased by 3.6 percent, and China’s Shanghai Composite was up 2.1 percent. So, what happened? Global markets stabilized. First, the Chinese stock market staunched its wounds and recovered some value, which eased investors’ worries. According to Barron’s, … Read More

Weekly Market Commentary, July 14, 2015

July 14, 2015  | By Robare & Jones

The Markets It’s a cautionary tale… Many Chinese investors were so optimistic about the prospects for Chinese stock markets they bought on margin, meaning they borrowed money to buy stocks. Borrowing to invest has been so popular that the amount of margin loans doubled in just six months to about $320 billion, according to Barron’s. Experts cited in the article said, “…margin financing in China is equal in size to Indonesia’s entire stock market valuation and as high a portion … Read More

Weekly Market Commentary, July 7, 2015

July 7, 2015  | By Robare & Jones

The Markets It’s been a wild, wild quarter. In early April, stock markets were doing so well (14 of 47 national benchmark indices hit all-time highs) that global market capitalization — the value of stocks trading on exchanges throughout the world — pushed past $70 trillion, according to Bloomberg Business. The publication attributed the climb to stimulus programs. About two-dozen countries’ central banks were either engaged in quantitative easing or had committed to lower interest rates. Rate Hike Speculation Since … Read More