Practical analysis for investment professionals
27 July 2013

Turning Points: Currencies, Commodities, and Credit Markets

Posted In: Weekend Reads

The Fed’s discussion of tapering has sent global currency markets into a tizzy. Now, central banks around the world have shifted from currency wars and cheapening their currencies to strengthening their currencies, tightening rates, and increasing capital controls. There’s only one problem: Can the US achieve escape velocity? With mortgage rates backing up, mortgage applications appear to be quite sensitive to increases in rates. Can the US housing market get over the hump of rising rates? Of course, credit quality is slowly deteriorating with subprime starting to increase in housing, auto loans, and in effect, student loans. And, China is showing increased signs of slowing, which is of course affecting the structure of commodity markets. The ripple effects run far and wide.

Here’s a wrap-up of key issues affecting global markets for fundamental investors.

Currencies

Commodities


China’s Direction

Credit Markets

Derivatives

Energy

Euro Crisis

Hedge Fund Money

Interest Rates and Central Banks

Japanese Debt and Inflation

Stock Market

US Real Estate Bubble 2.0?

Time Capsule

  • What follows in this link is a nice summary of books about the financial crisis in 2008. The recommended books are lumped by the author into three categories: journalistic blow-by-blow accounts, analytical assessments that sacrifice colorful details for broader assessments, and lastly screeds with half-baked conspiracy theories. (New York Times)

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

Photo credit: ©iStockphoto.com/milehightraveler

About the Author(s)
Ron Rimkus, CFA

Ron Rimkus, CFA, was Director of Economics & Alternative Assets at CFA Institute, where he wrote about economics, monetary policy, currencies, global macro, behavioral finance, fixed income and alternative investments, such as gold and bitcoin (among other things). Previously, he served as SVP and Director of Large-cap Equity Products for BB&T Asset Management, where he led a team of research analysts, 300 regional portfolio managers, client service specialists, and marketing staff. He also served as a Senior Vice President and Lead Portfolio Manager of large-cap equity products at Mesirow Financial. Rimkus earned a BA degree in economics from Brown University and his MBA from the Anderson School of Management at UCLA. Topical Expertise: Alternative Investments · Economics

Leave a Reply

Your email address will not be published. Required fields are marked *



By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close