I figured out my problem. This is not to say I only have one, as I have at least two, but I have considered one recently, and I figured that one out – the market’s skittish nature bothers me. I wish it did not react so mightily to the daily rush of bad news. If the market would only look just a bit past its nose, but if it cannot, you should …
- Beijing has followed a program of “fine-tuning” since the autumn of 2011, cutting interest rates, easing rules on bank lending, fast-tracking fiscal spending and cutting taxes and red tape for business. The policy response has left the world’s second-biggest economy on course for a soft landing, according to a new report from the International Monetary Fund.
- The supply of foreclosed properties for sale has been dropping steadily, as lenders try to modify more loans or actively pursue foreclosure alternatives, like short sales (where the home is sold for less than the value of the mortgage).
- Caterpillar, the world’s largest maker of construction machines posted a 67% jump in quarterly profit and raised its forecast for 2012 earnings. “Despite pockets of weakness, the global economy is improving. Fiscal improvement is still needed in Asia, Latin America and North America, but steps toward a healthier global economy have already begun,” Caterpillar Chief Executive Officer Doug Oberhelman said.
Sometimes, I wish I were a better writer, one who would take the time to avoid cliches. The fact is that cliches work (which is why they are cliche) so here is one – the sky is not falling, at least not according to the CEO of Caterpillar, and it is hard to imagine someone with a better finger on the pulse of the global economy …
I buy and sell non-ferrous and ferrous materials. June prices dropped so much it stopped my purchasing of these materials. Freight costs have doubled. What does the future look like?
The above question is fascinating. The person is not a stock trader, but a trader of physical materials, or so her question reads. Nevertheless, her question is the same for both – what will metals do?
One should look to the words of Caterpillar’s CEO and Union Pacific’s CEO for guidance here. Both suggest, as their company’s earnings do, construction is advancing both in the US and on a global scale. Metals, ferrous or non-ferrous, will be gobbled up as the global economy cycles up again because every upturn now will be bigger and stronger than the last. Nothing will stop the inexorable demand forming from the rise of the middle class around the world. BTW, the US transformation I wrote about last week is a global transformation. Big stuff.
Trade in the day; Invest in your life …