Investing

Funds, in terms of investing, are supplies of capital that belong to multiple investors. This capital collectively purchases securities. Each investor in a fund retains ownership and control of his or her own shares. Funds grant investors a broader selection...

What are Bonds and why are They Important? Bonds are one of the most important but misunderstood parts of the financial industry, partly because there are so many different types that serve different purposes. Bonds have received extra attention since...

Previously there was a good fit between the direction of German bund yields and the euro as this great graphic from Bloomberg illustrates.  However, recently the relationship appears to be loosening.  Consider that over the past week, the 10-year bund...

Stock markets have shown some interesting trends so far in 2015, and most of those trends have been bullish in nature.  However, some stock sectors have benefited more from this optimism than other sectors, and the overall developments might be...

The Pacific developing member countries (DMCs) of the Asian Development Bank are a heterogeneous group of economies with different levels of economic development and economic size. However, when it comes to choosing an optimal exchange rate, the Pacific DMCs face...

The US dollar has begun the new week on firm footing. It remains, though, largely in the ranges seen in the second half of last week. Sterling is the notable exception.  Last week's sharp downside momentum has continued, pushing the...

The Peoples’ Bank of China (PBoC) has maintained a close relationship between the renminbi (RMB) and the US dollar since the RMB was first pegged in 1994. Twenty years on, after the PBoC has made the RMB somewhat more flexible,...

Sterling has fallen out of favor.  It was the market's darling, rallying from $1.4565 in mid-April to $1.5815 in mid-May.  From a technical point of view, it was correcting the slide from last July's test on $1.7200.  The fundamental trigger...

The euro has shed six cents over the past seven sessions.  There are two main forces.  The primary one arguably is within Europe itself.  After an extended flash crash that saw German 10-year yields jump (from 5 bp on April...

There are two separate but related developments lifting the euro to its best level in three-months against the US dollar.   First, the US economy is off to a disappointing start to Q2 after it appears to have contracted by around...

Tajikistan's government is struggling to prop up its currency amid downward fiscal pressure emanating from Russia. Dushanbe’s policies appear to be creating a black market for currency traders with potentially long-term repercussions for the ailing economy. Tajikistan's government is struggling...

The price of gold is essentially unchanged from where it finished last year.  There have been several interesting developments.  Of particular note, China, India and Russia were significant buyers last month.  It appears that the UK exported gold to Switzerland,...

The financial media's look at yesterday's Treasury report on capital flows is myopic.  The key take away, they say, is that for the first time since the onset of the global financial crisis, Japanese investors hold more Treasuries than Chinese...

The attention of financial markets often gets fixated on an index of measure and not on the effectiveness, purpose or the objective of the measure. The dollar index, in its current form, practically from 1973, is a classic case on...

For global equity investors what worked so well last year is struggling to work this year.  Last year, the S&P 500 was the place to be.  It gained nearly 11.5%.  The Dow Jones Stoxx 600 was up 4.3%. The MSCI...