The Positive Impact of Falling Oil Prices

The Positive Impact of Falling Oil Prices

Crude oil prices have dropped sharply over the last few months thanks to abundant global production and signs of slowing global economic growth. Lower oil prices could inject spending power into the economy as consumers eventually pay less for gasoline and open their wallets in other areas. This would provide a positive shock and potentially bolster the performance of consumer discretionary shares.

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MLPs Front and Center as US Undergoes Energy Renaissance

MLPs Front and Center as US Undergoes Energy Renaissance

Technological advances have led to a surge of energy production in the US, which by many accounts could become energy independent in the not-too-distant future. Naturally, investors have been focused on the companies that find and produce oil and natural gas. But once that energy is removed from the ground, there’s a vast infrastructure network that’s required to transport, process and store these commodities.

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Japan: Small Change Clouds Big Picture

Japan: Small Change Clouds Big Picture

We continue to believe that achieving real economic growth in Japan requires changes that are hard to come by. On a recent trip to Japan, it became clear to me that this next stage of Abenomics — shorthand for Prime Minister Shinzo Abe’s “three-arrow” economic revitalization program of monetary easing, targeted financial support and structural reforms — calls for corporate governance reform to take the spotlight as a core part of the important third arrow, particularly as regulatory reforms have made slow progress thus far.

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We’re Still on the Front Nine of This Economic Cycle

We’re Still on the Front Nine of This Economic Cycle

Officially, the US recession ended in June 2009, making the current economic recovery cycle five years old. If past recoveries tended to last 20 quarters on average, then we appear to be in a late-cycle economy and the stock market seems overdue for a sharp and/or prolonged downturn. But I disagree. I’m skeptical about such claims because they overlook some important considerations.

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Assessing the Economic Impact of Hong Kong’s Occupy Central Movement

Assessing the Economic Impact of Hong Kong’s Occupy Central Movement

The Occupy Central (OC) movement was officially launched on Sept. 28, starting with members from the Occupy Central with Love and Peace (OCLP), the HK Federation of Students and Scholarism groups staging a sit-in in Central and Admiralty that blocked traffic in key commercial and business districts in Hong Kong. The objective of this campaign is to display the organizers’ determination to have “real” universal suffrage for the chief executive (CE) election in 2017, and more importantly, to demonstrate their discontent over the National People’s Congress’ decision to require that CE candidates be screened by a nomination committee, which is expected to be composed of pro-China members, and therefore lacking broad-based representation.

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Which Factor has Outperformed in Dollar Bull Markets?

Which Factor has Outperformed in Dollar Bull Markets?

Although predicting major foreign exchange (FX) trends is never easy, the potential for a major dollar bull market suggests FX could influence investment planning in the coming months. In this light, we examined how various equity risk factors have performed in a strong dollar environment, and found that the momentum factor historically outperformed.

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