Inside China’s Emergency Call to the Fed

With China’s violent stock market volatility characterizing the last year, the People’s Bank of China (PBOC) did something highly unusual and seemingly unthinkable—they emailed the U.S. Federal Reserve for advice. Last July, the PBOC’s chief, Song Xiangyan, requested the Fed share with China their playbook for Wall Street’s 1987 “Black Monday” crash. Xiangyan even asked […]

Weak Economic Data—Sign for Concern?

The week felt like “Friday the 13th” with headlines to match – weaker-than-expected global economic data, Brazilian President Dilma Rouseff’s looming impeachment trial and the retail sector’s fall in consumer spending. Read on to get inside details of this week’s key investor news… Around the World in Economic Data – lots of data was released […]

Time to Sell Bonds and Buy Dividend Stocks?

Following the 2008 global financial crisis, central banks around the world implemented aggressive monetary policies in an attempt to reignite the global economy. Europe and Japan are still running QE (quantitative easing) programs and even China entered the game with several interest rate cuts. The U.S. has ended QE, but interest rates are still near […]

Inside Peabody Energy’s Bankruptcy

Peabody Energy, a coal juggernaut and one of the world’s largest private-sector coal players with a legacy of 133 years, is now bankrupt. To the shock of many, the once iconic coal company filed for Chapter 11 bankruptcy in St. Louis late this spring. The Question on Everyone’s Mind is, “What happened?” A couple of […]

Bank Stocks Sailing into New Headwinds

Recently, five major banks, including Bank of America (ticker: BAC) and JPMorgan Chase (ticker: JPM), failed to meet the recently rolled-out “living will” standards—a regulatory provision designed to prevent a company financial crisis from mushrooming into an economy-wide meltdown. The new rules are part of the Dodd-Frank Act financial regulatory framework, the full features of […]

Should You Sell in May and Go Away?

  New York, New York asks… Mitch, there’s an old investing adage “Sell in May and Go Away,” that’s based on notoriously weak summer returns. I think about doing this every year—does it make sense?   The “Sell in May” adage makes its way into the equities market narrative every year, so I’m not surprised […]

Corporate America vs. the IRS

Recent news of the Pfizer-Allergan deal collapsing has brought a long-contentious issue back into the spotlight: corporate tax inversions. Corporate inversion (commonly called tax inversion) refers to a company shifting its legal domicile to a lower-tax nation, while maintaining operations in its original country—all in an effort to dodge higher corporate tax rates. The practice […]