Markets were taken by surprise today as the Swedish central bank announced it would lower their repurchase rate an additional 15 basis points from negative 0.35 percent to negative 0.5 percent. This is the first rate decrease for Sweden’s Riksbank since it introduced negative rates in early 2015. Despite a strong economy with good growth, the central bank cited deflation, partially the result of declining oil prices, as a potential source of concern. Read more about The World Has an Interest Rate Problem 02-11-16
With a murky stock market and global threats abounding, it’s safe to say that we live in a scary world. Unfortunately for many market participants in 2016, performance hasn’t been enough to distract from this phase, but some that should perhaps feel more at ease after today’s price movements. Those that have followed the Real World Investing portfolio for a while now will have woken up to a pleasant surprise. Military supplier CACI International (CACI) has ascended in price significantly today off the back of impressive earnings. Read more about Cocky about CACI 02-04-16
Be on the lookout for the upcoming issue of Leeb’s Real World Investing, due to be published tomorrow. In this issue, we discuss how a 2,500 year old Chinese classic relates to today’s China. We spotlight China’s imports of key commodities and what they say about the country’s plans.
Read more about Previewing the January Issue 01-28-16
An old saying assures us that it’s always darkest just before the dawn, however, affirmations of the ancients might prove a little less than useful at any particular moment. At present, for example, we can tell with no certainty just how far through the night we are. The oil calamity has lurched full force into 2016, causing volatility throughout global markets, leaving us with only a murky outlook or timeline as to when it will end or what might cause it to end. Read more about Why Investors Should Own Gold 01-21-16
Oil prices continues to test the $30 level. West Texas Intermediate and Brent, the respective domestic and international oil benchmarks, this week briefly dipped below $30 for the first time in more than a decade, but so far they have rebounded and held the line. We maintain that right now oil is fundamentally mispriced. However, given the very negative sentiment surrounding it, we cannot rule out the possibility that crude oil could spend some time floundering in the $20s as predicted by some analysts. Read more about Holding the Line 01-14-16