WARNING: Hot Coffee May Burn

There are too many funny coffee jokes to single one out but this one I found seriously relevant: Though I take my coffee black, I also take it seriously since it is one of the commodities in the S&P GSCI and DJ-UBS. Coffee has been the best performing commodity this year, up 23.9%.  As I Read more […]

Ties with Exchanges Create Win-Win

Recently I had the pleasure to visit some of our key exchange partners in Asia and kick-start some milestone initiatives there. Our strategic agreements with the Korea Stock Exchange (KRX) and the Taiwan Stock Exchange (TWSE) further strengthen our presence in this fast-growing region and boost our profile as a leading international financial market index Read more […]

The U.S. Congress and Investors Await Janet Yellen Comments

The S&P/BGCantor U.S. Treasury Bond Index finished last week slightly down -0.02% after the market traded up at the end of the week in reaction to the Nonfarm Payroll number. This January indicator of employees on business payrolls (113k) disappointed expectation of 180k giving bond prices an upward push after three days of declines. Treasuries Read more […]

Emerging Markets: Don’t Panic!

Currencies and equities across various countries classified as “emerging” have come under increased scrutiny in the past few weeks, with more excitable commentators seeing signs of a crisis. Should broad-based index followers be worried? Perhaps not. On the one hand, the tapering of U.S. quantitative easing has triggered flights of “hot money” from countries (like Turkey) that Read more […]

Re-Read Friday’s Employment Report

Last Friday’s employment report for January was greeted with groans and sighs.  The weak payrolls number in December was revised upward by only a thousand jobs and the January figure, at 113,000, was a big disappointment.  While the unemployment rate did drop to 6.6% from 6.7%, the change was as small as could be reported Read more […]

Chinese New Year: Element of Wood

In honor of the Chinese New Year, 2014 – Green Wood Horse (馬 午), CCTV interviewed me on lumber.  As for other commodities, The Year of The Horse should be prosperous for lumber, especially for China’s sawmill industry, enabling them to support their construction boom by importing whole logs and sawing them into lumber at a Read more […]

Inside the S&P 500: PE and Earnings Per Share

Two carefully watched numbers are the earnings per share (EPS) and the price-earnings ratio (PE) on the S&P 500.  Their popularity stems from the wide spread use of the index and its long data history.  EPS is the market analysts’ gauge corporate profits in the US while the PE is their measure of value.  While Read more […]

Inflating Fears of Inflation

With all of the monetary policy including the unprecedented quantitative easing, the impacts have been different than expected. Assets became hyper correlated, the dollar didn’t drop relative to other currencies and inflation never showed up. Recently, I had the privilege to sit down with Bluford Putnam, Managing Director and Chief Economist, of our partner, CME Group, to discuss Read more […]

Europe’s Short Rate Remains Unchanged

The European Central Bank left its key rate unchanged at a record low of 0.25%. There was speculation around whether the European Central Bank would cut rates again in response to the low level of inflation (0.7% in January). The central bank’s president, Mario Draghi, addressed the low inflation issue by saying that the measure Read more […]

Olympic Metals: Going For The GOLD?!

In honor of the upcoming 2014 Winter Olympics in Sochi, I thought it would be a good time to discuss gold, silver and bronze that are the metals in the Olympic medals. Since copper is the main metal in the bronze alloy, we’ll use copper as the index metal. Let’s start with gold.  Recently, I Read more […]