Strong as Steel: Impacts of New Futures

This morning I was interviewed for CCTV2 on the impact of new futures markets with a focus on iron ore. Although Iron ore is not in the major indices, the DJ-UBS and S&P GSCI, it is an economically significant commodity that is the main input for steel. I thought you might be interested in the Read more […]

View from Down Under

The world view in Sydney is quite different than in New York.  No one is worried or disgusted with the US government’s recent shutdown or debt ceiling follies – in fact only a few even comment about it. Likewise much of the anxiety American analysts suffer about the unemployment rate, weak GDP growth and “policy Read more […]

Lower Gas Bill? Why Not?

As mentioned in my last post, logistics and technology are the two key factors in propelling commodities from local markets to global markets. The U.S. is now expected to be the biggest producer of natural gas in 2013, so what does that mean for the residents? Will gas bills be cheaper? Will there be a Read more […]

US Energy Revolution’s Impact on Trade Flows

The substantial increase in the supply of energy from the United States is dramatically affecting US trade flows.  US crude oil production has increased about 29% and natural gas production has grown 33% since 2005.  To analyze the impact on trade flows, we must first examine what has happened to US energy consumption. Energy consumption Read more […]

Something you should know about dim sum bond market

I am sure you have probably heard of, or even tried the Cantonese delicacies dim sum. While many people have a good knowledge of Barbecue Pork Bun or Siu Mai Dumplings, not many can tell exactly what is in the dim sum bond market. Dim sum bonds are the debts that issued in the offshore Read more […]

Hope is a Good Thing

The unprecedented decline of the Indian Rupee has been the headline for the past few weeks. The chief drivers have been high current account deficits fuelled (literally) by oil- the sluggishness of the Indian economy driving out foreign investments, which had been impacted by the tapering of the quantitative easing program of the Federal Reserve Read more […]

Back to School Shopping: Pricey Clothes Are Not Just Name-Brand

If you are back to school shopping and notice clothing prices are higher this year, don’t just blame it on designer brands. Cotton has been on a roll as measured by the S&P GSCI Cotton, which is up 21.5% YTD through Aug. 19, 2013. The last time the S&P GSCI Cotton was up over 20% YTD through Read more […]

Malaise and Fears of Fed Tapering

The market’s malaise and its poor results on Thursday August 15th are being blamed on fears of Fed tapering.  Unless the Fed has a surprise change of heart, these fears will be with until tapering starts, so examining them is worthwhile.   Most signs suggest the economy will continue to gain strength.  Weekly initial unemployment claims Read more […]

The Dog Days of Summer

Markets and investors both seem to be thinking about August vacations and little else these days. As we enter the second full week of August – or the third week before Labor Day for the pessimists and workaholics – things seem to be going quiet.  The Dell buyout, just about the only contested M&A action, Read more […]

THE Golden Question?

What is your long term outlook for gold and where do you see prices moving in the months ahead? This is one of the questions I was recently asked in a Reuters CCTV2 interview.  While we are not in the business of forecasting, we are in the indexing business where we measure markets – and Read more […]