Eye on the Globe
Posted on Wednesday, August 13, 2014
In the July issue of Investor Advisory Service, the editors note that international instability has become a theme this year, giving investors reason to worry about ripple effects in the markets. Though the usual warnings of a "bubble" collapse continue, the S&P 500 showed stubborn resilience through the first half of the year and well into the summer. The 10-year and 30-year U.S. Treasury yields have held steady in the short term and gold prices remained unchanged, for a change.
Economic data suggests a continuation of last year’s low-growth trends, with a potential rise in inflation threatening in the background. Despite signs of an uptick in some sectors of the job market, the unemployment rate remains essentially unchanged, and wage growth is still lagging.
The housing market is starting to sag a bit, with new home construction down 6.5% in May. Interest rates are higher than they were a year ago, but bonds still aren’t attracting much interest from retail investors. Where do the opportunities lie? For deeper insight into where risks might be worth the reward, become a subscriber to Investor Advisory Service and read the editors' full "Investment Comments" column each month.