Investment/Trends

Indian gems, jewellery exports fall 41% in June on gold shortage

"India's gems and jewellery exports fell about 41 per cent year-on-year to $2.3 billion in June, 2013 on account of shortage of gold and limited inventory in domestic market. In June last year, these exports stood at $4 billion, according to the Gems and Jewellery Export Promotion Council (GJEPC). 'The exports declined drastically in June as there was a shortage of raw-material for jewellery manufacturing. This was because the government had taken steps to curb gold imports,' GJEPC chairman Vipul Shah said. The major markets for the country's jewellery exports are the US, Europe, Middle-East, Hong Kong and Japan." Continue reading →

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Swiss top the tables for household savings

"Switzerland tops a list compiled by Handelsblatt for money saved on average by average households. The Swiss put aside 17.5 percent of gross income into savings last year. This may not be entirely surprising given that incomes in the mountain country are three to four times as high as in most European countries. Switzerland’s unemployment rate of 2.9 percent in June compares with an average in the European Union of 12.1 percent in May, according to Eurostat. The report highlights a growing divide between wealthy northern countries and poorer countries in southern Europe. In Greece, the rate was negative 6.4 percent as citizens dug into existing reserves." Continue reading →

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10 things Social Security won’t tell you: The truth about the agency’s bottom line

"About a third of workers in their 50s expect Social Security benefits to be their primary source of income in retirement. The Social Security Administration itself has said that unless something is done to reform the system, it will have to reduce benefit payments to retirees within the next few decades. Less talked about, perhaps, is the concern that the program is having a hard time paying its bills today. In 2010, the Social Security Administration began collecting less revenue in taxes than it needs to cover benefit payments, forcing the agency to tap its $2.7 trillion trust fund sooner than some had expected." Continue reading →

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10 things baby boomers won’t tell you: The aging Me generation is still putting itself first

"Boomers are expected to live longer than any previous generation. At the same time, many haven’t saved nearly enough for retirement. More than 44% of early boomers (defined as those born between 1948 and 1954) and 43% of late boomers (born between 1955 and 1964) may not be able to afford basic living expenses in retirement. [..] Nearly one in six people ages 45 to 64 say that paying for their kid’s college tuition got in the way of saving for their own retirement. That’s not surprising, given that the typical middle-income family will spend more than $230,000 to raise a child from birth to age 18, up 23% (in today’s dollars) since 1960." Continue reading →

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Read more about the article ‘Pension Paupers’: Dream Time Collapses in Britain

‘Pension Paupers’: Dream Time Collapses in Britain

"Pensioners living on pocket money as savings crisis hits millions ... Almost two million retired adults in the UK have less disposable income than the average 11 year-old, as Britain's savings crisis creates a generation of 'pension paupers'. A new survey last night said 15 per cent of men and women in retirement have an income of less than £154 a week, which falls to £8 after essential living costs. Insurance giant LV= claimed the situation was only likely to get worse as over 50s cut the amount they put into their pension pots to cope with the cost of living." Continue reading →

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Housing’s Mini-Bubble Has Popped.

"Mortgage rates are up. Mortgage applications are down. New home permits are down. New home construction is down. Not a little down. 'Falling off the burning trestle' down. Bernanke did it. Let us not forget this after he retires next February. Bernanke did it. When the bad news on housing is on the evening news, recall once again: Bernanke did it. With QE3 pouring $40 billion of newly counterfeited money a month into Fannie/Freddie, and mortgage rates rising from 3.35% to 4.6% in two months, let us sing the chorus: Bernanke did it." Continue reading →

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Gold Is the Most Hated Investment You Might Want to Love

"Just as gold was about to peak at $1,923.70 per ounce in August 2011, speculative positioning in the gold futures market was at a record high, and the so-called smart money institutional investors held a record net long. With 20/20 hindsight, it’s obvious that wasn’t a good time to be going long gold. Measuring market sentiment, or the madness of crowds, can provide important clues at key turning points in securities prices. When sentiment moves from good to bad, to totally bleak, ignore the rampant pessimism and watch for incremental improvement. But one thing’s for sure: I don’t want to get caught up in the overcrowded short trade in precious metals right now." Continue reading →

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FATCA, fluctuating exchange rates, and the Expatriation Game

"It’s like the old British Fox Hunt. Instead of hunting foxes, the world is now hunting U.S. persons. Your objective is to NOT be captured. The consensus is that, over the long term, the U.S. dollar will depreciate relative to other currencies. This means that it will be worth less relative to other currencies. As the U.S. dollar depreciates, fewer Canadian dollars are required to purchase (what don’t we say $2,000,000) U.S. dollars. This means that the faster the U.S. dollar depreciates, the faster U.S. citizens abroad will become 'covered expatriates'. Notice that you are NOT doing anything yourself. It’s just that the the U.S. dollar is depreciating." Continue reading →

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