Arbitrage Opportunities Abound

Arbitrage Opportunities Abound

Article SummaryIncreased volatility in the global marketplace has created some interesting arbitrage opportunities.Two mergers present an opportunity for investors looking to speculate on mispriced equity valuations.Pair trades using ETFs that follow China and gold are highly correlated and could be a way to diversify against speculating on market direction.Financial markets around the world have been roiling over the past few weeks. The Greek debt crisis, Chinese stock market crash, and plunging oil prices have triggered a wave of selling and have reintroduced volatility back into the markets. Read full article at Seeking...
Is Space The Next Big Investment Venture?

Is Space The Next Big Investment Venture?

• Private investment into the space industry is expected to reach $10 billion this year with around 800 companies currently involved with space operations in some form.• SpaceX’s reusable rocket technology could lower the cost of launches from $70 million to under $10 million.• The natural resources that can be found in asteroids could prompt a space mining boom within the decade or so.Beyond the standard business cycle of expansionary and recessionary phases where certain stock sectors outperform or underperform more than others, a larger cycle exists. It’s a much longer cycle that can take time to develop but once it gains enough momentum, could last for decades.In the 19th century, railroads were the booming industry. Beginning in the mid-1800’s, the advancement of transportation led to a nation interconnected for the first time in a way that fundamentally changed how businesses operated.As the economy expanded and technology forged onward, it gave way to the oil boom which lasted well into the 20th century. Some of the companies founded back then are still around today. Names like Exxon Mobil, ConocoPhillips, and Chevron all stemmed from the early days of the oil rush. The growing production demand from factory output and economic growth led to the creation of the wealthiest man in U.S. history – the oil baron John D. Rockefeller. In today’s dollars, he would have been worth more than $330 billion.The advent of the computer gave birth to a new era – the digital age. The computer transformed businesses overnight and allowed transactions to take place instantly even over long distances. Companies like Apple, Intel and Microsoft were founded...
Emerging Economies In Growth Mode

Emerging Economies In Growth Mode

Article SummaryA global sell-off will hit economies whose markets are considered overvalued and could spill over into neighboring economies as well.India has surpassed China as the fastest growing large economy in the world and should continue its upward momentum despite the current global crisis.Vietnam’s economy may be about to break out from its tiger status to an emerging one with strong growth and a lack of correlation to major global economies.As domestic markets become filled with turmoil, investors may start to feel disillusioned about equities. While the first two months of 2015 started off well enough, the broader indexes tapered off and began to tread water until late June. Now volatility has leaped up and threatening to cross the 20 threshold amidst mixed economic data, the Greek debt crisis, and a Chinese stock market selloff that has dragged the S&P 500 down 3.43% since June 23rd… Read full article at Seeking...
Where Did All The Volatility Go?

Where Did All The Volatility Go?

Article SummaryVolatility has hovered near historical lows for the past several months, which could be a sign that risk is not being accurately reflected in the stock market.Margin levels are near all-time highs, which historically indicates a market correction could be imminent.A healthy amount of volatility is needed for stocks to go higher from here.There’s something interesting happening in the financial markets right now. And the way the markets reacted to the Greek debt crisis on Monday could be a precursor to a far bigger problem. There’s been irrational behavior displayed by traders and investors for the last several months – it’s not quite the kind of “irrational exuberance” once coined by Alan Greenspan, but there are some disturbing correlations that are being displayed in the markets starting with a peculiar lack of volatility… Read full article at Seeking...
What the Sudden Wave of IPOs Mean for the Stock Market

What the Sudden Wave of IPOs Mean for the Stock Market

Article SummaryJune is on track to register the highest number of initial public offerings in 15 years.The mix of low volatility and sudden IPO activity could be a dangerous mixture as investors look for growth opportunities in a stagnant stock market.There is a correlation between heavy IPO activity and stock market corrections.Investors haven’t had a whole lot to cheer about in recent months. The constant threat of a Greek default, wild swings in the price of oil, and uncertainty about the upcoming Fed Funds rate hike has infiltrated investor sentiment. The markets have basically traded sideways since late February waiting for either good news or bad news to finally tip the scales to send them higher or lower… Read full article at Seeking...