Tag: china

The Month End Rally

Posted by WFG – September 1, 2011

TSX – 12,768.70

Dow – 11,613.53

S&P – 1,218.89

Nasdaq – 2,579.46

The Month End Rally

  • A month end rally helped the market, pushing figures higher than expected. We predicted a 5% rise and it climbed to around 8%.
  • Defensive stocks traded higher. Though banks and industrials were hit hard.
  • Gold prices hit their highest rise, since 2009, in August. But announcements in the coming days may contribute to it slipping. These include the American job numbers. If they are good then many experts will choose stocks over gold.
  • Don’t trust the month end rally though, as the next week will bring difficulties. Most people are away on holiday and the summer ends this week.
  •  Odds are that the market will fall, though this will depend on a number of circumstances. Read the rest of this article

Positive News for Small Businesses in China

Posted by WFG – August 31, 2011

Top lenders are looking into a new model for growth as state-owned companies become more reliant for direct financing. Experts in this sector have highlighted the importance of the SME market, stating that it’s a crucial part of the economy.

For more on this story visit China Daily.

China’s Small Businesses Face Tough Times Ahead

Posted by WFG – August 18, 2011

Small companies in China are tightening their budgets, as they hit by worsening economic times. The Chinese Government is trying to slow inflation and do slowing down lending options and raising market charges.

Read more about this topic at Bloomberg Businessweek.

 

What’s Behind Recent Market Behaviours

Posted by Winflow – July 13, 2011

This quarter has been particularly volatile until markets made a recent sharp turn. In the last few days of the second quarter, according to the New York Times, the S&P index was only down 0.4 per cent.

Why has the market been so volatile?

There have been a number of dips in the market this quarter due to the following factors:

  • Deteriorating credit conditions in Europe.
  • Greece just narrowly avoiding default.
  • The Chinese economy has shown signs of cooling off.
  • Oil above $100 per barrel.
  • Unrest in the Middle East and North Africa.
    Read the rest of this article

China’s Uncertain Future

Posted by Winflow – July 13, 2011

Is China going to be the next largest economy in the world?

At this point it is difficult to tell. If they can increase their standard of living, based on population numbers, they should be able to grow to the largest economy. There are number of challenges that China must face in order to stimulate continued economic growth. These challenges include:

  • Changing demographics. A large aging population in China will soon reach retirement, which means China will have to pay out unprecedented healthcare and pension costs.
  • A labour force that is becoming more expensive. With an expensive labour force, outsourcing manufacturing and production duties to China is becoming less attractive. Neighbouring countries like Thailand have a more cost-efficient labour force and countries like Japan are more efficient and have a  reputation for higher-quality products.
  • With no rule of law, ample corruption and a lot of red tape to get through, making reforms to continue economic growth is extremely complex.
    Read the rest of this article

Diamonds are a Traders Best Friend

Posted by WFG – July 7, 2011

Market specialists are betting that diamonds will a top earner on the market in the next few months. This comes after the news that their prices rose five times faster than gold in 2011. Many believe that prices have leaped due to the high demand from India and China.

In the first six months diamond prices leaped 26% as rough gem production struggled to match the surging requests from jewelry buyers. In comparison, gold only rose 5.6% and reached a record 1,577.57 an ounce in May.

Companies such as Diamond Capital and Fusion Alternatives, look to profit from the surge in prices, as middle classes from China and India continue their interest. The Harry Winston Diamond Corp also revealed in May that it would plan a $250 million diamond fund for the institutional investors.

Despite a selection of companies making profits, there will still be a push for diamonds, as supplies will be expected to fail in meeting the demand. Just last year the industry advanced 17%, with gold also increasing by 30%. According to data, prices rose last week to the highest point since 2002.

China Against American Debt-Default Plan

Posted by Winflow – June 8, 2011

Republicans in the American government are backing a debt-default plan to reduce the country’s projected US$1.4 trillion deficit. Going ahead with the debt-default plan would mean potentially destabilizing the economy and worsening relations with foreign creditors like China. China, the largest foreign creditor, holds over US$1 trillion in Treasury debt. Some information regarding the debt-default plan includes:

  • Going into default could weaken the US dollar.
  • A debt-default would mean delaying interest payments for a few days.
  • The US Treasury Department believes there will be no more room to borrow by the beginning of this August.
  • The US Congress is against increasing government spending.
  • If the US were to default on their payments, it could create a global reaction.
  • If interest payments aren’t made the economy could be pushed back into a full-blown recession.
  • Republicans believe foreign creditors would be content with a default if it means a better chance of paying government debts off later on.
  • US Treasury debt is still one of the safest forms of liquid investments.

For the full story, read this article in the Financial Post.

To prepare your business for tough economic times or any other business need, contact the Winflow Financial Group. We can reached at 1.800.956.6897 or request a free consultation today.