Investors Are Piling Into Safe Havens on Coronavirus Fears
Gold mining stocks have broken out, with several hitting new 52-week highs this week. Gold royalty and streaming companies, including Franco-Nevada and Wheaton Precious Metals, also hit fresh 52-week highs.
Changes to the Market Forecast
The Lazard Multi-Asset team details their views over the next six to 12 months. While the United States-China Phase 1 trade agreement and the United Kingdom’s exit from the European Union have reduced near-term uncertainty and improved sentiment, the coronavirus outbreak in China could have a noticeable negative effect on global economic activity.
Why We're Pivoting Into Renewable Energy
Bernard Looney, BP’s new chief executive, wants to cut his company’s greenhouse gas emissions down to zero by 2050. To do that, the world’s sixth-largest energy company is committing itself to massive investment in renewable energy, including wind, solar and biofuels.
Implications of the Coronavirus for Natural Resource Investors
The coronavirus and the impact of containment efforts on global economic growth and oil demand is influencing investor sentiment and behavior, according to Franklin Equity Group’s Fred Fromm. Despite the outbreak’s near-term impact on commodity prices and natural resources stocks, he explains why he thinks the situation is likely to be manageable for most companies in the long run.
What’s Behind the Breakout in Gold?
This week’s breakout in gold is an epic expression of our times in which potential economic problems are quickly followed by massive actual and expected responses by central banks and governments. The problem de jour (for both markets and the public) is of course the real and scary health and economic consequences of a further spread COVID-19.
The Coronavirus and Emerging Markets: Ready for a Rebound?
As a recovery in global manufacturing began to take hold in the fourth quarter of last year, commodity prices rose dramatically. Yet, emerging market (EM) stocks failed to see the similarly strong outperformance of U.S. stocks that typically accompanies rising commodity prices.
More of the Same
The economy was mixed in 2019. Consumer spending, while uneven, was relatively strong, supported by solid fundamentals. Business fixed investment and manufacturing were weak, but not “recessionary weak.” January data are to be taken with a grain of salt – seasonal adjustment is huge and weather (good or bad) can exaggerate – but figures point to more of the same.
A Multi-Asset Approach to Assessing Risk and Opportunity in Emerging Markets
While there are a number of uncertainties in the global economy today, many investors may not realize the depth and breadth of potential opportunities emerging markets still offer—on both the equity and fixed income side.
Weekly Gasoline Price Update: Regular and Premium Mostly Unchanged
The price of Regular and Premium are a penny and unchanged, respectively, from last week. According to GasBuddy.com, Hawaii has the highest average price for Regular at $3.54 and Mississippi has the cheapest at $2.07. The WTIC end of day spot price closed at 52.29, up 5.5% from last week.
Monthly Market Risk Update: February 2020
It’s time for our monthly look at market risk factors. We had a strong start to the year, with U.S. markets at all-time highs by mid-January. But a risk-off sentiment driven by the spread of the coronavirus from China spooked investors, leading to modest declines for equity markets at month-end.
Peace for Our Time
The cognitive dissonance in the credit market is stunning. I recently have had the feeling that I’m living peaceably in Britain during the 1930s while on the continent the Germans were building weapons, expanding their army and navy, and opportunistically grabbing land.
Weekly Market Snapshot
The spread of the coronavirus COVID-19 appeared to be slowing, but adjustments in the criteria for recognizing cases changed, boosting the reported number of infections. The change increased anxiety and uncertainty about the economic impact.