Individual Global Inve...'s  Instablog

November 24, 2009 by Bryan Banish – Individual Global Investor

 

In the two months since I discussed the Baltic Dry Index (BDI), the index has rebounded strongly including having set new 12 month highs in the past week. Through much of 2009, the story of the Baltic Dry Index has been one of Chinese iron ore purchases. Recently, in a positive sign for the real economy, other factors are starting to play a role. As we will see below these Chinese purchases have not abated and remain a key factor. To that factor, though, we can add two more.

November 17, 2009 by Bryan Banish – Individual Global Investor

November 10, 2009 by Bryan Banish – Individual Global Investor

                                                

Last week’s release of U.K. industrial production showed an increase in output. This finally brings the U.K. in line with the rest of the world making it about the last industrialized country to bottom in output.  As I pointed out in my article two weeks ago, this lag in industrial output was the likely reason the U.K. economy failed to grow in Q3 while most other economies did (albeit stimulus-led in some cases).   

November 3, 2009 by Bryan Banish – Individual Global Investor

                                                

I mentioned back in March that a housing bottom would be evident by the end of the summer.  As we will see below, the last six months have been largely positive for the U.S. housing market but the process has not been cheap. It’s taken more than a trillion dollars in government stimulus, GSE takeovers and purchases in mortgage-backed securities but it is official.  Housing is no longer a drag on the economy.  

October 27, 2009 by Bryan Banish – Individual Global Investor

 

The last time I wrote about global GDP, European countries Germany and France were surprising to the upside. Last week was the opposite for Britain. The United Kingdom was the first of the major economies to report on its third quarter growth in gross domestic product or GDP. Most economists were expecting a positive statistic but the UK National Statistics reported a further contraction of 0.4% from the prior quarter on its index of national output. 

October 20, 2009 by Bryan Banish – Individual Global Investor

 

In last week’s article, I highlighted that one of the key positive developments this month was the Reserve Bank of Australia (commonly referred to as the RBA) hiking interest rates by one quarter of a point to 3.25% on October 6^th.  With the release of its notes from the meeting yesterday, the logic for the decision merits some reflection.