Happy new year to everyone. I hope your Christmas and Holidays were spectacular, and I hope you brought in 2015 with your friends and family. Unfortunately I have a lil exam (CRC®) at the end of the month, coupled with work has made it hard for me to post for your financial pleasure. But you are here now so let’s stop the gibberish and get to the fun stuff.
2015 Weekend Reads and Predictions
Just when I started filling my scantrons in correctly with “2014”….
Finally saw the Interview last night, and it was pretty funny. But I couldn’t help remembering Dennis Rodman’s visits to North Korea.
The movie’s main character is a news anchor who falls victim to Kim Jung Un’s show that he puts on for him when visiting North Korea. Sounds exactly like Dennis Rodman…
Movie critiques aside, the US is still angry about North Korea hacking Sony. And rightfully so. Hacking foreign countries’ networks with the intent to destroy property is not cool. So the US is going to hit North Korea with some sanctions, and maybe more to come. Via Bloomberg
Let’s talk oil. I am sure you have been pleased, as I have been, at the gas pumps recently. If you missed it I did a good piece explaining what’s been going on and why with oil here. Oil prices in 2014 tanked to around 50% drop in prices, depending on which oil indicator you look at. This isn’t cool for countries who’s economy depend on exporting oil. To combat this, oil-dependent countries have ramped up oil production significantly. More on Bloomberg
I’m looking at Russia right now. I outlined in my previous post how Russia depends on oil exports; but if their economy enters a recession like many experts are suggesting, then what do they do? Russian citizens are finally becoming that their leader may be to blame for the looming recession. Once the oligarchs and statesmen start feeling the recessionary heat, Putin may have some issues. There is also the scary situation (summarized previously) that Russia does not generate enough money to pay their debts to European Banks. Since Europe is already hurting and flirting with another recession, that would lead to many more economic issues.
Even though the decline in prices are not necessarily “sanctions”, they are having the same effect on Russia. ZeroHedge has a good summary of the historical only modest effects of economic sanctions.
New Year, new you. Right? Here are some neat apps to help you save more for that Yacht, Retirement, or whatever you need to save for. Via MarketWatch
A good financial pundit always admits his mistakes. So before I make some (probably meaningless) predictions for 2015, I will say that a year ago I followed the herd predicting interest rates would rise and the 10 year Treasury would be at 3.30% compared to the actual 2.11%…
What do I see in 2015? I see the US economy as being the strongest kid on the block, still. The Federal Reserve will raise interest rates in July, and we will see a correction in the stock market but it won’t last more than a few months.
People will start to realize the importance of following ETF and Mutual Fund cash flows and the important implications it has on the economy. Possible bubbles coming from student loans and/or Business Development Company Mutual Funds.
Thanks for reading!