The concept of the ‘commodity super cycle’ was in vogue before the onset of the global financial crisis. The thinking was that with an increasing world population, and faster growing emerging nations like China and India, changing consumption patterns would lead to shortages of many of the world’s scarce resources. In this article, we look at how this has changed and what the outlook is for the main commodities as we enter 2015.
As we move into 2015, it seems the growing gap between Europe and the US looks set to usher in a period of euro weakness and dollar strength. With central banks around the world on different paths, this article looks at how the main currencies might perform in the year ahead.
Cents for Kids is an initiative focused on building financial literacy in children and supporting parents with the tools and resources they need to begin a healthy dialogue with their children about money.
The once impenetrable German economy is showing signs of weakness, which has contributed to the DAX being one of the worst performing stock markets this year. But with German equities now trading at a significant discount to other major markets, opportunities are opening up for investors to buy good blue chip German companies at discount prices.
High yield bonds, or what are better known as junk bonds, have dominated the front pages of the financial press in recent months. After enjoying a great run in recent years, yields have been pushed to record lows. As we get closer to higher interest rates, further gains will be harder to come by, and following the ‘Dodd-Frank’ regulation changes, investment banks will hold less corporate bond inventory thereby reducing the liquidity of the asset class.
After all the opposition in Europe to QE during the worst of the debt crisis, Mario Draghi announced in September that the ECB will launch a QE programme. Sceptics argue that it is too little too late, but at least the taboo has finally been broken to expanding the monetary base in Europe. This article looks at how weak the euro will get as a result of this QE programme.
With a huge amount of liquidity available throughout global financial systems, it has undoubtedly invigorated animal spirits in corporate boardrooms. One area where this is most noticeable is the growing appetite for mergers and acquisitions (M&A). This article looks at some of the reasons why M&A has made a comeback, and the hotly debated topic of ‘inversion diversion’, which is increasingly irking the Obama Administration.
Having just endured the worst housing crisis in the history of the state, it seems inconceivable that we could stoke another property bubble so soon after the last one. However, with rapid gains in the property market over the past year, coupled with a chronic lack of supply in Dublin, unless something is done to take the froth out of the market, we think there is a real risk that property prices get stretched to unsustainable levels again.
Saving, spending and sharing: when it comes to the facts of money our kids know a lot more than we think. Raising children who are mindful with their money is all about taking advantage of the opportunities to demonstrate our values in relation to financial decisions throughout life.
Most parents would like to alleviate life’s struggle for their children without eliminating it entirely, and where to strike that balance is a matter for individuals to discuss and decide.