Economic and Investment News Bits
  • Investing in U.S. Energy Independence will be the topic of PDS Planning’s next client education event on Wednesday, November 5. Troy Shaver, from Dividend Assets Capital LLC, who also manages the Goldman Sachs Rising Dividend Growth Fund, is our featured speaker for the evening. Troy has more than 30 years of investment experience, and with a degree in geology from Dartmouth University, he is uniquely qualified to assess our nation’s coming energy independence.  Troy’s knowledge of the many different shale energy regions of the world, but specifically here in the U.S. (he is well versed on eastern Ohio’s Marcellus Shale potential) is amazing.  This will be a great opportunity for our clients to gain insight into the energy revolution that will shape the nation’s economy for years to come.  Invitations will be sent as the event date gets closer, but please put this on your calendar.  Join us at 6 PM for hors d’euvres, with the program starting at 6:30.
  • “The fact that the Nikkei Index (Japan) now makes the top 20 of global returns over the last 6 months, beating all major developed country benchmarks, may start to generate some enthusiasm among foreign investors,” (Source: Marketfield Asset Management).
  • “Despite a U.S. business cycle that is in its sixth year of expansion, many are still skeptical about investing in the stock market. While such skepticism is a sign of a healthy market, it also means that investors are likely underweight equities—and could miss out on stocks’ potential returns over the long run”, (Source: J.P. Morgan Asset Management).
  • Real estate consultant John Burns released a report last week that shows “student loan debt will cost the real estate industry 414,000 home sales in 2014 alone, or about $83 billion in sales. Every $250 per month in student loan debt reduces a household’s home purchasing power by $44,000. Young people are so indebted that they cannot afford to buy new homes.”
  • In a recent survey conducted by U.S. News & World Report, Cincinnati’s Walnut Hills High School received the #1 ranking of 735 public high schools in Ohio. It was followed, in order, by Wyoming H.S., Indian Hill H.S., Madeira H.S., Olentangy Liberty H.S., Hudson H.S., Olentangy H.S., Bexley H.S., Olentangy Orange H.S., and Oakwood H.S.


Thought for the week

“Guilt: the gift that keeps on giving.”

Erma Bombeck, American journalist (1927-1996)

Graph of the Week


The above chart from Euromonitor and U.S. Global Investors highlights the huge lead China has over every other economy of the world in growth of electronic commerce.  The growth in U.S. e-commerce has been about 75% year-over-year.  By contrast, China’s e-commerce growth has been more than 200%.

The success story of Alibaba Group (BABA) should remind investors of China’s world-leading growth in e-commerce and further financial gains of the internet, particularly mobile apps.  Leading Chinese internet franchises may continue to benefit from positive investor sentiment.  Americans are very familiar with Amazon and several other e-commerce sites.  For those who have not yet checked out Alibaba online, we suggest doing that.  It really looks very American in every respect.

As for the Chinese economy, it is very different from its old nemesis Russia, which has been called “an oil well with a central bank sitting on top of it.”  China is much more consumer driven.  J.P. Morgan emerging market fund manager Sebastian Luparin likes Chinese auto and consumer names, noting the middle-class economy is starting to move once again.


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