China launched their new Crypto-Yuan (BSN) on Saturday, April 25, in Beijing. The event was attended by government officials and leaders of organizations that joined the initiative. These include the China Mobile Communications Project Institute, UnionPay payment network, mobile operators China Mobile, China Telecom and China Unicom, and Beijing Red Date Technology.
Currently there are over 3 million cases of coronavirus and over 211,000 dead around the globe. In the US there are over 1 million cases of the infected documented at present. Many nations are starting to reopen, including Italy. In the US some of the first states to reopen are Oklahoma and Georgia. However, many other states plan to open soon too, but with restrictions. The restrictions include wearing masks and people asked to be 6 feet apart. The US Guidelines on the reopening three phases here.
The world is not going to be the same after the COVID-19 pandemic. The US Government is working on quantifying the damages coronavirus caused to the economy and China’s liability. The projected number is over $10 trillion. Also, there is a discussion of US defaulting on debt to China. Even though many nations are slowly starting to reopen their economies and providing plans in phases to reopen, the virus is still here.
China is rolling out its own state owned digital cryptocurrency DCEP (which stands for the /electronic payment system). It is otherwise known as China’s central bank digital currency project. The digital yuan is expected to function more like a counterpart to paper money than a cryptocurrency. Unlike Bitcoin, Etherium and other cryptocurrencies, the DCEP value is expected to remain stable. Of course, it is China, therefore there would be no chance of privacy and China’s Central Bank will be able to monitor every transaction.
Coronavirus has forced a majority of nations around the globe to implement drastic measures. These include the support of businesses and private citizens to alleviate losses and financial strains. In the US and Canada unemployment applications are reaching all time highs. A majority of nations in the West embraced an approach adverse to globalism.
The virus originated in China and they didn’t take initial reports seriously, instead they threatened doctors and closed a laboratory that published an open source genome sequence of the virus. If it wasn’t for conglomerates craving marginal profits and moving a majority of manufacturing from the West to China, it wouldn’t have such catastrophic effects on the global population.
This week there was a discussion in Russia about the possible countermeasures the US is planning against China’s One Belt One Road Initiative. Interestingly, due to the coronavirus and China, the stock markets are experiencing a turmoil.
The reason for the discussions is to develop additional strategies between Russia and China pertaining to the One Belt, One Road initiative, despite the virus outbreak. US Secretary Mike Pompeo also announced that US President Donald Trump has invited Southeast Asian leaders for a meeting in Las Vegas next month. The summit is supposed to take place March 12, 2020.
A year-end performance review of Durig’s Portfolio Solutions, designed to help you earn income, covering some of the key benefits that each can provide. The following portfolios will be reviewed in this article:
- Fixed Income 2 (FX2) Managed Income Portfolio
- Dividend Aristocrats – High Dividends & Growth Over Time
- Income Aristocrats – Multi-Asset Income Portfolio
- Dogs of the Dow – High Blue Chip Dividends
- Dogs of the S&P 500 – Blue Chip Dividends
Fixed Income 2 (FX2) Managed Income Portfolio
These days online shopping has become part of many regular shopping habits in many households around the globe. It is supposed to simplify and save time compounded with convenience. With the emerging of the virtual assistants like Alexa, it is even easier. Being an Amazon prime member, the convenience of free guaranteed delivery within 48 hours and in some instances 24 hours is an attractive shopping method.
China and the United Stаtеѕ are close to concluding the fіrѕt рhаѕе оf a trаdе расt, the Global Times, a tabloid run by the ruling Communist Party’s official People’s Daily, said оn Monday. Reports, citing еxреrtѕ сlоѕе tо thе Chinese gоvеrnmеnt, said Bеіjіng аlѕо rеmаіnеd соmmіttеd to continuing talks оn thе second or even thіrd рhаѕе of аn аgrееmеnt wіth thе Unіtеd Stаtеѕ. US Prеѕіdеnt Dоnаld Trumр ѕаіd Friday thаt a trade deal wіth Chіnа “іѕ lіkеlу tо bе vеrу close.”
In this review, Durig examines the ways in which holding a diverse portfolio of dividend paying, high quality blue chip stocks can help to provide investors some much needed stability.
- Lifetime Return of 14.06%
- Average Dividend Yield of 3.34%
Quality Investments That Deliver
As trade tensions between the US and China continue to plague financial markets, investors are looking for high quality investments that can still deliver.
Durig has found the solution; blue chip dividend stocks.
The European Union (EU) members will hold discussions on the November 19 in Brussels, Belgium on measures needed to stop China’s domination in the area of rare earth elements and other critical resources. The issue is relevant due to the US-China trade war and security issues. It does not help that Russia recently decided to send over 82 tones of monazite to China in the near future. Monazite is a reddish-brown phosphate mineral containing rare earth metals.
The 11th BRICS Summit will be held in Brasília, Brazil on November 13-14, 2019. This year’s BRICS slogan is “Economic Growth for an Innovative Future”. BRICS is the acronym coined for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. This year there will be two distinct differences:
1) Hightened security measures due to the unrest in South America. During the summit, the Brazilian military will be deployed to the area.
2) The partners from other nations will not be invited. Usually, partners are invited to the summit to ink trade deals and engage in additional open dialogue.
In this special review, Durig benchmarks the performance of its three unique blue chip equity portfolios, the Dogs of the Dow, Dogs of the S&P 500, and the Dividend Aristocrats, all of which are designed to capture high quality blue chip dividends of some of the most reputable companies on wall street.
With interest rates continuing to fall and attractive yields becoming increasingly difficult to find, many investors are turning away from conventional fixed income investments such as US Treasuries.
A review and performance recap of Durig’s highly successful Dividend Aristocrats Portfolio that also compares the portfolio to another aristocratic dividend portfolio. The Dividend Aristocrats Portfolio was also designed with income stability in mind, maintaining investment focus on only higher quality blue chip companies known as “Aristocrats.”
October Performance Highlights
- Average Dividend Yield of 3.51%
- Lifetime return of 9.44%
- Excess Return of 3.27% (vs. benchmark)*
- Alpha of 7.95 (vs. benchmark*)
- Beta of 0.18 (vs. benchmark*)
On the third day of Bangladesh Prime Minister Sheikh Hasina’s visit to Delhi Sunday, Hasina inaugurated a drinking water project which will be supplied to Sabruma town in Tripura from Feni river water. However, the issues that many have been pressing in Bangladesh— such as India’s greater support for the Teesta river water sharing or Rohingya repatriation— have not seen signs of significant progress.
Up to this point the Trump presidency has been marked with controversy, uncertainty, disapproval, and excitement. Of All of the president’s policies none embody these characteristics as well as his tariffing of Chinese imports, and the subsequent trade-war with China. This trade war has caused volatility in the stock market, increased costs to American manufacturers, and has threatened US imports into China. It has also has also helped to protect American industry and to give the US leverage against China to renegotiate trade agreements.
Brexit is the withdrawal of the United Kingdom from the European Union, after the referendum held on 23 June 2016. The HBO documentary Brexit depicts the behind the scenes experience of the referendum. The UK is a constitutional monarchy with a parliamentary system of governance that is based off of the Westminster system. Executive power rests in the hands of Her Majesty’s Government, the prime minister and the cabinet who are all members of the Privy Council. Legislative power is held within the bicameral parliament, the House of Commons and the House of Lords, the former being elected and the later appointed.
Brazilian President Jair Bolsonaro announced Friday evening that he will deploy a number of members of the armed forces to cope with the huge number of fires that swept the Amazon jungle. “Forest fires can occur in any country and should not be used as an excuse for international sanctions,” he said in a televised address.
Chinese official media announced on Friday that FedEx’s previous explanation of Huawei’s express shipments to the United States as an “operational failure” has been rejected. According to the report, FedEx was “involved in keeping more than 100 Huawei company parcels” and other illegal activity. This is leading to speculation that the US company may end up on China’s list of “unreliable entities” in the near future.
It’s said that nothing ever really gets done at the G20, which is currently meeting in Osaka, Japan. Nineteen member countries and the European Union agreed to a new deal to tackle climate change. Guess who was the lone holdout. President Trump was harshly criticized, at home and abroad, for praising Saudi Crown Prince Mohammed Bin Salman, who ordered the killing of Washington Post columnist (who had legal residency in the U.S.) Jamal Khashoggi. There was one cautiously positive development to emerge from the summit, however. Trump and Chinese counterpart, Xi Jinping, agreed to restart talks and temporarily de-escalate the trade war.
One down, two to go. On Wednesday, the Mexican Senate passed the United States-Mexico-Canada Agreement, becoming the first nation, of three, to ratify the new trade deal. The agreement was met with little resistance, relative speed, and enthusiastic celebration from the Mexican government upon ratification. That was the easy part. The USMCA still faces an uphill battle in Washington, and a race against time in Ottawa.
On Sunday, President Trump tweeted an escalation to his trade war with China, warning tariffs would more than double, from 10% to 25%. By Tuesday, stocks were sent tumbling, and companies scrambling. The Dow Jones Industrial Average dropped 472 points Tuesday, it’s worst day in four months. Grain futures hit their lowest mark in more than 40 years. Companies weren’t given much in the way of warning, with tariffs due to increase Friday. They’ll have to decide whether to eat the tariffs themselves or pass the costs on to consumers.
Trump’s escalation comes amid a five-month truce between the world’s two biggest economies, and as the U.S. and China appeared close to a deal. However, Administration officials say China has been backtracking from earlier commitments. In a Washington Post op-ed, former chief strategist Steve Bannon urged the president to “follow his instincts and not soften his stance against the greatest existential threat ever faced by the United States.” Trade advisor Peter Navarro, and others, see no deal as preferable to any deal, and some fear the president will cave, again.
- EU: President Trump in an early morning tweet on Tuesday touted his administration’s tariffs on $11 billion of European Union products in the wake of a World Trade Organization (WTO) ruling.”The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products!” he said.
- Markets anticipate a trade deal is coming and the truce will be extended. All sides want a settlement so we believe it will be achieved. Mnuchin and Lighthizer are set to meet their Beijing counterparts on Thursday with the goal of hashing out a deal ahead of a March 1 deadline when U.S. tariffs against China are set to increase to 25 percent from 10 percent on $200 billion worth of Chinese goods.
- GABON: Shots were fired Monday morning in the Gabonese capital, Libreville, as military officers attempted an apparent coup Monday morning. A group calling itself the Patriotic Movement of the Defense and Security Forces of Gabon seized state radio and announced their dissatisfaction with ailing President Ali Bongo.
- SYRIA: During a four-day trip to Israel, national security advisor John Bolton announced the US would only withdraw troops from Syria with assurances that Turkey would not attack America’s Kurdish allies. There is no timetable for such a withdrawal, Bolton added.
- SERBIA: Thousands of people took to the streets of the Serbian capital, Belgrade, to protest President Aleksandar Vucic and his right-wing Serbian Progressive Party on Saturday. The protests were sparked by the assault of opposition politician Borko Stefanovic by unknown assailants in November.
- CHINA: American and Chinese officials will begin talks aimed at resolving their trade war on Monday. They are the first formal meeting since the two sides agreed to a 90-day truce in Argentina. Skepticism, however, remains as to whether any breakthrough can be achieved in Beijing.
- BRAZIL: President Jair Bolsonaro defended the deployment of 300 troops to the northeastern state of Ceara, which has been ravaged by gang violence. It is providing the first test of his right-wing administration, which was inaugurated New Year’s Day.
- PREVIOUS: International Roundup: China, Channel, Congo, Colombia
- CHINA: Presidents Xi Jinping of China and Donald Trump of the United States remain optimistic about a possible trade deal between their two countries. The two spoke on the phone Saturday, and hope to reach a deal during the 90-day ceasefire period, which was announced at the G-20 summit.
- BRITAIN: Home Secretary Sajid Javid agreed to a joint action plan with French counterpart Christophe Castaner to tackle a rise of migrants trying to reach Britain in small boats. Some 220 people have attempted to cross the English Channel since November.
- CONGO: Long-delayed presidential elections in the Democratic Republic of Congo are underway. Voters in the capital, Kinshasa, braved torrential rain, long delays, and broken machines to participate in what might be the first peaceful transfer of power in the nation’s history.
- VENEZUELA: The Venezuelan government announced it is willing to investigate a plot to assassinate Colombian President Ivan Duque, involving three of its nationals. Relations between the neighboring countries— and the leaders personally— have been tense.
- BANGLADESH: Bangladesh’s leading lady, Sheikh Hasina, won a third term as Prime Minister Sunday, amid widespread claims of vote-rigging. Seventeen people were killed across the country as the vote took place.
- PREVIOUS: International Roundup: Detain, Delay, Defeat, Defect
- Huawei executive arrested on a U.S. extradition warrant in Canada because Huawei is suspected of trying to evade American sanctions on Iran. U.S. prosecutors have been investigating since 2016 whether Huawei violated U.S. export and sanctions laws by shipping U.S.-origin products to Iran.
- China is interested in expanding its strategic and long-term relationship with the Islamic Republic of Iran. The Chinese government and various political and economic institutions, emphasized the need for expansion of the banking and financial relations between the two countries.
- Iran and China have found a way for China to continue buying Iranian crude and pay for it without risking a U.S. sanction breach. China had a special bank dedicated to handling payments for Iranian oil during the international sanctions against Tehran earlier this decade, so finding ways around sanctions is hardly new.
- “I am a Tariff Man,” Trump announced to signal his devotion to import taxes–a remark that served to downplay the likelihood of ending his trade war with China. Fear that an escalation in tariffs would choke off economic growth and possibly send a global slowdown into a recession.
- That massive data breach that hit hotel group: Marriott believes the hackers were working for a Chinese government intelligence gathering operation. Marriott said that a hack that began four years ago had exposed the records of up to 500 million customers in its Starwood hotels reservation system.
- Trump claimed a “BIG leap forward,” But scant details and few public commitments by China on what its commitments would be under the verbal agreement between Trump and Xi erased some market exuberance over what was brokered between the world’s two largest trading partners.
- Previous: How the China Trade “Pause” Effects Stocks
- The top 20 U.S. companies with the highest revenue exposure to China, according to Goldman Sachs. The three-month cease-fire in the trade war should offer a reprieve for United States companies that produce and sell in China also.
- Global markets surge on China-U.S. trade truce, dollar dips, yuan up. Most of us were hoping that we would come out of these discussions with no new tariffs and a pause, which is ultimately what we got
- Possibly imposing tariffs on mobile phones imported from China to the U.S., including the Apple iPhone. Trump, who happens to be an iPhone user himself (he actually has a pair at his disposal 24/7) Trump claims U.S. consumers would be able to financially handle a 10% tariff on the iPhone.
- The truce in the trade dispute between the U.S. and China should boost financial markets, at least through the year’s end. The stock market’s recent wild gyrations likely will persist as the two countries strain to reach a permanent accord.
- Caterpillar rose 2.4 percent and Boeing jumped 2.9 percent. Chip stocks which have operations in China and a large amount of their sales in the country climbed with Micron and Nvidia each adding more than 2 percent.
- Previous: International Roundup: Rebellion, Provocation, Negotiation
- U.S. President Donald Trump, Canadian Prime Minister Justin Trudeau, and outgoing Mexican President Enrique Peña Nieto concluded fifteen months of often contentious talks on Friday, and formally signed the US-Mexico-Canada agreement, or USMCA, which will replace NAFTA.
- Canada remains concerned over steel and aluminum tariffs, imposed by Washington, and left unresolved in USMCA. Prime Minister Trudeau used the signing ceremony as another opportunity to urge President Trump to drop them.
- The agreement must now be ratified by the legislatures of each country, which is far from certain. In both the new and old Congress, USMCA faces considerable hurdles, with everyone finding something to dislike.
- Traditional business conservatives object to USMCA as moving North America further from free trade, and leaving the United States “with diminished trading opportunities, rather than expanded trading opportunities with Mexico and Canada.”
- Social conservatives view sexual orientation and gender identity protections, included at Canada’s insistence, as a loss for American sovereignty.
- The president, and his supporters, are hailing USMCA’s signing as nothing less than a win for America.
- Risks are piling as “significantly.” Headwinds such as looming Fed hikes, a housing market that is rolling over and growth and trade-war worries festering.
- Strong earnings may not be enough to move the barometer for tech because sentiment is so negative. Investors have to pick their spots in tech right now. GDP could be the kiss of death. If GDP falls, techs will get crushed
- Midterm elections loom over the stock market as Republican control of the White House and both houses of Congress will end after a two-year stretch. That could be bad news for stock investors. The worst stock market returns have come when the president is a Republican, and the Republicans and the Democrats each control one house of Congress.
- Gold is likely to continue to benefit from stock market volatility and weakness, short-covering and rising risk aversion. The potential catalysts for increasing geopolitical risk include tensions over Italian government finances and mounting pressure from the West on Saudi Arabia over the death of dissident journalist Jamal Khashoggi.
- Short-term bond funds are offering more yield than they have since before the financial crisis plus investors aren’t getting paid much more to invest further out the maturity spectrum.
- Q3 FAANG Earnings Likely to be Solid: investors’ darling and the biggest driver of the nine-year bull run.
- Previously: Stock Market: Buy with Both Arms or Bubble Ready to Bust?
- Moringstars top rated bond SMA during higher interest rate spikes, this short term fixed income investment SMA provided the best 1,3 & 5% year track record in high yield fixed income again according to Morningstar.