Behind the Headlines

China's Military Race With the U.S.

Stephen Leeb
Thursday, August 13, 2015

Much attention is being paid to the economic race between China and America. But far less has been given to a military race, probably because America’s seeming military dominance has led to widespread complacency here.

That’s a dangerous mistake. Just as the economic gap between China and the U.S. is narrowing – and according to some measures, such as purchasing power parity (PPP), already has swung in China’s favor—the military gap is rapidly narrowing as well. In fact, when it comes to China, there are no areas where we can afford to be complacent. The implications for investors... Read more about China's Military Race With the U.S.

The Impact of Going Digital

Stephen Leeb
Thursday, July 16, 2015

In the 1960s Canadian philosopher Marshall McLuhan issued his famous dictum “the medium is the message”, arguing that television’s rising ascendancy over radio would change the nature of, and the way people respond to, news and entertainment—what today we call “content.”  

Today we’re in the midst of a rise in another new medium, digital platforms such as streaming over the Internet that are supplementing our decades-long love affair with television. But we’d contend that, especially when it comes to entertainment, the message has remained surprisingly unaltered. It seems the... Read more about The Impact of Going Digital

How Far West is East

Stephen Leeb
Friday, July 3, 2015

The deteriorating situation in Greece raises major questions not just about its future but also about the make-up of the entire world. To us, the biggest question is: how far west is east? Throughout the entire crisis we believed that somehow Greece and the European troika would devise some sort of solution that would—while not eliminating the fateful day in which Greece says goodbye to the euro—at least postpone it until other alternatives were available, and in particular the BRICS bank, was on stronger footing. We’d still make that same bet; in other words, we’re betting that the Greeks... Read more about How Far West is East

China's Threat to America's World Hegemony

Stephen Leeb
Friday, June 19, 2015

Ironies abound. In the early 1970’s Richard Nixon, arguably the most anti-communist U.S. President ever, opened up relations with China to the West. Rarely has any public official of meaningful rank acted so much against type. Although arguments against the Nixon presidency have been recited in hundreds of books and in virtually any forum one can name, he always earns credit for bringing China into the world’s economy. And indeed China has added a great deal to world growth. The country, by a wide margin, has provided the most important factor to 21st century world economic growth. For the... Read more about China's Threat to America's World Hegemony

The Infrastructure Imperative

Stephen Leeb
Friday, June 12, 2015

In his 1961 farewell address, President Eisenhower warned the nation to be alert to the potential threat to our freedoms from what he memorably termed the military-industrial complex.   

We’d argue, however, that in the years since then, neither the military-industrial partnership nor other examples of government/private industry collaboration have jeopardized our liberties. Rather, these public/private partnerships have been critical in establishing the U.S. as a leader in many vital areas. The transistor, the laser, and the Internet are all the fruit of cooperation between the... Read more about The Infrastructure Imperative

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Oil Stands Its Ground

Stephen Leeb
Friday, November 6, 2015

The U.S. Energy Information Administration announced that for the sixth consecutive week, the inventory of U.S. crude oil reserves increased, this time by 2.8 million barrels. This played a role in today's slide in the price of oil, which gave back some of yesterday’s gains. The domestic production continues to lessen U.S. dependence on foreign oil, imports of which fell by 89,000 barrels per day to their lowest level in nearly 25 years.

U.S. crude inventories last week stood at a total of 482.8 million barrels, roughly what analysts had expected, still a very elevated level by... Read more about Oil Stands Its Ground

Healthy Means Wealthy

Genia Turanova
Thursday, October 29, 2015

Often, personal finance articles on retirement concern the need for adequate income and savings. For example, we have previously discussed in the pages of Leeb Income Performance methods by which one can maximize Social Security retirement benefits both for oneself and one’s spouse. (September 2014 issue). We also previously reviewed the intricacies of Medicare Parts A and B hospitalization and medical care coverage, for which one must apply once eligible. Then there’s the need to obtain coverage for prescription medications, Part D, not included in Parts A or B. (January 2015 issue)

We see another major factor that most people may not consider for their retirement, however: the relative value of good health. Read more about Healthy Means Wealthy

Dollar's Reign at Risk

Stephen Leeb
Thursday, October 22, 2015

Several recent news items shout to us that unless America wakes up very quickly, its position as the world’s preeminent economic power could be seriously at risk. This, in turn, would threaten the dollar’s long-held role as the world’s leading reserve currency, with multiple repercussions.

A sharp decline in the dollar could occur as early as next year. It would bring about much higher prices for commodities and also for gold, which would likely burgeon in sync with other commodities. Ultimately we expect that surging gold and pricier commodities would lead to an arrangement where... Read more about Dollar's Reign at Risk

Steps toward higher long-term oil prices

by Scott Chan
Thursday, October 15, 2015

Lately we’ve often focused on oil, the lifeblood of the economy. We noted that oil has behaved a lot better lately, and although West Texas Intermediate (WTI) crude, the benchmark for domestic crude oil prices, did not manage to break through $50 and continues to swing daily, oil appears to have set a trading range between the mid- to high-$40s. Although there is still an oil oversupply that will take some time to completely dissipate, the size of the expected glut has shrunk, a bullish signal. Read more about Steps toward higher long-term oil prices

Oil Seems Poised for Run

Stephen Leeb
Friday, October 9, 2015

After rounding out another volatile month on September, oil markets at last look poised for a positive run toward the end of the year. We see trends in place to support the price of oil going forward. These include the yearend season for high demand, and the declining number of oil rigs in the U.S. The latter will help rebalance supply and demand.

We have long expected to see a bottom for oil prices at $40 dollars per barrel. Although the price of oil quickly slipped below this mark in August, demand from traders soon restored the price to the mid-40s, where it remained, albeit... Read more about Oil Seems Poised for Run

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