There is a saying: "old habits die hard". This is why I always say what we see happening in the global economy is not just a function of economics and politics, it is also a function of culture. For any culture to change their practices, it would usually take an entire generation and the will to change has to be forceful. Usually, this means that reality must have shifted so much as to burn an indelible mark in the psyche of its people.
Thus, we saw the Americans saving more when it looked as if their country was plunging into a bottomless pit in the midst of the global financial crisis (which, by the way, originated in the USA). A worsening of the crisis was averted by the decisive actions of the US government. With the spectre of prolonged hardship receding, it seems that the American consumers are back at what they do best. This is a double edged sword, I do not doubt. However, it is good news for the economy while it lasts.
Visa 2Q profit jumps as consumer spending rebounds
Visa posts 33 percent jump in 2nd-quarter profit as consumer spending gains strength
Eileen Aj Connelly, AP Business Writer, On Wednesday April 28, 2010, 6:49 pm EDT
SAN FRANCISCO (AP) -- Revived consumer spending drove Visa Inc.'s fiscal second-quarter profit up 33 percent and the credit and debit card processor forecast strong revenue growth for the full year.
Visa's growth continued to lean heavily on surging debit card usage as customers still prefer paying with checking account funds rather than with credit cards. The increased fees that Visa is collecting from merchants for processing customers' payments echoes the improved sales results many companies have reported in recent weeks as consumers appear to be more confident about spending.
In the U.S., Visa said 19 percent more transactions were made with debit cards and the size of those purchases in dollars rose 18 percent. In foreign markets, 20 percent more transactions were made with debit cards and the value of those transactions in dollars surged 33 percent.
Chairman and CEO Joseph Saunders noted that volume growth fueled the earnings gains, but said the company is "increasingly optimistic that economic growth will gradually improve."
Read full article here.
The Bears are Wrong: "The Consumer Is RE-leveraging," Jon Markman Says
Posted Apr 26, 2010 09:34am EDT by Peter Gorenstein
The recent data is convincing; The U.S. consumer is making a comeback. New home sales jumped 27% percent in March, rising to a seasonally adjusted annual pace of 411,000, the Commerce Department said Friday. Meanwhile, durable goods orders (large manufactured products) rose the most since the 'great recession' began.
As sure as buying low and selling high is a winning formula, an American with money will purchase goods, says Marketwatch columnist and author Jon Markman. "Anybody who's bet against the American consumer over the long term has gone broke," he tells Aaron in this clip.
Related posts:
New global economic leadership.
Real estate as a hedge against inflation.
PRIVACY POLICY
Featured blog.
1M50 CPF millionaire in 2021!
Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.
Archives
Pageviews since Dec'09
Recent Comments
Get this Recent Comments Widget
ASSI's Guest bloggers
- boon sun (1)
- Elsie (1)
- Elvin H. Liang (1)
- ENZA (3)
- EY (7)
- FunShine (5)
- Invest Apprentice (2)
- Jean (1)
- JK (2)
- Kai Xiang (1)
- Kenji FX (2)
- Klein (2)
- LS (2)
- Matt (3)
- Matthew Seah (18)
- Mike (6)
- Ms. Y (2)
- Raymond Ng (1)
- Ryan (1)
- Serejouir (1)
- skipper (1)
- Solace (13)
- Song StoneCold (2)
- STE (9)
- TheMinimalist (4)
- Vic (1)
Resources & Blogs.
- 5WAVES
- AlpacaInvestments
- Bf Gf Money Blog
- Bully the Bear
- Cheaponana
- Clueless Punter
- Consumer Alerts
- Dividend simpleton
- Financial Freedom
- Forever Financial Freedom
- GH Chua Investments
- Help your own money.
- Ideas on investing in SG.
- Invest Properly Leh
- Investment Moats
- Investopedia
- JK Fund
- MoneySense (MAS)
- Next Insight
- Oddball teen's mind.
- Propwise.sg - Property
- Scg8866t Stockinvesting
- SG Man of Leisure
- SG Young Investment
- Sillyinvestor.
- SimplyJesMe
- Singapore Exchange
- Singapore IPOs
- STE's Investing Journey
- STI - Stocks Info
- T.U.B. Investing
- The Sleepy Devil
- The Tale of Azrael
- TheFinance
- Turtle Investor
- UOB Gold & Silver
- Wealth Buch
- Wealth Journey
- What's behind the numbers?
The US consumers are back!
Thursday, April 29, 2010Posted by AK71 at 11:15 AM 2 comments
Labels:
consumption,
deleverage,
FA,
leverage,
US economy
Charts in brief: 28 April 10.
Wednesday, April 28, 2010
Straits Asia Resources posts 68% fall in Q1 net profit to $15.4m
Wednesday, 28 April 2010
Wednesday, 28 April 2010
© 2010 - The Edge Singapore
CapitaMalls Asia: A white spinning top formed today on lower volume. This is a reversal signal, again. The MACD has stopped increasing its distance from the signal line. This suggests that the downward movement in price has slowed down somewhat in intensity. Stochastics and MFI are going deeper into oversold territory and the OBV turned down slightly. All in, the technicals are still bearish. If the reversal signal delivers, immediate resistance are at $2.24 and $2.27, provided by the declining 20dMA and 50dMA respectively.
Healthway Medical: A gravestone doji formed today as price closed at 15.5c. A dead cross formed as the descending 20dMA cuts the 50dMA from the top. Technically, things look grave, pardon the pun. However, the more or less flat OBV plus the fact that the Stochastics is in the oversold region suggest that any downward movement is likely to be a slow drift rather than a crash.
Courage Marine: The MFI continues to move lower away from the overbought region. OBV dips down slightly as the price action formed a doji today. Price touched a low of 22c for the second day in a row, supported by the rising 20dMA. Perhaps, this counter needs to see the longer term MAs catch up with the 20dMA before its price could move higher. A correction using time, perhaps?
Saizen REIT: It is worth reminding ourselves that the longer term uptrend is intact as the descending 100wMA plays havoc with sentiments. Look at the daily chart and we see the MFI has formed a higher high and a higher low. Buying momentum has been positive. In fact, the MACD has turned up slightly today towards the signal line while still above zero.
In the weekly chart, it is quite clear that the OBV has been trending up which suggests that steady accumulation is happening over time. Any further weakness in price is likely to bring out more buyers, as such.
Singapore’s central bank says inflation could hit 4% in Q4
Wednesday, 28 April 2010
Wednesday, 28 April 2010
© 2010 - The Edge Singapore
Even the 4% being earned in our CPF Special Accounts is just keeping pace with inflation by Q4 this year. A scary thought. Bungee jumping, anyone?
Be Patient ... Big Jobs Gains Are Coming,
Chris Rupkey Says
Posted Apr 28, 2010 09:00am EDT by Heesun Wee
Las Vegas Sands Corp. Chairman and Chief Executive Officer Sheldon G. Adelson tells Yahoo! SEA's Ion Danker what he thinks of Resorts World Sentosa, 28 April 2010.
Related post:
Charts in brief: 27 April 10.
Posted by AK71 at 9:30 PM 0 comments
Labels:
capitamalls asia,
Courage Marine,
CPF,
CPF-SA,
Golden Agriculture,
Healthway Medical,
inflation,
Saizen REIT,
STI,
straits asia,
TA
Subscribe to:
Posts (Atom)
Monthly Popular Blog Posts
-
I have been thinking about really retiring in a couple of years. Confused? Didn't AK retire 8 years ago a few months before he turned 45...
-
I have been asked this question in various forms by various people over the years. "How much cash are you holding now?" However, l...
-
I used to blog about my meals in the early days of blogging. Haven't been doing it for many years. Anyway, I love fish fingers. Specific...
-
I have been thinking of taking another long break from social media to focus on other things in life. Tentatively, I am thinking of coming b...
-
Someone asked me recently would I consider investing in Alibaba or Tesla now that their stock prices are much lower. Of course, for long tim...
All time ASSI most popular!
-
A reader pointed me to a thread in HWZ Forum which discussed about my CPF savings being more than $800K. He wanted to clarify certain que...
-
The plan was to blog about this together with my quarterly passive income report (4Q 2018) but I decided to take some time off from Neverwin...
-
Reader says... AK sifu.. Wah next year MA up to 57200... Excited siah.. Can top up again to get tax relief. Can I ask u if the i...
-
It has been a pretty long break since my last blog. I have also been spending a lot less time engaging readers both in my blog and on Face...
-
I thought of not blogging about my 2Q 2020 passive income till a couple of weeks later because Mod 19 of Neverwinter, Avernus, just went liv...