Value Stock Guide's review of major world and economic events driving the markets and the investment outlook. While stock valuations do not depend on macro issues, sometimes these trends may drive our investment selections as they may show up as potential catalysts for stocks that we may have traditionally passed over as potential value traps.

We May be Reaching the Point of Affordable Renewable Energy


The current administration has placed a priority on developing renewable energy industry in the United States. As is the case with any substitution product, the adoption hinges on the ultimate cost to the consumers. For the producers, it is often a catch-22 situation. To be competitive in the market, they need to build up scale […]

Are Market Indexes Providing a Misleading Portrait of the Economy?


One of the simplest methods of understanding the current financial market is through analysis of market indexes and comparing their values to past reference points like the 52 week high and the 52 week low. Many investors have had their eye on these market indexes lately, confused about why they seem to be doing so […]

Economic Data Often Drives Capital Markets


Macro changes to economic circumstances are a significant driver of the flow of money throughout the globe. As economic information is released to market participants and investors absorb new information their wiliness to commit capital to specific areas changes. Global macro changes can cause specific influences to certain securities such as currency pairs, sovereign debt, […]

Gold Holds Gains after the UK is Downgraded


Gold exchange traded fund prices rallied for the third consecutive day, moving out of oversold levels as investors moved back into precious metals. The strong performance led gold minors higher which helped the broader equity indexes gain traction. Overall sentiment remain negative, and it will likely take a while before bullish sentiment in the precious […]

Will Europe’s Malaise Spill Over into the US?


Spring is in the air and similar to the last three spring seasons, issues related to the Euro zone has taken center stage injecting a modicum of fear back into the capital markets. Although US investors were treated to an early fiasco in the form of the Italian elections, the banking disaster in Cyprus is […]

The US Debt Default Scenario for Investors

Media is having a field day discussing the nightmare that will unfold on the citizenry if US does default on its federal debt. No doubt that the possibility exists, and a US debt default will have a large impact on our personal finances. But as value investors, we are more inclined to look past short […]