Juggling Dynamite

Germany is known as Europe’s stronghold, but Germany’s investment freeze calls into question its real economic strength and future growth prospects. Here is a direct video link.

Germany is part of a global trend over the past few years for companies to use cash on hand for non-productive short-term incentives like higher perks for executives, and stock price levers like buying back shares and increasing dividends, but all of this only weakens future prospects for the companies, as it reduces their focus and investment in growing a longer term business model.

Bill Gross, PIMCO, says the Fed’s policies are part of the problem and not the solution. He says rates are so low you reduce the incentive among investors to take risk.Here is a direct link.

Danielle Park and INN Senior Editor Andrew Topf discuss macroeconomics and commodities. Park, author of Juggling Dynamite, believes it’s positive that commodities are moving down because it means a base is being established for a recovery in the business cycle. Park also said there is great risk right now in the S&P 500 (INDEXSP:.INX) and income-paying instruments like dividend-paying stocks.

Here is a direct link.