Michael Yoshikami, Ph.D., CFP®, is CEO, founder and chairman of Destination Wealth Management's Investment Committee at Destination. Founded in 1986, Destination is a San Francisco Bay Area-based independent, wealth-management firm. He leads the research initiatives at DWM and develops tactical allocation strategies for firm portfolios.
Michael is also finance professor at the National University of Singapore and authors finance white papers for the Centre for Asset Management Research & Investments (CAMRI) at NUS.
Michael was named by Barron's as one of the Top 100 Independent Financial Advisors for 2009, 2010, 2011, 2012 and 2013. He holds a BS in business administration, MBA and Ph.D. in education. He is also a Certified Financial Planner®.
With all the talk of the United States in decline (and China on the upswing) there's one inescapable fact that often gets lost in the debate — China and the U.S. are dependent on each other and if either country flounders, there will be a dramatic negative effects on both economies.
With all the talk of green shoots and hopeful expectations, the reality is companies must begin to report better earnings if we expect equity rallies to continue forward. Hope and expectation are all good and fine, but reality must match real-world company performance. July earnings will offer up some clues on what the rest for the year will look like.
As green shoots continue to pop up and give hope that a depression has been avoided, it's important to recognize that there still are significant headwinds facing the U.S. and global economy. There's a real chance that we may face a menace that proved to be destructive for investors portfolios decades ago: Stagflation
Investors are reeling from the latest investment bubble to burst — long-term Treasury bonds. With mutual fund managers and investors absorbing losses of more than 15% on supposedly safe assets, this highlights the perils in fear-based investing.
With U.S. deficits rising at a record pace, the possibility that America will lose its AAA investment rating is becoming more and more plausible. While this scenario far from inevitable, there is certainly concern that rising debt levels will decrease the creditworthiness of the U.S. government. The result — a weaker dollar.
The secret is out. After years of whispers in the economic dark President Obama said out loud what we have all known was a fundamental truth: China is the banker to the United States and buying the debt that keeps the American economy moving forward. This is globalization at work though a condition not desirable to the United States.
Nouriel Roubini, otherwise known as Dr. Doom, was interviewed on CNBC today where he outlined his views on the world economy. As usual he continued his warnings about significant issues facing the global economy. His arguments on the theme that denial of a deleveraging world is a dangerous position to take was as always, very thoughtful.