Equity markets across the world have performed very well as most markets in Asia have given a return of 20 to 25 percent in dollar terms. India is up 30 percent in dollar terms.
“I am positive on emerging markets for about a year relative to the US,” Marc Faber, the editor and publisher of The Gloom, Boom & Doom Report, said on CNBC’s “Squawk Box.”
“If I look back, after 2014, emerging markets grossly underperformed the S&P 500. If we look at major markets in Asia, India rose 30% in USD and Chin hasn’t gone up that much which bring me to conclude that some money will move from India to Chinese markets,” he said.
Why will the money move from Indian markets to China? “Sentiments around China were very negative in the past six months to a year but that is now turning positive,” added Faber.
Commenting on the dollar, Faber said that the U.S. dollar could “easily rebound” by 4 to 5 percent from current levels, but President Donald Trump and his administration stand in the way of the currency’s long-term strength.
The greenback has had a tough year, with the dollar index tumbling nearly 10 percent since the start of 2017. At the same time, gains among currencies such as euro and peso also added to the dollar’s pain, said a CNBC report.
Commenting on Gold, Faber said it is an under-appreciated asset. Data suggest that from December lows in 2015, the GDX, the Gold ETF is up more than 100% and this year the GDX is up more than 25 percent.
If we compare the performance of the S&P, it is a fabulous performance and some gold shares have even done very well, he said.
SHILLONG: A woman forced her minor daughter into prostitution to earn money citing poverty prompting her relatives to file a complaint on Tuesday. The girl, who is pregnant and admitted in a city hospital, was sexually abused by two men facilitated by the mother. This was reflected in the FIR lodged at Madanrting police station by the girl’s brother, Lapynkupbor Umsong, and her uncle Korishon Umsong. The girl hailing from a village under Mawkynrew Block in East Khasi Hills District passed Class VI from a school in the city. The 16-year-old victim stayed with a relative here and attended school in the morning and helped the relatives during the day along with her elder sister. Last December after the examinations, the victim, third of the nine siblings, was taken away by her mother, Aitimon Umsong, from Shillong to her village. She stayed there for two days and the mother took her away to the house of a distant relative in another village about an hour from her native village in Mawkynrew. According to the relatives, at night she was taken to the house of a youth identified as Shngain Nongrum (22) and the mother compelled her to sleep with him. When the victim confronted her mother, she was told to keep quiet and her objections went in vain. The next day, they came back to her village and Lapynkupbor, a daily wage earner working in the Assam-Meghalaya border area, came to know about the incident. The brother and his uncle filed the FIR on January 12. Police went in search of the accused but since they could not find him, his father was brought to the police station. On January 16, the accused, the girl and her mother came to the police station. She told the police that her daughter was above 18 years. She had even threatened the girl to tell them she went willingly to the residence of the accused. However, the brother of the victim produced the Baptismal Certificate that showed her date of birth as December 15, 2001. No one was arrested in connection with the crime and from the police station, the mother took her to the village of the accused who again sexually exploited her and the next day she was brought back. The agony continued as the accused came to stay in the girl’s house and though her aged father objected by saying his daughter was a minor, the youth ignored the plea. The father was also chided by his wife. The relatives said no action was taken against Nongrum and Aitimon though the FIR was lodged on January 12. This prompted the brother and the uncle to file another FIR on Tuesday. The relatives said following the sexual abuse, the girl became pregnant and after a few months, she was brought to another village in East Khasi Hills by her mother who rented a house. It was when the girl was assisting her mother in selling betel nuts in Shillong that she collapsed following which she was admitted in Ganesh Das Hospital. In the hospital, she mentioned her daughter’s age as 22. The relatives said she was hospitalised for five days and after she was discharged, Aitimon brought another man identified as Hep on August 31. According to the relatives, Hep entered the bathroom in her rented house and tried to molest her. When she protested and called for help, her mother told her to accept him. After Hep left, the girl was beaten up for refusal. The relatives said once the mother locked Hep and the victim in one room but the neighbours tried to rescue her after she cried for help. The relatives of the victim said it was for money that the mother was forcing her into flesh trade.
‘Srey Moch [above, with Jolie] was the only child that stared at the money for a very, very long time,’ the US star, who directed First They Killed My Father, told Vanity Fair. Photograph: Roland Neveu/Netflix
A casting technique used in Angelina Jolie’s new film involved giving money to, then taking it away from an impoverished Cambodian child – who was awarded the part when she became “overwhelmed with emotion”.
Jolie, who is a goodwill ambassador for the UN Refugee Agency (UNHCR), recounted the method in an interview with Vanity Fair. Her made-for-Netflix film First They Killed My Father, tells the story of life under the regime of Cambodian dictator Pol Pot. According to the article, Jolie looked in “orphanages, circuses and slum schools” for children “who had experienced hardship” to audition for the role of Loung Ung, from whose memoir the film is adapted.
Evgenia Peretz, the article’s author, wrote that the casting directors then “set up a game, disturbing in its realism: they put money on the table and asked the child to think of something she needed the money for, and then [for the child] to snatch it away. The director would pretend to catch the child, and the child would have to come up with a lie.”
“Srey Moch [the girl ultimately chosen for the part] was the only child that stared at the money for a very, very long time,” Jolie told Peretz. “When she was forced to give it back, she became overwhelmed with emotion. All these different things came flooding back.”
“When she was asked later what the money was for, she said her grandfather had died, and they didn’t have enough money for a nice funeral,” Jolie added.
In the interview Jolie also revealed that she was diagnosed last year with Bell’s palsy, which causes temporary paralysis of the facial muscles. Jolie credits acupuncture for helping her to recover from the condition, which had caused one side of her face to droop. “Sometimes women in families put themselves last, until it manifests itself in their own health,” she said of the illness.
Jolie also discussed the surgery she underwent after learning that she had a gene mutation that increases her risk of developing breast and ovarian cancer. In 2013 the actor underwent a double mastectomy and reconstructive surgery and later wrote about the experience for the New York Times. She has since had her ovaries removed, a decision she says she made after blood tests indicated she might have cancer. When Jolie learnt that she didn’t have cancer, she says, “I dropped to my knees. I went into the actual [ovarian] surgery happy as they come. I was skipping. Because at that point it was just preventative,” she said.
First They Killed My Father will be shown at the Toronto international film festival, and is expected to be released later this year.
Did you ever need money and think about taking a loan or withdrawal from your 401(k) account — but aren’t sure how to do so or if it’s ever a wise move?
You’ve got lots of company. Representatives who take calls for retirement plans say withdrawal and loan requests and related questions consume the biggest portion of their time.
But what it all boils down to when figuring if this is a good idea depends on what you’ll do with the money.
Most financial pundits say never take money from your 401(k) plan because you’re reducing funds you’ll need for retirement. Another good reason to avoid taking early withdrawals is that when you take money out, you’ll pay more income taxes and penalties than you would otherwise. It’s hard to argue against these reasons.
But if the measure of your financial health is your net worth (assets less debts), taking cash from your 401(k) plan to pay off debt has no immediate impact on that. Less money in your 401(k) is offset by less debt.
Look at this more closely. For example, let’s say the funds in your 401(k) plan have been earning a rate of return of 7 percent. But the debt you’re carrying is costing you 18 percent. In that case, taking money from your 401(k) to pay down 18 percent interest debt is the same as earning 11 percent (the difference between the 18 percent interest cost on the debt and the 7 percent earnings on the account).
Here is another example: Let’s say you want to buy a home, but you don’t have enough cash for the down payment to get a good mortgage. Your choices include:
Getting a nonconforming mortgage with a higher interest rate and mortgage insurance.
Waiting until you save the down payment and miss out on buying that home and possibly low mortgage interest rates.
Withdraw or borrow the cash from your 401(k) account and get the house with a low-rate mortgage.
In this case, the last choice might be the best.
The advantage of taking a loan from your 401(k) to purchase a primary residence is that it can be paid back over 15 years or over the term of the mortgage. The loan is qualified as a “principal residence loan,” and the interest paid qualifies as an itemized deduction as “qualified residence interest.”
If you instead take a “hardship withdrawal” from your 401(k), which is permitted for the purchase of a primary residence, then the amounts withdrawn are taxable as income and an additional 10 percent penalty tax is also applicable. Also, hardship withdrawals cannot be paid back into the 401(k) plan.
If your 401(k) plan allows you to take a loan, and you want to do it for one of the financial situations above, then do so. Unlike hardship withdrawals, amounts borrowed through a 401(k) plan loan aren’t taxable as income unless the balance goes unpaid.
An exception to this strategy is that individuals owning a 401(k) plan account with an employer for whom they no longer work typically cannot take a loan. Instead, they can transfer their 401(k) account to an IRA and then take hardship withdrawals that are free from the 10 percent tax, if the distributions are used for things like medical expenses allowed as an itemized deduction, qualified education expenses and qualified first-time homebuyers.
To properly report penalty-free withdrawals from an IRA, you’ll need to complete IRS form 5329.
But when you take a 401(k) loan and later can’t afford to repay it, the unpaid loan balance will become a taxable hardship withdrawal. Hardship withdrawals from retirement plans are typically allowed for things like uninsured medical expenses or to make mortgage payments to avoid foreclosure of their home.
Although those are truly hardship situations, these individuals are better advised to seek other forms of financial relief, rather than striping cash from their retirement plans. One reason is that under federal law, assets held in an employer’s retirement plan are excluded from the judgments for creditors during bankruptcy. Rather than spending down retirement assets, only to prolong the inevitable bankruptcy, it may be better to not touch these protected assets and get the bankruptcy process going sooner rather than later.
And since most states provide some exemption for your home, after bankruptcy you’ll still own that and your 401(k) account.
Also, low-income individuals (including those who suddenly find themselves unemployed) who face unexpected and large uninsured medical expenses may also qualify for a certain form of Medicaid benefits that consider primarily income. Pulling cash from retirement accounts in this situation may be unnecessary, and it may be better to get the Medicaid application process underway.
In both situations, your best move is to seek the counsel of a qualified attorney on the best course of action before you take a nickel from your 401(k) plan.