Guest Post : By Green
When the going gets tough, the tough get buying. The tweaked version of that hard-worn phrase could be an accurate way of describing some of those shrewd investors who buy shares in a downturn in the hope or belief that they will bounce back. Great successes can be achieved in this way. However, what do you do when the markets are on an upturn as the global indexes have signaled for close to five years in a row? Even when the studious foresee a continued momentum, there is a natural trepidation that the glass ceiling may suddenly bounce that trajectory.
Continue reading “The State of Play: Stocks and Shares”
In financial markets, craziness creates opportunity. It affects only prices, not values. And one of the craziest afflictions I know of is our faith in our ability to see the future. Indeed, there isn’t even an appropriate opposite to the word ‘foresight’ in the English language. So I’m going to make one up. And rather than build a portfolio based on the pretence we have foresight, let’s explore some ideas for building one that is robust to our fore-blindness.
Here are some things I think are true:
I always like to be bullish on things but you cannot avoid he ground realities and say bullish. The Europe’s politicians join a chorus of policy-makers across the globe pushing for devaluations to fight for market share we can expect currency conflicts.
The telegraph reported – “Jean-Claude Juncker, EuroGroup chief, has signaled that Europe is no longer willing to be the last economic player holding the toxic parcel of an over-valued exchange rate, describing the euro as “dangerously high” after its three-month surge against the dollar, yuan and yen. Continue reading “The Currency war is on”
From the financial theory to practice Rahuram Rajan the chief economic adviser of India. Mr Rajan is even more of a free-market man than Mr Basu. Fault Linesattacks state subsidies of housing finance as well as Wall Street. He has been vocal about India’s troubles.
Fault lines by Rahuram Rajan is the extraction of so many journals published him. The book paints a larger picture on the distributional issues in the income and strata of society, Continue reading “FAULT LINES : By The chief economic adviser to the Government of India”
There is a terrible irony in export-dependent nations being viewed as “safe havens.” Their safe haven status pushes their currencies higher, which then crushes their export sector, which then weakens their entire economy and stability, undermining the very factors that created their safe haven status.
As long as Germany stays within the Eurozone, Japan is the primary example of this dynamic. Should Germany leave the euro and return to its own currency, it too will begin orbiting Continue reading “Export Lead Economies & trouble in domestic currencies”