Currency
After reading essays from political and financial pundits and looking at market charts, “Greece will be contained” seems to be the consensus conclusion following Samaras’ defeat — that no matter what happens in Greece, the ECB can and will purchase European sovereign debt; Greek stocks are a buy; Even the most dire outlooks have Greece exiting the Eurozone with grace.
Yet again, I am afraid that the financial elite have misunderstood social mood and the impact of chronic underconfidence….
The BRIC grouping of Brazil, Russia,India and China has never looked so disunited to stock investors.
While Chinese and Indian benchmark equity indexes have surged an average 40 percent this year, Russian and Brazilian gauges posted a mean drop of 4.2 percent. The annual divergence is on pace for the biggest since economist Jim O’Neill coined the term in 2001, leaving the combined market capitalization of Chinese and Indian equities $5.2 trillion larger than that of Russia and Brazil, according to data compiled by Bloomberg……
In what could be described as a rather stunning move, the Swiss National Bank (SNB) has decided to cut the interest rate on sight deposits at the SNB into negative territory. This move was necessary to defend the currency against renewed speculative positions which pushed the EUR/CHF exchange rate down again, thus increasing the pressure on the Swiss economy. As the volatility on the financial markets moved up, market participants were once again running towards the Swiss Franc as it’s still considered to be one of the few ‘safe haven’ currencies out there….
Identifying over-arching trends is integral to successful fundamental investing. The folks at Visual Capitalist created a fascinating breakdown of some of the key macro-trends of the past year. “Motif investing enables you to invest in the world around you…….”
Of all the educational ideas a trader can learn, the “falling safe” concept is among the most valuable.
A falling safe can either crush you… or present you with a trading bonanza.
We’ll start this simple, but valuable, lesson with a chart…
This is a chart of crude oil from early 2007 through late 2008. See that huge, sharp decline on the right-hand side? That’s a market in crash mode. Some traders call this kind of move a “falling knife” or a “falling safe.”….. CLICK HERE for the complete article
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