With unprecedented volatility in the financial markets that’s been brought on by the international spread of coronavirus, and the economic backlash associated with it, is potential systemic risk to the global financial system lurking ‘out there’ in an obscure and often little understood investing vehicle (even for its buyers)… DERIVATIVES! Back in 2015, then reposted […]
Summary: Whether we work in real estate, on Wall Street or maybe in the manufacture of widgets… What is the potential impact on global financial stability from a yes vote next week for Brexit? On June 23, 2016 Britain will be holding a referendum that will decide whether or not the country will remain in […]
In mid-December 2015, and for the first-time in about eight years, the Janet Yellen-led Federal Reserve raised short-term rates .25%! In a normal financial, political and economic environment one would therefore assume that the economy is in strong enough to warrant a rate hike and that inflation is at or very close to the Fed’s target rate. […]
Will These Denizens Of The Investing Arena Prove To Be Right Or Wrong At The End Of 2016? In an interesting follow-up to an article yesterday that described some of the risks inherent from following the herd, or Wall Street pros (‘Historic Look At Following The Herd Or Worse, The ‘Experts’, When Investing!‘), today we offer […]
Summary: Real estate and stocks have been doing very well but… Economics 101 says we should have inflation after the amount of money the Federal Reserve has put into the system! But we don’t and this article explains why… The global central banks have injected many trillions of dollars into their given economies looking for […]
The pundits on TV have all glommed onto the common argument that declining crude oil prices are responsible for declining stock prices! I, however, am of the opinion that declining crude coupled with the overall decline in the CRB, are merely symptomatic of a greater potential problem. That is the real possibility for the US economy […]
By definition a bear market in stocks will impact a great many industries away from just banking and finance! So that said, is the recent stock market angst simply a one-off as some might suggest, particularly given the 390-point move to the upside in the DJIA today. Or was the move today nothing but a […]
After an 8.5% drop in the Shanghai Composite Index stock markets around the world recoiled in sympathy! But why, you may be asking, is the world so afraid of the goings on in China? Because while the communist nation has a quasi-capitalist economy, there’s a great deal of difference between here and there when you […]
Back on April 17, 2015 I wrote an article here titled ‘What a stock market top might look like!‘ And while hindsight is 20-20 and the stock market is currently suffering through some difficult days, at the time of the above mentioned article the chart of the S&P appeared (at least to me) to be […]
Anyone watching on the afternoon that Amazon reported earnings saw an immediate jump of about 20% in its share price! The euphoria (+$40 billion in market cap) was due to a small reported profit when a loss had been expected along with the performance of the company’s cloud computing division. The stock of Amazon.com had closed […]
