Archive for May, 2010
Next Entries »Global Slowdown Threatens Markets!
Friday, May 14th, 2010In this era of globalization, the reliance on the inter-connectivity of markets has induced what is known as the “butterfly effect”. That is, when something happens in one area of the world, it has the potential to pervade and send shock waves throughout the rest of the world. And this is where we are today. [...]
Expand or Contract?
Thursday, May 13th, 2010Many countries and economies around the globe are facing record budget deficits and there is much debate as to whether it is better to expand or contract these deficits. On the one hand, reducing deficits improves balance sheets and makes debt easier to service, but on the other hand it brings fear of the dreaded [...]
Not Dead Yet!
Wednesday, May 12th, 2010So we know all about the debt crisis in the Euro zone and the bailout agreement that was put forth, leaving some in the market to wonder whether or not it was “enough” and to question the structural feasibility of the Euro. The major question is whether or not the PIIGS countries (particularly Greece) will [...]
Dumb Markets!
Tuesday, May 11th, 2010Yesterday we saw the markets come back with a vengeance as both stocks and risk assets traded higher. The obvious driver of these moves was the EU bailout, but as I mentioned yesterday, the bailouts are going to be negative for the Euro in the long-term. It didn’t take the markets long to realize this, [...]
Opa!
Monday, May 10th, 2010Let the party continue… Greece lives to party another day, as does the rest of the Euro zone! Over the weekend, the EU finally came to the rescue of the faltering nations of the region by putting together a nearly $1 Trillion (yes that’s trillion with a ‘T’) rescue package to stabilize the Euro and [...]
A Recipe for Disaster!
Friday, May 7th, 2010With concerns over the Euro and the Greek debt crisis, yesterday’s market action became the “perfect storm” as there was a systematic breakdown in trading technology which sent the markets reeling. The Dow Jones Industrial Average dropped nearly 800 points in less than 10 minutes. There were major moves in the currency market as well, [...]
Sell in May, Go Away!
Wednesday, May 5th, 2010“Sell in May, Go Away” is an old Wall St. adage that seems to be proving why it has become a popular investing strategy over the course of time. I can’t think of a time when it has been more prescient; in light of the market sell-offs taking place. Yesterday, world stock markets sold off [...]
Rate Hike!
Tuesday, May 4th, 2010The RBA increased the interest rate in Australia as expected to 4.5%. However, dovish language for future hikes has sent the Aussie lower as rate hikes were fully priced in. Risk aversion is compounding the Aussie’s decline as continued fears out of the Euro zone have sent markets lower. The Euro has breached the 1.31 [...]
What a Mess!
Monday, May 3rd, 2010The impact of the gigantic oil spill in the Gulf region of the US is impacting oil prices to the upside as traders are actually using potential supply and demand issues to rule their decision-making. Well actually, it’s more like never let a good crisis go to waste. In the Euro zone, the potential for [...]
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