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Saturday, 28 November 14:38 (GMT -05:00)

Stock and commodities markets

Nouriel Roubini Says Global Economy Is Going Down To 2008 Crisis

The global economy is gradually moving from a weak growth to slowdown. This is going to drop down the prices on risky assets all around the globe, including commodities, stocks and bonds. This what Nouriel Roubini, Chairman of Roubini Global Economics and Professor at New York University thinks on the matter.




He says that everyone seems to be concerned about whether we are back to the 20008 crisis. The answer is “No, we are not”.  Still, the latest storm seen in financial markets seems to be the most volatile in history. At the same time, this is the biggest sellout since 2009. This is due to the fact that there are at least 7 major sources of global risks.
Mr. Roubini is convinced that there are at least 7 major sources of global risk at this point while over the past years there used to be one one or another source of such risks at a time – the Eurozone crisis, the market hysteria of the Fed’s plans to start raising interest rate, possible Brexit, China’s hard economic landing and so much more…
First off, it is all about concerns over China's hard landing. The thing is, China is the world’s second biggest economy, which is why it cannot but affect other economies and international stock markets. China keeps on seeing its economy slowing down amid a flight of capital. 
Secondly, a lot of emerging markets are facing major challenges in the form of macroeconomic imbalances, budget deficits, growing inflation, devaluing national currencies, and economic slowdowns. Most of those countries have still failed to implement all the necessary structural reforms. In the meantime, devaluing currencies make their dollar debts even more expensive than ever.
Thirdly, the Fed might have mistaken when putting an end to the policy of zero interest rates. Lower inflation (caused by lower oil prices), economic slowdown, tougher financial conditions (due to a stronger dollar, weaker stock markets, and wider credit spreads) are now threatening the U.S. economic growth and inflation expectations.
The forth factor to keep in mind is, multiple geopolitical threats start reaching the boiling point. As usual, the Middle East brings us more and more uncertainty, especially amid the possibility of a long-term cold war between local states – for example, Saudi Arabia and Iran.
Number 5 is all about oil prices, which are going down and affecting many of the stock markets out there, simultaneously driving credit spreads higher, not to mention oil-exporting economies around the globe.
The 6th challenge to consider is crisis in the banking sector. Banks all around the world are seeing their profits going down amid bad debts, unfavorable legislation, risky business models, negative interest rate policies and so on.
And finally, the Eurozone may turn into the epicenter of a major financial hurricane this year. European banks have a lot of problems to solve. At the same time, migration crisis may trigger more challenges, including the disintegration of the Schengen Area and the dismissal of Merkel’s government.
At the same time, Great Britain may quit the European Union. The Brexit referendum is planned for late June 2016. This may provoke the domino effect. For instance, Greece also starts confronting the lenders, which may result in a Grexit. All in all, Europe’s integrity is in jeopardy. The situation in Ukraine is still unstable.
The bottom line is, 7 major problems plus extra ones may seriously affect the world in the future. They make the global economy slow down. Eventually, riskier assets are going to lose value since few investors are going to stay interested in them. While those risk are real, Mr. Roubini says that even if there is a major crisis, those 7 factors may take some time to escalate and trigger a crisis. That’s why he doesn’t expect something like that this year. Well, that remains to be seen…


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Goldman Sachs is back in the game

20 years ago, Goldman Sachs used to be a Wall Street legend and a dream company to work for graduates with a financial degree. Over the last few years, the bank has been a loser with thousands of disappointed employees, managers, and investors. However, the other day Goldman Sachs made an attempt to get back in the game.

Publication date: 16 October 01:17 PM

European ETFs - Decent Alternative to American ETFs

The mentioned PRIIP rules are forcing the financial service providers and brokers to publish a specific set of info documents including the so-called KID with the key info on certain investment and insurance products. Since the funds coming from outside of Europe do not conform to these requirements, they cannot be offered to EU residents as investment products.
Publication date: 19 September 01:48 AM

Warren Buffett Keeps Loading Up On Bank of America's Stock

Berkshire Hathaway keeps loading up on Bank of America's stock. This time, during the period of July 31st - August 4th, they purchased over 13,6 million shares, which cost 337 million dollars. The average prices was 24,81 dollars per share. With that being said, Berkshire Hathaway now owns 1,03 billion shares of the stock, which is 26,15 billion dollars in dollar terms. As for the Federal Reserve, they agreed to increase the fund's share to 24,9%.

Publication date: 12 August 01:39 AM

WTI Price Drops After US Oil Inventories Report

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Publication date: 03 June 12:21 PM

Is Gold Worth Investing Amid Crisis?

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Publication date: 14 April 02:09 AM

Remember the Key Rules of Investing in Stocks

Without further ado, let's consider a bunch of principles of investing in stock, which will put the odds of succeeding in this business in your favor:

Publication date: 11 March 01:14 AM

Apple Patents iPhone Without Ports And Holes, Device Expected In 2021

It seems that the release of the long-awaited iPhone without any ports or holes is getting more and more portable. Apple has always favored minimalistic designs, especially over the last 5 years. In 2015, almost all of the classic ports were deprecated in MacBooks in favor of a single one - USB-C Thunderbolt 3. In 2017, iPhone 7 got rid of the 3.5mm audio jack.

Publication date: 05 March 08:20 AM

Gold Sets New Records

The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.

Publication date: 14 January 01:23 AM

Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM