World Markets

  • Global Economy
  • With so much wealth created in world markets every day, why limit your focus to Australia?

    No longer do you have to be restricted to Australia’s dominant industries of natural resources and finance. And online brokers have made accessing overseas stocks incredibly easy.

    Think of the potential for your wealth. You can find the best tech companies in the US. There’s the biggest brands with global markets Europe has to offer. You can tap into companies profiting from China’s emerging middle class. You can make money from offshore oil plays in Brazil and East Africa.

    Globally, there’s an amazing amount of opportunities you can profit from. And don’t forget that the periodic upheavals around the world offer fire sale real estate opportunities. Read on to see the potential…

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    global market sentiment is uncertain
    Ghosts of Crashes Past
    There is a lack of certainty about where the market will move next, and past crashes are fresh in investors’ minds. This anxiousness is reflected by the recent spikes in the CBOE Volatility Index (VIX) or, as many rightfully call it, the ‘fear index’.
    Finding Out the Truth about Stocks
    Australian investors often lament the performance of our market. They look at other markets and wonder why ours can’t be the same. We all know that financial stocks dominate the Australian market (around 40%). That the Big Four banks account for about 30% of the index. Remember, an index simply reflects the stocks that are in it. However, while that profit was 8% higher than the previous year, revenue hardly budged an inch.
    China Could Wreak Havoc on Stocks Everywhere
    It’s still not clear if China will start selling US bonds. In fact, it could be that China can’t help but buy more US bonds. So what can you do if the second largest US bond holder goes haywire? Reduce losses as much as possible. It’s probably one of, if not the most important rules when investing.
    Selling Cryptocurrencies and Buying Stocks
    Cryptocurrencies are a terrible investment, in my view. They are difficult to buy, attacked by governments and hackers worldwide, and in a major downtrend. So, with too many risks to worry about, I suggest sticking to the stock market. That’s where you can sleep at night, while making potentially massive gains during the day.
    Stock market graph
    This Bull Run Still Has Legs to Run
    Stock markets can be volatile. You’ve been reminded of that over the last week. It’s led some to make sweeping statements about a market crash. Just keep a couple of things in mind when reading such analysis. One, the US economy remains strong.
    investment industry giving dumb advice
    The Dumbest Things the Investment Industry Says
    At what point do you panic? After the stock market has lost half its value or before your capital is cut off at the knees? The events of last week are certain to have more investors asking themselves that question. Do we reduce our weightings and retreat to a place of safety? The industry has a readymade answer for that one…buy the dip.
    Biggest Bubble Ever Meets Biggest Pin
    The markets were noisy yesterday. A third day of wildly gyrating prices left stocks and bonds in retreat…as the financial press shouted out its outsized fears…and its calming little lies.
    market volatility
    Why Market Volatility Will Continue to Rear Its Head
    If you follow the trail, it would seem that the share market rout this past week stems from one piece of data. The market took last week’s wage growth data as evidence that things might finally be turning around. An increase in their paycheques means that consumers can spend more, putting more money into the economy. However, it also has other ramifications.
    stock plunge
    What’s REALLY Behind Yesterday’s Stock Plunge
    The classic part is the plunge in stocks. That is bound to happen. Everybody knows it. And your average investor says he is ready for it. He will ‘buy the dip’…and profit from the big rebound. The not-so-classic part is the more fascinating drama. And here is where we introduce our tragic heroine.
    stock market and possible war breakout in the middle east
    Here’s the Real Problem with the Stock Market
    Remember, the stock market went straight up for two years. Banks and institutions under-priced risk for months. To account for the ‘extra’ uncertainty, they needed to sell some shares to rebalance their portfolios. The Dow jumped 569 points last night, closing at 24,915 points. It may appear that the correction is over. But the volatility could just be starting, especially if war breaks out in the Middle East.
    US market falls are no cause for concern
    Why the US Market Fall Is Just Noise
    Overnight, the US market threw a tantrum. Both the Dow Jones and the S&P 500 did the unthinkable, falling 4.6% and 4.1% respectively. This is important to note. But there’s no need to overreact to this. Instead, watch and learn what’s driving US market movements. While the Aussie market may head down in the interim, I don’t believe there’s much cause for alarm.
    global economy crash imminent
    The Global Economic Cycle: Speculation, Capitulation, Ruination
    At present, we’re experiencing only a half of a market cycle…the ‘up’ half. When this cycle makes a full rotation — through the ‘down’ half — don’t be surprised to see the Dow back to levels first reached in 1995. ‘Impossible. Madness. Not going to happen.’ That’s not what history repeatedly tells us.
    bond markets are important for investors to watch
    Why Stock Investors Need to Watch Bond Markets
    One asset class that many investors are less familiar with is bonds. They are something that you are unlikely to see quoted anywhere — often not even in a finance report. The thing about bonds is that they matter a great deal to the stock market. And much of that has to do with the size of this asset class.
    markets around the world are growing
    It’s Midnight and the Market is Doing Shots
    Imagine the market was like a party approaching midnight. When the party is in full swing and the tequila is brought out, it’s usually to the tune of roaring approval. But as an investor, it’s time to get going. The party can go on much longer than any one realises. But the question is, do you really want to be drinking tequila after midnight?
    markets falling by 50%
    Markets Set to Fall 50% by 2019
    Since 2009 we’ve had a long-term process of money printing that has driven up asset prices and kept interest rates at record lows. In turn, this has created record setting stock markets and property price bubbles. Though if markets don’t slow down or correct by the end of 2018, the 2019 crash could be far worse.