The thing about valuations is that they don’t matter until they do. What do I mean by that? In the midst of a bull market, investors ignore valuations in the belief that earnings will rise in the future and therefore justify today’s higher values.
The general rule is high interest rates slow an economy and low interest rates speed it up. China’s priority is the latter. They want to grow and keep growing at rates like 6.5%.
It all started back in 2006. A group of engineers had a great idea for a new business. Demand for video streaming was going to be HUGE, they thought. Not only would we all be streaming content, a lot more video content will run right to our mobile screens.
The Paris Agreement also asks developed countries to contribute to a fund to help developing nations with climate change. The fund is meant to raise an astounding $100 billion a year, but that doesn’t seem likely.
Over the past few months I’ve often brought up the performance of emerging markets in 2018 and how they are a sharp contrast to the performance of US stocks.
The US Federal Reserve lifted interest rates on Wednesday. Normally this would be a sign of a stronger US economy. But with such debt levels and dependence on liquidity, many argue it’s far too soon to be ripping the Band-Aid off just yet.
Yes, the markets could crash. That’s why we have exit stops. It’s also why spreading risk is so important. These strategies aim to protect you from the worst scenarios. I believe the biggest risk is to avoid the market completely.
We’ve dodged the bullet this year. But we may want to start preparing for a crisis sometime between 2019 and 2021. Even one of the world’s most successful hedge fund managers, Ray Dalio, is getting ready.
I wanted to share that, and comment on it. And if you’re at all interested in learning more about these scenarios I’m going to touch on, I’d highly recommend reading John Adam’s full article.
This month the price of uranium reached US$27.30 a pound. Historically speaking, uranium prices have proved fickle, from its peak to trough range of US$143 May 2007 to US$7.10 in December 2000 respectively.The spot price of uranium remained relatively volatile throughout this year.