There’s a strong chance that the US will never pay their debts back. In the past the only two ways a country would get out of such a mess is by strongly devaluing their currency. Such a move would end the US’s economic dominance. None of these outcomes is particularly good for anyone.
Donald Trump’s long promised tax cuts finally passed. By reducing the corporate tax rate from 35% to 21%, Trump hopes to encourage US firms to repatriate capital and invest it at home. Tax cuts appease the right wing. Increased jobs and wages appease the working class. Everyone wins, right?
Earlier this week, Japanese stock market index Nikkei 225 saw their stocks decrease by 0.15%. What caused the drop?
There’s still a shaky feeling around the global economy, as people worry what years of money printing and low interest rates have done. But that’s precisely why interest rates have to rise. And soon…
After going sideways for five months, the Aussie market has been on a tear lately. At the same time, our largest trading partner, China, has been in the news — and not all of it is for positive reasons.
This morning G8 Education Ltd [ASX:GEM], a listed early childcare provider, climbed 3.2% to $3.89 per share. What happened to G8 Education share price?
US politics is not looking like it’s going to be a beacon of calm over the rest of the Trump presidency. And the massive US debt ceiling problem is not going away. Such volatility usually triggers more investment into safe haven assets. To my mind Gold could be the big winner in the short term.
It’s OK to be wrong in the market. After all, we’re trying to predict the future here. But, it’s not OK to keep being wrong in the face of overwhelming evidence to the contrary.
You know what to expect from the RBA this afternoon? Noise to talk down the Aussie dollar. Most importantly settle for the back-pedal from the central bank.
Consumer price inflation for the June quarter, will be an important number for the market. It will give you an idea of when an interest rate rise is coming.