Stock Market
Stock Market
boom economies
A Double Boom Coming
boom economiesThe proviso of this thesis though was that there needed to be ‘an India’ to take up the slack left by China as it stalls. But what if the current slowdown is the bust? And what if China, instead of crashing, recovers and booms over the next few years? A double boost to the global economy, from the two most populous nations in the world.
Watch These Charts to Read the US Economy
US economy growthThere’s plenty of momentum to come from the US housing market. This is important because it will drive the US economy. And yet this process is widely underappreciated in the mainstream media. Hence why there’s a persistent sense that the US is close to a recession. I don’t see that happening in the immediate future. The charts aren’t suggesting it.
The Computers Are in Charge of Investment Decisions
investing and computer analysing the marketsComputers don’t worry about rationale. They just do what they’re programmed to do, which eventually exacerbates the prevailing trends. But don’t forget, humans program the computers. Human nature is behind all market cycles. It’s just that this cycle is being helped along by the desire to make gains based on unemotional computer generated decisions.
The Cycle of Markets and Human Nature
markets and human nature cyclesWhile you never know what the future holds, you can plan and prepare for more likely outcomes than others. That is, you can try and increase your probability of being right. So starting the year with an expectation that the market could endure a correction of 10–20% at some stage is, I think, a sound and reasonable expectation.
Never Seen Anything Like It
speculative investmentsIn the 1990s, speculators flocked to the biggest speculative opportunity they had seen in their lifetime — tech stocks. As it happens, right now, folks are calling the top of another great speculative market — cryptocurrencies. If some of my colleagues are to be believed, this is the biggest speculative boom, not just of our lifetime but of all lifetimes.