The 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.
There’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.
Computers 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.
Small-caps have the potential for huge growth. The kind of growth that most large companies can only dream about. Triple-figure percentage gains. Sometimes more. So how are small-caps so potentially profitable?
Retail Food Group owns various franchises, such as: Crust Pizza, Donut King, Brumby’s Bakery and many others. Yet despite what would seem like a recession proof stock, RFG was one of the worst performers in 2017. And their start in 2018 hasn’t been much better.
While 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.
In 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.
Dotz Nano Ltd [ASX:DTZ] shares are up 24% in early trade today. The upswing comes after the company announced it had agreed to a distribution deal in China.
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.
China's President has called it ‘the project of the century.’ The initiative is motivated by a desire to boost economic growth in both China and nearby countries. This will provide a growing market for trade. It’s the largest overseas investment plan ever launched by a single country.