With reporting season kicking off today, cue the usual brouhaha over how much those greedy bankers are getting. But maybe it’s worth pausing a moment to take a lesson or two from the world of high finance.
WHEN people think about trading, many things come to mind. Some will think of huge amounts of cash and massive gains. This may be accurate in some cases, but today I would like to break things down and tell you about the harsh reality.
I simply can’t resist the temptation to draw parallels between markets and the autumn storms in the UK last week. The tempest is back. Yes, it was a quiet summer, with volatility in equity, FX and bond markets dropping to multi-year lows.
RISK off is an old concept, but it has recently started to re-emerge on the back of stock markets declining slightly more than people had been expecting. It’s a term used when people opt for safety over potential returns.
TRADERS often rush into trades thinking that trading is like any other job, where you always need to be busy, independent of whether the task is of high or low value. Applying this mindset to trading is not necessary and can be harmful.
It seems as if the European Central Bank (ECB) has been debating whether to head down the QE path forever. ECB-watchers have been reduced to pondering what the shade of Mario Draghi’s (usually blue) tie might mean for future asset purchases.
Mining firms have put on a brave face over the past 18 months. I warned last year that the super-cycle had popped, despite the largesse still being exhibited by the industry in the mining hub of Perth.
In a world where we are sold pups on a daily basis by both policymakers and the market snake-oil salesmen, yesterday’s Bank Holiday trading on the Continent was a great example of how we continue to lap up the nonsense we are fed.
There is a question mark looming over European equities – when will companies deliver on earnings? So far, underwhelming earnings growth has done little to support the market’s upward march. In our view, that is poised to change.
It's been a hot summer for some, with US stock markets breaking out to fresh highs in July, and European investors debating whether to dip a toe in the water on the back of more European Central Bank (ECB) action.
THE BIGGEST point markets are making at the moment is that they aren’t making a big point. Given increased tensions around Russia and Ukraine, we are closer to war in Europe than we have been for a long time.
The new Isa (Nisa) is a day old and, despite speculation that a rush of investor funds could wobble providers’ systems, savers shouldn’t be deterred from making the most of the enhanced benefits of the liberalised tax wrapper.
THE DAYS when we would experience broad-based US dollar gains or sell-offs are long gone. With forex volatility reaching new lows, traders need to adapt and turn picky when choosing which currencies to trade.