Posted tagged ‘markets’

Emerging Market Stock Funds Healthier than Ever

July 24, 2009

Improving sentiment in the state of the US export market is having a great effect on emerging markets.  Investors are pouring into the emerging market, and last week saw the best figures since mid June.

Nations such as China, Peru and Sri Lanka saw some of the best results in funds while the BRIC nations are showing growing signs of strength thanks to the slow recovery of established economies.

Emerging market equity funds drew around £1.6 billion last week alone and since the start of the year investors have been flowing around £20 billion into emerging market stock funds.


Traders Tricks to Stay on Top

July 8, 2009

How Not to Lose Money.  Or, How To Be a Successful Trader.  There are so many versions of this, so many books and articles written, all trying to give the best advice on how to be a good investment trader.  Many are merely trying to sell a product, others are telling first-hand stories of wins….and losses.

The truth is, there is no guaranteed way to make returns.  The only thing you can do is arm yourself with as many tools and as much knowledge as you can.  It may seem frustrating that there isn’t a sure-fire way to make big wins, but most traders will tell you stories of both sides of the scale, and many will say that the best thing to do overall is to:

– stay in control – only invest as much as you can afford to lose

– don’t get carried away by the ‘game’ – addiction is a real risk

do the research. This is the area that most will tell you is ultra important.  An educated trader can analyse the market and stands a better chance

– be proactive.  Don’t expect your broker or dealer to come up with the answers for you

– it is your money.  use it wisely!

– every trader risks losing all capital (plus additional funds)

– there are no guarantees

Keep some of these points in hand.  They are correlated from the advice-givers, from personal stories, from hard experience.  If you want to make money, you have to work at it – that seems to be a general view!

Oil Down….Again..

July 8, 2009

Oil prices have hit six-week lows and a barrel is now worth $62.30, down 63 cents.  Now, the question is: is there a general increase in caution in the trading community?  Is everyone worried about what is happening in the global recovery that we were all beginning to see?

Things are getting confusing again.  Ok, so let’s do a quick round-up:

  • Oil prices have risen steadily and (fairly) quickly since the start of 2009
  • The general mood of late has been of ‘bottoming out’ of the recession – things can only get better
  • Overall good news from industry sectors as demand and production increased
  • ‘Green shoots’ becomes the word du jour again
  • V-shaped is the shape of the recession, say analysts
  • Business sentiment is up in the UK and Europe

Things were definitely looking up, weren’t they?  But, now the USA as the world’s most powerful economy, has put a couple of spanners into the works – 1. the latest unemployment figures were worse than expected and 2. fresh fiscal stimulus is being speculated over

Over in the UK, the BoE is planning new asset purchasing and Alistair Darling is going to announce the new FSA guidelines for the financial sector – set to be much stricter.

So is there an overall “down” mood or is the recession more W than V?  Some are saying that the dip in oil price is merely a correction on the too-early recent rally.

Stick with risk or head to the havens?  That is the most important question for investors right now!  Commodity traders are reminding us that while oil is down, precious metals are remaining consistent!

Commodities Under Pressure

July 6, 2009

What’s in your portfolio?

And what are your thoughts on commodities?  According to a new survey there is still relatively low allocation for this form of investment.  This may surprise newcomers given the size and dominance of the oil market,  but indeed as an asset class commodities are low on the scale.

There are differing reasons for this, including the fact that it is relatively new as an investment tool for financial investors.  Up until around a decade ago, commodities were for producers and consumers.  Therefore, their benefits are still being tested and tried for diversification.

Some believe that the risk premium to commdotities is medium and not ideal.  But many institutions (including Deutsche Bank AG) are exploring the possibilities and even plan to launch new indices that can benefit even from anomalies.

Global Stocks Up, Executive Sentiment Up

May 29, 2009

2008 was the year of extremes in the oil market.  In Summer things were soaring, couldn’t stop getting better – the price of a barrel of oil was over $147.

Then September arrived.  The world tumbled down and further down into the downturn, and oil was hit too.  A barrel was worth a mere $30.  OPEC, the main global oil cartel, decided to make production cuts in order to buoy prices.  It worked, and at yesterday’s meeting in Vienna, they decided not to make further cuts – there had been three since September.

Good news then!  If OPEC don’t need to make cuts, and oil is rising steadily then things are beginning to look up aren’t they?

In the Euro‘s 16 nations, things seem to be picking up too.  An index there has shown that executive and consumer confidence is up to a six-month high.  Manufacture is up too and overall global stocks are at a six-month high too.

Calm down though.  We’re still contracting.  Just not quite as much or as fast as before.

Pound Hits 23-Year Low

January 22, 2009

Things have not started well for the UK currency this year….it has now reached its lowest point against the dollar in 23 years. Many are worried about the state of the UK economy, but is it really worth panicking?  After all, the figures are no worse than was forecast by the government in November.  And even if using public money goes up a large amount, the figures still wouldn’t exceed their projected levels.

So why is everyone freaking out so much?  One investor even said the City is “finished” and that the UK has nothing to sell anymore….is that really the case – is the UK the next Iceland?  Opinions are divided, and many are calling for the FSA to revise its decision to lift the ban on short-selling.  Many are blaming this practise on the spreading fear over the banking sector.  The City minister has even had to calm down the public via the Financial Times, by saying the government does not intend to nationalise the banks.

Mad times indeed but don’t forget to look at cold hard facts and try not to get caught up in the various theories and ideas.  Maybe to buy currency right now would be something to consider carefully…

News source: