WhiteLove
5th July 2015, 17:53
The markets are quite unbalanced at the moment. The market is not expecting a rally on crude oil, oil is kind of weak overall. But traders find the markets are a bit shaky right now, so they have been moving a lot of their wealth to Gold and Silver, the Shanghai stock market crash and lack of momentum in the Berkshire stock are a few leading indicators behind these decisions.
Currencies are unstable, for instance if you have been living in an EU country and EUR is your currency, you have seen your wealth drop by -30% against the dollar in one and a half year simply by owning a low value currency and doing nothing about it. It is new times now, cash is a risky asset.
Large american corporations have new problems now, Walmart has lost -60 billion USD so far this year, their upcoming financial reports are not going to be pretty. To give you an idea of how much money Walmart has lost, it is what Ford Motor Company is worth! :silent:
Warren Buffett's Berkshire Hathaway business is also looking dim, once the rich exit their positions, that company is going to face some interesting new challenges.
To sum it up, there is no real momentum upwards right now. We are witnessing a market that is losing momentum. Insuring your wealth in commodities like Gold and Silver and strong currencies is probably a good idea. We might be witnessing the start of a bursting global financial bubble. Let's see, the upcoming month will show how serious it is.
And this is not the kind of climate when interest rates are going to be aggressively raised, that would burst the bubble.
Currencies are unstable, for instance if you have been living in an EU country and EUR is your currency, you have seen your wealth drop by -30% against the dollar in one and a half year simply by owning a low value currency and doing nothing about it. It is new times now, cash is a risky asset.
Large american corporations have new problems now, Walmart has lost -60 billion USD so far this year, their upcoming financial reports are not going to be pretty. To give you an idea of how much money Walmart has lost, it is what Ford Motor Company is worth! :silent:
Warren Buffett's Berkshire Hathaway business is also looking dim, once the rich exit their positions, that company is going to face some interesting new challenges.
To sum it up, there is no real momentum upwards right now. We are witnessing a market that is losing momentum. Insuring your wealth in commodities like Gold and Silver and strong currencies is probably a good idea. We might be witnessing the start of a bursting global financial bubble. Let's see, the upcoming month will show how serious it is.
And this is not the kind of climate when interest rates are going to be aggressively raised, that would burst the bubble.