Get Markets Right

Dramatic times, but maybe we can see the first considerations about how bad it will be. In FX it’s likely that BOJ will be active and equities are set for a rebound.

This week, the hot topic focus on Hedge Funds as they deleverage, but how much and how long time?

Read more about all the interesting happenings in the financial markets in the outlook here below. I hope you find it interesting to read my private view about the consequences for the stock markets, currencies, China and what to expect from the central banks.

Global equities:

Nikkei 225 (7.163) Topix (747) Dax (4.187) FTSE 100 (3.704) Dow Jones (8.378) S&P 500 (877) Nasdaq Comp (1.552)

Several of the targets were reached surprisingly…

The first hedge fund was launched by Mr. Alfred Winslow Jones in 1949 – but is it all over after 60 years, when the last dime will be withdrawn next year?

The answer is of course no and the industry will continue to exist, but as the French finance minister Ms. Christine Largarde very wisely explained last week, is the financial world still deleveraging.  

Hedge funds have been a key driver behind leveraged gains in different asset classes. This makes the sector a natural force in the current “deleveraging period”. In the ongoing attempt to look into the crystal bowl I choose to check out on hedge funds as these people currently are key drivers in the market.

Depending on the…

The wild days continue, though with a relief feeling among some investors. It’s too early to feel relief about anything at all. The true crisis is spreading – recession and countries with large external debt will feel the pain.

The US stock market is so important these days so it’s simply this weeks “Hot Topic” which you will find further below.

Read more about all the interesting happenings in the financial markets in the outlook here below. I hope you find it interesting to read my private view about the consequences for the stock markets, currencies plus China.

Currency markets:

EUR/USD (1,3305): The Euro is clearly offered again and the stop loss in EUR/USD was reached again. In the currency market US fundamentals doesn’t hurt…

Dow Jones (8885)  S&P 500 (944)  Nasdaq Comp (1711)

Why do I choose a market that I cover every week as this weeks “Hot Topic”? The equity markets around the globe have during the past months dominated all other markets, and last week proofed that swings in US stocks dominate equity markets globally. It’s fair to expect that US will loose dominance in the financial world but right now it’s not the case. I decided to give the US stock market a reality check by exchanging more views with you than normal regarding this subject.

As mentioned last week, a rebound would be a good guess after such steep falls lately. Rebounds are natural, and the P/E values, they look so low. On…

One observation I think it’s very important to have an opinion about, is what crisis is the driver behind the market moves as it will decide your risk considerations and decisions. I have my clear view on this and the consequences which you will find in the comments. Please go down the “Hot Topic” to read more.

Read more about all the interesting happenings in the financial markets in the outlook here below. I hope you find it interesting to read my private view about the consequences for the stock markets, currencies, China and what to expect from the central banks.

Equities

Global comment:

These comments are mainly regarding what we can expect from the markets in the future. Though I think it’s…

Hot Topic – which crisis is the leading crisis ?

This week I start with the “Hot Topic” again, as depending on what you regard as the primary driver behind the crisis it will determine how your mid term risk assessment should be.

Many media reports and politicians speak about the financial crisis as being the reason for a slowdown in global growth. No doubt that a crisis among financial institutions has a negative impact on economies in general. But I argue that the financial crisis is caused by a global slowdown that started in USA for more than 2½ years ago, and by a busting global real estate bubble.

For 2 ½ years ago some smelled that the US housing market was turning sour,…

I early July some predicted that the markets would go up, but the trend is clear – down. Will it ever end? Yes, one day, but not yet. It’s difficult times, but the worst is that it is pretty late many realizes how bad the situation is, meaning there are still some stops to be taken out.

Read more about all the interesting happenings in the financial markets in the outlook here below. I hope you find it interesting to read my private view about the consequences for the stock markets, currencies, China and what to expect from the central banks.

Hot Topic – what’s going on and where will it all end ?

The Hot Topic was thought to cover…