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Archive for October, 2016

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Posted On 21  Oct  2016  

Market impact of US election results

October 22, 2016 It is time to prepare for the increased volatility in financial markets which will results as we approach and go through the US elections. A rise in volatility these days implies a higher USD, higher JPY, and higher Gold. The biggest impact on the markets will be on the day of the election results as the polls and actual vote count start to trickle in. Here is our assessment how markets might react depending on who wins. Please note that these are not long term predictions. Only a possible scenario as to what might happen on the day of elections and how then the future might transpire. In real life one has to act according to the unfolding of actual events. These observations should not in any way be construed as advice. Market Hillary Clinton Donald Trump Possible reasons US Dollar Up Down Trump is anti-trade and

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Posted On 16  Oct  2016  

Mrs. May’s Little Britain

I have just returned from London after three weeks. Things are not looking so good. The disunited Kingdom, this island is a conglomerate of union of nations, all of which not sure of their own national identities.  Collectively all are international traders, shop keepers and shoppers. The economy is hugely focused on service industries, having decimated the manufacturing sectors, and is thus import dependent. In a global connected world of supply chains, almost nothing, except tables and chairs can be made without imported materials or parts. With the British Pound falling, the price of those imported goods is rising. British consumers will be paying more for their purchases as a result. This means higher domestic inflation. Which in turn means higher interest rates, implying higher mortgage and other borrowing costs. That means lower profits for companies and lower net savings for consumers and less of what money can buy. Which