Monday, December 5, 2016

ECONOMIST CORNER

ECONOMIST CORNER
PAN TRADE SCHOOL
SMART INVESTOR SOCIETY
MR IBO RICHARDS
MONETARY POLICY v FISCAL POLICY

SAFE INDEX-------- Unch
THE HOME PRO----+.05%
CORNER OIL INTERNATIONAL----+9%

Good day
Regulators and policyholders have the task at hand of pushing a US Economy that is thriving in the midst of a recovery. Many argue that more fiscal stimulus is needed to reduce downside risk. And the question is posed should the bond markets be where they are at with monetary policy moving forward. As investors play the markets higher, experiencing stronger yields in bonds, and witnessing a higher dollar the conversation shifts to finacial conditions and less fear as tightening resumes in finance in the US economy.
Fiscal policy is anticipating expansion and growth and the new adminstration in the mid term translates to less monetary policy.
The question then is how much and when does stimulus go to work for the US EConomy. Assuming of course the substantial stimulus fiscal stimulus increases the infrastructure capacicity of the economy. Higher wages needed depends in inflation and again the stimulus. Objective for inflation in the range of two percent has the econkmy realizing that inflation is to low which is causing more pressure on labor as the economy grows.
Now it must be understood in this economic equation that growth, unemployment, and interest rates reduce downside risk. And amending finacial reform, raising capital to banks and money markets fund reform to excite lending is a plus for the evicting economy,
Talk of Voljer Rule reducing aggressive firms  cause premature speculation and is negative for economic growth and drive the productivity risk. Strong dollar the same.
Fiscal policy is aggressive. Example wuabative easjng. Monetary policy in placing stabilizers in the event of a catastrophe requires fiscal support.
Argue -- Timid is the Fed and assuming is the investor.
Homework ---- wage compensation inflation and much volatility in the tight labor markets.
Thank you and have a great day.
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Thursday, September 29, 2016

OLD NEWS

ECONOMICS CORNER
Good day
business contributing to society.
Many argue on balance and strongly believe that there are no drawbacks of free trade. In less developed countries free trade laws in agreement as well as organizations such as the  World Bank without a doubt help them to become less poverty-stricken. By reducing trade barriers these lesser developed countries can grow in a have fair governments in competing free markets. The more developed countries benefit by being able to support less fortunate countries and also sell their products in the lesser developed country markets. It is a given and emerging markets that more developed countries gain allied by helping and supporting lesser developed countries in the free-trade movements.
The largest economy  being the US economy benefits from international trade by applying it's self and offering plentiful capital to parts of the world when it is less available. This supports growth in housing, education, infrastructure and most importantly manufacturing. A positive for this kind of stimulus if you will is the growing number of cell phone users in other countries. The headwind of free trade moving forward is the threat of terrorist. And the more advanced economies and a lesser smaller economies should find common ground by placing laws that play a role in ethical responsibility in business.
Thank you and have a great day.

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Thursday, September 8, 2016

INFLATION THE WEOPON OF THE FUTURE

Good day
Do you believe this?
"Inflation is the one form of taxation that can be imposed without legislation".
                   Milton Friedman Noble Prize Winning Economist

With that being said. Emerging markets have come to an inflection point and must come together finding common ground on Free Trade. Question. Inflation affects all economies one way or another correct? And is business contributing to society?
Many argue on balance and strongly believe that there are no drawbacks of free trade. In less developed countries free trade laws and agreement as well as organizations such as the  World Bank without a doubt help them to become less poverty-stricken. By reducing trade barriers these lesser developed countries can grow within a fair governments while competing in free capitalist markets. The more developed countries benefit by being able to support less fortunate countries and also sell their products in the lesser developed country markets. It is a given and emerging markets that have than less developed countries gain allies by helping and supporting lesser developed countries in the free-trade movements.
The largest economy being the US economy benefits from international trade by applying it's self and offering plentiful capital to parts of the world where there is less available. Housing,  education infrastructure, and most importantly manufacturing are positives ositive for this is a kind of stimukus i f you will. Though this type of funding in the form help by allow and does not off set those who participate in the inflation targets mandate.
The  growing number of cell phone users in other countries is a plus. The headwind of free trade moving forward is the threat of terrorist. And the more advanced economies and a lesser smaller economies should find common ground by placing laws that play a role in that ethic responsibility in business.
Thank you and have a great day.
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Thursday, September 1, 2016

PIXIE DUST

Good day
Many speculators are looking at graphs that suggest that the stock market could correcting itself as in 2008 correcting. Don't laugh. There is a charitable argument here, and there is a pattern that many business use a gauge to entice investors showing them that every 10 years or so the markets in the US. top themselves off and dive into a abyss if confusion, panic, and rage towards regulators and leaders of government. This is in the US. Through recent technology economist recognize that emerging suffer even more than the US when this cataclysmic event takes place. For they depend on the safest place to invest and the largest for a safe haven and for the comfort and affordability of consistent growth.
Here is the headache. The US Federal government was regarded as not doing anything to monitor the economy leading up to 2008. The US Fedreal government was labeled as having no bullets or amunition if you will to fight inflation, technology and most ideology that fuels innovation. Ok. Currently the quanta tube easing that US Federal government exercised or is still exercising was like pixie dust to the US stock market. Come again. The Keynesian approach to the US economy outs the US stock markets at an advantage point as the US economy actually witness history being made as it spent its way out of the recession. Question despite the timeline that traditional investment vehicles are being marketed telling the tale of fear which many will argue is not wrong. However in the NEW US Econony the change is inevitable and there is no indication that spending in its current form or any easing will cease. Yes. Interest are begging to put in place but this zero interest environment is dragging the US Econony along just fine. Again many will argue the amount of money being spent is not nearly enough to support the largest economy that is weighted down in macro capacity by emerging markets advanced economies who despite bring competition to the market but depend just as much in successful US Economic recovery. Markets are not set to go down in this environment. The popularity of spending is growing not only by public opinion but due to the age of the young US stock markets that is relatively cheap at this juncture. Keeping in mind companies are constantly raising divined sand expanding around the globe keeping investors expecting and wanting more each quarter round. The massive spending is not even off set by cuts yet the US government is in expansion mode proving a plus in employment. From a trader perspective fear. From an investment advisor position optimism. From an economist perspective advance the US Economy for not just the humans in the US Economy but the humans inside the emerging economies are depending even more for a successful recovery that is still in its early stages of recovery. More pixie dust.
Thank you and have a great day.
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Friday, August 26, 2016

FED UP

Thank you Regulation.. Bureaucracy.. Favoring..
US Economy said to be expanding. Not to be confused but the question is as the economy expands does it strengthen? What are new variables and equalizing measurements as the population in the cities grow? Future generations now learn faster through technology which is a given. Does the yield curve get affected by this and furthermore is the fact that people live longer through new findings in healthcare which include exercise affect GDP growth in the US Economy. Lastly how far is the mandate sought out. and what would the correct exit strategy be as wages increase along with property values. Self management again through technology affect financial institutions and could there be any truth or need for that matter for the stress test. 
In light of a recession which seems are gamble to predict or on the other hand inevitable as heard  will cause the US Economy to see what is deemed as logical adjustments meaning stiffer and tighter policies.Fear factors such as these can cause mixed signals as the information society takes much more than needed out of context and support the popular opinion trade. 
Thank you and have a great day

Friday, August 5, 2016

WIDE WORLD OF TRADE REPORT

MY MIND PLAYING TRICKS ON ME
Good day
This is the tune heard around the Wall St. Fund managers as they argue over the fact of interst rates taking down the markets. The truth of the matter is that asset valuations are relatively high suggesting that the US stock markets has the steam to run and wind behind its sails to go higher. Not ruling out that the US fed government no only can print money on the fly it can also create ammo. Ammo that in the newest term will wipe out any economy that is trying to run with it. Using its energy wisely the US economy floats it's GDP despite upsetting inner city business which is relying on heavy spending rather than consumer hoarding cash.
With that being said the BOE raising rates in a time like this is risky considering that the economy is already showing no mercy as it intimidates energy markets who are still trying to find themselves and figure out who they are really are. The advanced economies would be wise to saving its ammo in the form of interest rates and stimulus for it may need these weapons for more stimulus. As the advanced economies to attempt to show resillience the world clearly sees the Criminal Theory as they cheat industries and affect the flow of their nominal GDP. The overpowering trip wire effect will soon hit the emerging markets and through regulations the emerging markets could burn.
Enjoy the US markets all the time highs well deserved.
Advantage point to the West.
Thank you and have a blessed day.
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Tuesday, August 2, 2016

THE LAST SAMURAI

Economist Corner
August wk1 16

Good day
The global effect of stimulus in the new emerging markets is alien to to most Western investors.
The US is still the best to place to invest. However the Japanese is using stimulus to recurrent its investment strategies and push the Yen stronger which makes the US Dollar pout.
This is very good for emerging markets for it shows that the economies in the emerging which by the way again us being the led by the US economy which is for ahead of the 26 advanced economies in the scene. Kenyensian Ecknomics could very popular as Japan and US show that business is cheap even its booming. Spending the money verses later will establish a strong hold in not only politics but free trade.
Abe Economics will help a Japan become a stronger ally for the US if this is in fact true and remains the same. The US Dollar will retreat against the yen in almost event like the latest form of stimulus to Japan. Happy are we as economics to see a strong economy take on the risk and follow the leader.
JAPAN!!!
Thank you and have a great day

ECONOMIST CORNER

Monday, May 23, 2016

CHANGE

ECONOMIST CORNER

Good day
One will argue that the economy cannot be day traded. Reservation for technology, as in financials companies have more cash than ever. The technology allows business to cut back on hiring and dismiss many not needed departments. Due to the gravity of the financial situation in the US Exonomy, Americans have shown resiliency by not releasing employees which has brought corporate profits down. These actions help the economy but hurt the stock market. The recession seen in corporate profits which according to WIDE WORLD OF TRADE REPORT corporate profits should be a live economic indicator like would a retail sales or unemployment numbers would be presented.

With that being said. The change of the plan to raise the interest rate in the US Economy will cause the stock market to experience even higher levels of volatility in late 2017 through 2019. Gold prices could rise respectively and takes its place in the investment as the safe hedge. Meanwhile energy companies will be once again very popular as their earning growth out paces the US Economies recovery. Oil seems to have been staggered by technology, but in the long run from an environmental eco colonic approach to not just the US Ecojomy but the emerging markets in general, oil will be looked as coal is today in the short term.

Thank you and have a great day.

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Sunday, April 10, 2016

The Future Looks bright

Good day
Today the emerging world is experiencing comfort of new information that's transforming new societies and a whole new way of thinking. Constant innovation which is by far not even close to being oversold is now blasting its way to forefront of the new frontier. For emerging markets existing outside the US this is all good. Why? Because it's a new beginning for many nations as many nations flirt with the technology. In the US however it's a different tale. In the western world many of its innovations that led the globe in the past are now outdated. Many would argue that this is a buy tech signal all day. Clear as day. Here is the headache many in the US culture are deeply rooted in the existing forms of technology and the change has to be orderly in order for the new way of life to flourish. Now what happens jobs are lost many jobs many good hard working honest Americans will have no job
To be continued
Thank you and have a great day.
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Tuesday, January 26, 2016

2016 FEBRUARY

STOCK MARKET IN QUESTION

Good day

The question has been posed is the US market headed for recession? To begin with the banks are in question. The development of the decoupling financial crisis was instigated by financial institutions. led by banks. This makes emerging markets harder to target for more diverse investments. Due to the different beliefs of evaluation. The weak side of currency makes investors optimistic as companies getting cheaper makes them more attractive.
Many argue that the stock markets are headed for recession in 2016 and 2017. The numbers will show that it is fifty fifty verses thirty percent. Why? There are many catalyst within the US Economy that will influence a higher chance of recession. Lets remember that the US has gotten a downgrade in many investment circles. The removal of the punch bowl in market stimulus and most importantly not just a Presidential election but a change in the regime. The markets will feel profit taking as the old out and new investment with the new. Also financial reform  as many will argue has derailed a recovery of the weakened markets or at least help slow it down. As investors are set up for what has happened and if which is highly likely that many policies put in place will be dismantled or changed if you will will cause the avid investors to redirect course.
Now the emerging market scene hold more weight and influence than ten years before. Russian and Chinese are optimistic yet the numbers from these economies are higher than ever. Moving forward over leveraging and emerging market policy will affect US market volatility. Make no mistake about this.
Thank you and have a great day.

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Tuesday, January 5, 2016

WHY. YOU ARE A MAD MAN

Oil at 70 dollars in 2016 2017

Good day
Today many investors are gathering data suggesting that oil is going to bottom out and near the 70 dollar level late in the fourth quarter. Is this possible? the mad man business concept being presented here to call and lure investors to a pricier oil is a stretch. In the US drilling cost are going up and more and more layoffs in the oil industries are imminent.  To begin with there is an election year in the US which will have a change in the regime of leadership. Second the US economy is enjoying oil flirting with $2.00 at the pump. Middle America looking for gas to get higher at the pump. Not.
The pipeline is working fine despite many in government in the US saying that the pipeline would not open. Good or bad? And most importantly there is a war going on the planet that the US is begging to get into that involves many of the oil countries giving the US competition in oil. Reserves are stabilizing and many states in the US the oil business in less than 5 percent on average of the economy. The feature here is the oil companies who can manipulate dividends and express positive growth to investors that may have some companies in the sector see higher stock prices.
Oil over 50 in 2016? Why you are a madman!!!

Thank you and have a great day.

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