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.

ECONOMIST CORNER is sponsored by THE IZ CORP EXCHANGE

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.

ECONOMIST CORNER IS A MEMBER OF THE IZ CORP EXCHANGE