World Economy – Ready for the Big Bang?
Asia and Europe continue to loose ground as the Euro zone economic troubles spread. Even Scandinavia is starting to unroll the red flags as Swedish finance minister Anders Borg declared that the effects of the Greek scandal are now being felt. On top of this, the speed at which the European community and IMF are expected to react places a severe burden on the zone economies. If Spain is next, the global effect will be severe as Eu turns into a black hole.
We have said it before and say it again: we feel the current global financial level is based on preemtive optimism and may see further setbacks. The financial spectacle withing the European Union is but one facet and, although you may think it sounds like science fiction, the effects of global warming have yet to impact on the global aconomy. Although not imminent, when these effects start to influence interior economies the backlash may be substantial and swift.
On the topic of swift, Thursdays downward spike due to computer glitches shows with blinding clarity just how swift (and edgy) the global markets are today. The Dow took a severe dip, fueled by programmed triggers.
You can´t program common sense into a system. Neither can you try to supply common sense to the people once the mass takes the cue from a system and starts moving in earnest. We didn´t see the full effect of that on Thrusday but bracing yourself for a quake sceanrio might not be ill-advised.
As always, there is profitablity in every situation and it might be a good idea to maintain a alternative portfolio.
If you are looking for commodity prospects Nickel and Copper may still be worth atention as well as wheat for the somewhat more adventurous wallet.
Once again: keep an eye on Spain and perhaps Portugal specially. Italy is as yet under the radar but worthy of attention as events unravel..
Related posts:
- Bulls ready for another Dow push?
- Standard & Poor grades Greek economy as junk
- Japan economy on comeback course
- Get ready for a extreme stock trading Friday
- Are you ready for the tumble?
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