Market Thoughts Archive

Risks at Chinese City Banks

Risks at Chinese City Banks

Posted on October 02, 2016
The usually forgiving banking regulator of China had enough of the less than transparent financing of city banks and warned them to put an end to their rather risky practices. There’s a good reason for this: a 2008-like crisis may happen in China if smaller banks start to fold.

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The Fed still waits to hike rates

The Fed still waits to hike rates

Posted on September 25, 2016
Although the era of negative interest rates may end soon, the Fed decided to wait with its rate hike this Wednesday. This is not unexpected, as market only gave a 20-25% chance for the hike, but more and more people believe a hike should come soon.

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The era of negative interest rates is coming to an end?

The era of negative interest rates is coming to an end?

Posted on September 18, 2016
Investors’ mood is getting worse on the Wall Street since last Friday when another Fed official mentioned the need for rate hike. Last time we saw such a fall on the markets was right after the Brexit referendum. Soon after that, the optimism returned. In September however volatility is back again, and, as every year, S&P 500 may perform worst in this season.

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September is the month of gold

September is the month of gold

Posted on September 11, 2016
September is the best month of the calendar for gold – believes Mark Hulbert, the columnist of MarketWatch. He adds that since the 70s (when owning bullion become legal) the “average return for the 11 other months combined is 0.6%, or barely more than a quarter of September’s average gain”. These tendencies are in contrast to stock market’s performance, where September is the worst month.

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The further opening up of China

The further opening up of China

Posted on September 04, 2016
China started to build the link between the stock markets in Hong Kong and Shenzhen, which will probably start in November, according to Bloomberg. This will open up Chinese markets even further letting foreign investors trade more. Other changes, like better regulations are expected in the Asian country as well.

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