Governments have a poor track record when it comes to pushing new energy technologies because they are generally unqualified to conduct due diligence on companies seeking government funding.
Today’s market action will likely see a reversal of Monday’s modest pullback that had some people start thinking of the long-awaited ‘correction’. Monday’s action was likely nothing more than the market’s typical tentativeness ahead of key economic data – with Friday’s March jobs report being the key data point this week.
Unsustainable debt. Depression-era fiscal policy. Monetary madness. Welcome to Japan. You may not live or invest in Japan, but your investments may well be affected by what is unfolding in the Land of the Rising Sun. Be prepared.
What can investors learn from a psychologist and a novelist? Frank Holmes explores the connection between Maslow's Hierarchy of Needs and why investors haven't captured the superior returns from gold, oil and stocks over the past 20 years. In addition, the events in Cyprus bring to mind a passage from Atlas Shrugged.
The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.
There are intriguing parallel between the strategies employed by players and coaches to get around the NFL rulebook and the kick-the-can antics of Eurozone politicians.
The rolling crisis in Cyprus should reach a crescendo this week. If the parliament votes yes on some type of deposit confiscation, it would mean the people of Cyprus have elected to go “all in” on the euro and link their fate with the fate of the single currency.
Some people believe that by imposing losses on investors and reducing the Cyprus banking system liabilities, the European powers have addressed the problems in Cyprus (if harshly).
The risk-on versus risk-off trade, aka RORO, has been the modus operandi (MO) of many investors over the past several years. The Fed is going to goose the market? I’m going all-in the beta trade. Europe is imploding and the euro will cease to exist tomorrow? Sell, Sell, Sell!
Among all the negative consequences of the Cyprus banking crisis and the disastrous way that policy was framed, there is a silver lining to the problem.