theconstantines

6.25.2013

Biggest financial bubble is about to blow

It must have happened and now it is starting. The biggest speculative bubble in history is starting to deflate, and the next months the trend could accelerate and a collapse would occur. Any financial active on planet will be affected. 

The monetary policy adopted by the Federal Reserve, European Central Bank and other powerful central banks (Japan, Switzerland) pushed prices of financial active to a historical highs…this will end up bad.


Results: hyperinflation and collapse of some economic sectors
Stockmarket – trend inversal

United States Utility index…12% down on the last two weeks, biggest decline of last four year
Japanese Stock Market…18% down on the last two weeks,
Worldwide Stock Exchange…negative trend



Bond market – higher interest


Most liquid bonds (Japanese and American) biggest decline of the last years
Lower the bond, bigger the interest;
Credit very expensive or inaccessible



Forex market – illiquidity


AUD… 10% down…lower demand of commodities and row materials
JPY... decline … investors running
USD… three years top… dollar safe heaven, global panic
.



There are powerful signals that stock and bond markets ignore risk. Investors are looking for higher return rate on extreme levels. Putting all together, we see a big bubble and as always it separate the rich from the ordinary people, money do not disappear, money run away from the last buyers to the last sellers

No comments:

Post a Comment