Tuesday, 12 August 2014

The financial snake and the golden ghost

At present the international scene is very unstable. People with lots of money and greedy egos seem to be particularly confused about the prospects. They have the financial resources, plenty of financial muscle, they get into the markets, buy loads of shares, then get nervous, and move out as swiftly as they came in.
That shows the volatility of the overall geopolitical situation.

It also shows that financial decisions and the related markets are now fully connected all over the world. Early in the morning, well before the beginning of the business day in Europe, people in London, Paris, Frankfurt, and Luxembourg will get all the data from stock exchanges and analysts in Asia. That gives then the trend for the day.

And vice versa. Tomorrow morning, big guys in Hong Kong, Shanghai or Tokyo will start their early hours by looking at the information coming during night from the US. And that will influence their decision making.

It is often the snake eating its own tail. 

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