Macro Update: Markets Gains
in August. Central Banks Stimulus
Possibilities
I
have just read an interesting article which indicated that major stock
exchanges throughout the world experienced relatively strong performances,
though on thin trading which is typical for this time of the year. Obviously,
such thin trading can exaggerate and directional movement. Coming out of the
(Northern Hemisphere) Summer and into Winter, it added that volumes generally
increase, leaving markets exposed to strong swings.
Saying
that, the article went on to explain that the gains were based largely on rhetoric
and attitude displayed by Central Banks in context of potential stimulus
packages, rather than manufacturing activity, which has declined over recent
months, and that there are still significant word wide unemployment concerns.
So,
in short, what is going to happen from September onwards – keep your ear to the
railway line as there could be a locomotive of stimulus heading our way, or it
could be a train wreck. In other words,
as a truly informed market analysts once put it succinctly while chewing on a
piece of straw: “Might go up; might
go down; might go sideways”, as he licked his finger to feel which way the wind
was blowing.
Meanwhile, at Little
Rock, in our micro world, we still have significant bridging funds to loan
under the right scenario – refer our main blog.
Sometimes,
I just think that there is too much
information and navel gazing out there using Google, whose company mission
statement from the outset was to “organise the world’s information and make it
universally accessible and useful”, and other search engines, and fuelled by Facebook,
Twitter, LinkedIn, the three largest networking sites (at least according to
Wikiperdia – yep, I’m guilty of it too!)
Too
many reasons to encourage personal and commercial inactivity...
Let’s
just get on with it. I’m going outside with no shoes on to walk on the grass
and throw the ball for the dog.
