Standard and Poor’s didn’t shy away from issuing en masse downgrades to 9 countries in Europe after months of warnings. In other words, Europe is on thin ice and will have to act fast before its unified economic foundation breaks into fragmented pieces. In this week’s video, managing director of sovereign ratings at S&P, John Chambers, presents a breakdown of …
Political Affiliation and Investment Returns – Is There A Link?
With the Republican primary well under way, I’m sure you may be wondering which candidate will be able to revive the U.S. economy and push markets back into bull territory. Over the years, the debate between politics and financial growth has been contentious, questioning whether Democratic or Republican policies are more beneficial for the economy and financial markets. As we …
European Banking Crisis – ECB Action Is Not Enough
The ECB has taken drastic measures to ensure the liquidity, and probably more realistically, the solvency of the European banking system. Through long-term refinancing options, which are essentially near costless loans, the ECB has tried to kick start banks into lending mode. However, as apparent in this Financial Times analysis video, these actions have failed to inspire confidence in the …
A Rough 2011, But Will 2012 Get Any Better?
It’s been a crazy year for markets to put it mildly. Europe descended into a full blown financial crisis, the U.S. failed to make significant headway in economic growth, and Asian economies started heading south. And the sad part is that 2012 might just be much of the same. Looking back on 2011, Guardian economics editor Larry Elliot reviews the …
The January Effect: Will It Hold In The Current Investment Climate?
As we head into 2012, there are a multitude of scenarios that may unfold. But looking at the short-term, some investors look forward to this time of the year because of the January Effect, an apparent anomaly that questions the efficient market hypothesis. The January Effect is named for the fact that monthly performance in January has been overwhelming positive. …
Eurozone Re-Cap: Is A Long-Term Solution in Sight?
Although the EU Summit has come to a close this week, it’s still hard to see whether the Eurozone has the tools to rid itself of its crisis. The U.K. has decided not to agree to the new EU treaty, creating some discord among the 26 other European members who agreed. However, greater problems are still at hand, especially whether …