World markets are so intertwined these days — what happens in one region of the financial markets can affect another halfway around the world.
New markets in the global space are emerging all the time. And the key to growing your wealth is looking outside the box. The world is truly your oyster.
Here’s how the world market is looking at the moment…
Last week’s big news came on Friday. In short, the Fed didn’t ‘pivot’. Not yet. And bringing our conclusion right up front: the pain has only just begun. It’s later — when inflation-adjusted interest rates are higher than the CPI (consumer price index) — that we’ll find out what a twirl the Fed can do.
The Fed lent money at such low rates that Wall Street firms were able to turn single family homes into an asset class. The builder made money. The realtor made money. The mortgage lender made money. And now a whole new intermediary was in the picture — making even more money off the middle class.
Thanks to the Fed’s ultra-low interest rates and its ‘money printing’, our economy is burdened by US$90 trillion in debt. And Mr Biden has just shown us all how to get rid of it.
US$125 billion per minute… That’s how much Fed Chairman Jerome Powell’s 10-minute speech cost investors on Friday. As he spoke from the annual meeting at Jackson Hole, Wyoming, all major US markets tanked.
For now, everyone has their eyes on Europe’s energy crisis. And we’re all wondering what it means for us. Booming Aussie gas and uranium stocks? Or an energy price shock to the local economy too?
The war news changes daily, and our purpose isn’t to give a dense chronology of causes, events, our purpose is to consider the economic consequences of the war, regardless of military success or failure by one side or the other.
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