Friday, July 8, 2016

Econometrics by index and Volume do not match




From a live trading seminar: The economy may be growing by index, but decreasing in volume for the last decade, after two major crashes (stock market and real estate markets), meaning that investors are pulling out money from the markets, while some investors put inject "printed money" in the market to artificially leverage the economy. The outcome of all of this inflation, which all needs to be adjusted from an very tied econometric point of view. (View from today's S&P 500 index)


NEWSPAPER CUTS



While human being still do not fully and rationally accept and seek peace as the way to attain goals and do business, such as some guerrilla dissidents in Colombia, some terrorists in the East, and some Muslim religious extremists, animals are learning to live together in spite of their natural differences and the food chains affecting them. So, although animals are not so smart, they do no longer fear living in peace with one another.




While some people called it the "Clinton a bonanza time in the year 2000", it was obvious that his government benefited from the long planned Y2K conversion, for which many financial institution, insurance companies and other entities  had long planned; so there was no really any bonanza driven by the government. On the other hand, what could have been a true bonanza continuation for George W. Bush,  actually ended in 2001 with the 9/11 terrorist attacks, which finally took the US economy into recession.






















The Brexit has generated further volatility for the British Pound, creating unprecedented opportunity in the ForEx markets.