Wednesday, July 23, 2014

Risk and the Markets Today

There's a wall of worry out there,said former Ronald Reagan advisor and CNBC contributor John Rutledge-the Middle East,Russia/Ukraine and the South China Sea-but the Fed has added three trillion dollars,which is leaking into the economy through the banks.That's why prices are gonna continue to go up,I think.
For me,the two big bets to make are private equity firms and real estate.I think the small stocks are a bet to make-small caps over large caps;the US over Europe;avoid Japan.
I think the rates are headed up from here,although the fear buying is pushing them down right now.*
The Saudi stock market is planning on taking a risk and opening more to foreigners in the first half of 2015.The Saudis want to increase foreign investment;diversify away from oil;and be represented in the MSCI and other large indexes.Companies such as Kingdom Holding and Alrajhi Bank will be available to foreign investors,but only if they are institutional traders with at least five billion under management and have been in business at least five years,a draft document says.Saudi Arabia has a half trillion dollar market,the last of the large closed markets.*
This MH-17 shootdown has become a huge human drama,said Senator Dianne Feinstein,D-California,Chair of the Senate Intelligence Committee.I think the nexus between Russia and the separatists has been established.I think the world has to rise up and say we've had enough of this.You cannot let this kind of thing happen.
The fact of the matter is,to me,this kind of missile that travels at 2-3 times the speed of sound-there have to be some penalties for this kind of a shootdown.This kind of weapon has been given to separatists that are in many respects thugs.Russia-US relations are now at Cold War levels,Senator Feinstein told CNN's Candy Crowley.

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