Low Interest Rates Keep Housing Market Going

Housing Market growsIt is no secret than when interest rates are low, mortgages are cheap. Therefore it is no surprise that the housing market is still growing. However, if the public expects housing prices to keep on rising, then all the ingredients for a new housing bust might mix generating a dangerous fallout. The price of raw materials and energy are significantly lower now than when the economic recovery started, and the result of years of low interest rates has primed many to believe that this is in fact the new normal.

Whether it is the new normal or not, assuming that it is amounts to a hazard. Wages are not growing too much and the economic recovery remains fragile. In fact the low interest rates are in place to create an incentive for more robust economic growth, but could be fueling a bubble. The outcome of this this potential economic mess that is slowly cooking, depends a lot on the average consumer. read more…

Nintendo Bursts The Pokémon Go Bubble

Pokemon GoMarkets behave in a completely irrational matter because there are enough irrational investors out there. Today we got a glimpse of this irrationality courtesy of a company that should be commended for its honesty. If investors rewarded honesty, Nintendo’s shares wouldn’t have plummeted by 27% since their July 19th peak, when investors caught Pokémon Go fever and lost their bearings. Had they known that Nintendo only has a 13% stake in Pokémon Go, maybe they would have been more cautious when they invested. Nevertheless, enough investors out there didn’t even bother to check the facts.

Not a lot of them bothered to check the facts, or even to take the success of the game in proportion. Even if Nintendo did own 100% of the Pokémon Go endeavor, there is a limit to how much this could add to the company’s bottom line. However, given that Nintendo chose honesty in order to bring its valuation down to more realistic proportions, it came out with a statement to investors on Friday, clarifying the information that so many investors had missed out on. read more…

Low Oil Prices Keep Inflation Subdued

oil ratesIt seems that oil prices cannot cross the $50 USD per barrel threshold, and stay above it for too long. This past week saw oil prices plummet yet again, moving closer to the $40 USD mark. While this is good news for the average commuter, consumers and even for producers who depend on the price of oil or its derivatives, it seems that it is not good news for the economy. Not even in the US, which became the quintessential oil consumer during the 20th century. This is because low oil prices are one of the most important factors that are keeping inflation subdued.

Although low oil prices might be keeping oil producing economies from growing, and this also has an effect on the US economy – Texas, Oklahoma and North Dakota are some of the states affected by low oil prices – the main victim here is the much needed inflation that will prompt the Fed to raise interests. Low inflation stays low also due to the fact that people do not seem to spend their windfall from lower gas prices. The combination of these factors are effectively creating a situation in which low inflation keeps money cheap for longer. read more…

Is Scottish Independence Logical After Brexit?

Scottish BrexitOne of the lines that divided Britain’s referendum on June 23rd, was the border between Scotland and England. On the Northern side of that border, there was overwhelming support for the ‘stay’ camp. The opposite was true on the southern side of the border. Taking into account that Scotland voted to stay in the UK by a margin of just 5% about two years ago, will the Brexit vote change the minds of Scotts in favor of independence now? Perhaps, Brexit managed to tip the scales in favor of Scottish independence, but a vote to quit the UK could be much more illogical than the way Brexit is perceived.

The first fact that voters must face is that an independent Scotland will not necessarily get membership in the EU. Quite on the contrary, Scotland’s EU accession negotiations could be quickly undermined by Spain and other countries trying to quell regional separatist movements of their own. But EU accession troubles are just the tip of the iceberg. read more…

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The Binary Options Wolf Den

Binary Options a Scam?The binary options industry has always been an industry dominated by dubious organizations. Just recently we have been seeing more and more efforts to expose the overwhelming amount of scammers that run it. Governmental organizations and financial regulators across the globe have been actively looking for the wolves who are running all the scamming activities. It seems that these wolves are particularly crafty and they have been able to avoid legal sanctions with unparalleled guile. read more…

Financial Markets – Preview for Week Starting 24th July 2016

Major Events of Last Week

Financial market reportA spate of disappointing US Corporate results prompted global equites to slump last Friday after recording historic highs. The United Kingdom released key data late last week revealing that the June vote to exit the European Union had generated a sizeable economic downturn during July. Specifically, slumps in both the UK servicing and manufacturing sectors were so dramatic that they could herald the start of a new recession become the end of 2016. Oil prices continued to weaken last week as excessive global production and stockpiles threaten a retest of the lows registered during the first months of this year. The topmost US indices rose last Friday exemplified by the Dow Jones Industrial Average surging upwards by 49 points; the S&P500 inching 9 points higher and the NASDAQ climbing by 24 points. read more…

Free Forex Economic Calendar Live

We’re proud to announce the first in our new range of trading tools that we are developing – the TradeOpus economic calendar.

An updated calendar of market announcements is a key tool for any trader in any market. The calendar has options for filtering so that you only need to see the information you’re looking for. The calendar has an easy to use interface and includes filters for:

  • Time and date
  • Markets
  • Expected volatility

We’ve also included a an easy to grab code snippet underneath so that anyone can use it on their own website. Just copy the code and enjoy an automatically updated economic calendar for your visitors.

 

Santa Effect on Bitcoin?

santa-bitcoinThere is no doubt that 2015 has been full of economic volatility. From the price of oil, to stocks, indices and the economic performance of key countries, it has been a year in which finding a safe haven was an almost impossible mission. From within all the volatility, is seems that one of the best performers was Bitcoin. However, it also dipped after a stark rise in October, but it seems to be picking up steam again towards the year’s end. Maybe it is a kind of ‘Santa Claus Rally’ for a strange mix of investors.
read more…

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