Low Interest Rates Keep Housing Market Going
It 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
Markets 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
It 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?
One 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…
Global Trader 365 Scam
We rather recommend trading at BeeOptions or Redwood. Both accept US traders and offer free demo accounts. Click here for all broker ratings.
Updated Nov. 2013
I recently received a message from someone asking if “Global Trader 365 is a Scam”. In a previous article I have indicated that Binary Options is a relatively new industry which has just recently began the process of regulation. The CySEC license which was acquired by Binary Options platform SpotOption has opened the door for the regulation of Binary Options brokers throughout Europe. In fact Banc De Binary has received the first individual broker license for Binary Options trading from CySEC and is thus EU regulated. It won’t be long before most brokers gain EU regulation. Banc De Binary also claims that they are negotiating with the CFTC to secure a trading license in the US as well.
Is Global Trader 365 a Scam?
Until most or all Binary Options brokers become regulated by at least one regulatory body there is no objective way to guarantee the the veracity of a particular broker. The most common method is through internet searches, which can give you an idea, but is not a sure source of information. The brokers that we review on our site are based on actual testing of the site and by trying to speak to as many people in the companies as possible. As I have said previously I haven’t found any broker to be an actual scam. There may be issues with how long it takes to make withdrawals and issues regarding bonus conditions, but understand most brokers are white labels of several large platform developers. In the case of GlobalTrader365, for example they run their platform off SpotOption. SpotOption is a massive binary options platform developer as well as a CySEC regulated market maker. If a company like GlobalTrader365 was a scam they would suffer first off from bad word of mouth which would be devastating for a business operating in such a completive environment, but even more significantly the parent company, SpotOption, would have little tolerance for malfeasance on the part of one of its brokers.
GlobalTrader365 Scam Update
We have recently received several complaints from customers about their experiences with GlobalTrader 365. The issues relate mainly to problems in securing withdrawals. Based on our investigation GlobalTrader is in contact with the traders and they are in the process of trying to come to a resolution.
If anyone has issues or complaints against GlobalTrader365 or any brokers that we have reviewed please don’t hesitate to Contact Us.
Financial Markets – Preview for Week Starting 19th June 2016
Major Events of Last Week
At the end of a particularly volatile week, the financial markets succeeded in regaining their composure following the tragic murder of a British politician which prompted the UK parliament to suspend all Brexit campaigning. For instance, oil prices managed to rebound last Friday after recording seven consecutive days of losses even though analysts were constantly warning about significant turbulence ahead. Despite keeping its interest rates unchanged, the US Federal Reserve still surprised investors during last week by revising its forward guidance policy downwards. The Fed now anticipates implementing just one rate hike during 2016 instead of the two previously envisaged. The premier US indices retracted last Friday confirmed by the Dow Jones Industrial Average falling 72 points; the S&P500 inching 8 points lower and the NASDAQ dropping by 39 points. read more…
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