Financial Experts Required

[utsamad]

http://www.globeinvestor.com/

Markets calmer on central bank interventions
“But if stock exchanges fail to get back on an even keel, Bank of Canada will likely hold off on raising interest rates next month”

Hmmmmmmmm…………I need help with this
A ………..So here we have the Bank Holding off on Interest Rates in the Hope of Keeping the Market on an EVEN KEEL………………which by all conventional thinking is Quite Logical…….no problem here.

Here is the Paradox

B…………However if the Holding off of Interest Rates as above proves successful as to keeping the Markets on an EVEN KEEL………All implications are that the Bank will then Raise Interest rates.

Mamamiahhhhhhhhhhhhhhhh

Any Ideas??? Is it time to buy Bonds?

[pseudoname]

You aren't seriously expecting to find financial experts here, are you?

I'm most certainly not one, but I believe it's pretty basic that interest rates have had nowhere to go but up for quite a while. And I don't see the markets being on an even keel for any length of time. Way too many people, both here and in the US, took advantage of zero-or-5-down, and bought places at the upper end of their pre-approval mortgage amounts, instead of doing the smart thing and thinking in terms of whether or not they would be able to afford that mortgage when renewal time came around and the interest rates were back to being higher, and buying at the lowest end of their pre-approval amounts. That old saw of biting off more than you can chew. Massive defaults are the natural result. Remember the early 80's?

I'm not sure the world's markets have ever been in such turmoil though. And now we have something happening that I've been anticipating for some time - how China decides to flex its muscles. Google the following -
"china to dump us dollars if they screw around with the yuan"

On top of that, we have Russia forcing its way back onto centre-stage; whether or not it is actually financially able to flex that muscle, it will have an effect on markets. Then there's the whole Venezuela factor - how what the governments of the countries in that region do that will influence where the big investment money goes. Because of the socialism/nationalism/protectionism aspect, those countries will enjoy only a brief period of alleged "prosperity" after which, as has always happened in the past, the bulk of their populations will be as poor as the minority of them are now.

I don't think the only answer is to go into nothing but bonds. I do think that one should generally use the same risk factors that apply to themselves personally, ie: young and making money, weight more heavily in growth vehicles; old and needing income, find stable income-stream investments.

In effect, I've suggested nothing new.

[utsamad]

I'm most certainly not one, but I believe it's pretty basic that interest rates have had nowhere to go but up for quite a while.

Dont Disagree at all...............but that creates a New Paradox Altogether.

That Most Certainly wont help the Sub Prime Crowd.

What it will do is bring on the Foreclosures of the Next Group in the Credit Rating Hierarchy.Then the SHT will hit the fan.Now we are no longer talking about those who should never have been able to borrow in the First Place.These are the ones that really affect the economy.

Ohhhhhh what a Mess

[utsamad]

S..........

You aren't seriously expecting to find financial experts here, are you?

You wont find any on the BNN Channel Either. I dont have a crystal Ball either...............but I do better on my own than most of these Self Accredited Financial Managers.I moved into 60 % Cash 8 weeks ago with about 20 clicks of the Mouse.

When I listen to some of these experts and then check out their Fund Performances .........that is all I need to know.

[pseudoname]

In that case, you really dont need to be trying to find financial experts here, do you?

[utsamad]

That the Booming Economies of China .........India ......Brazil.......and Russia .......are going to keep the Global Financial Markets afloat regardless of a US Recession. What a Load of Crap

The Second biggest lie is that the Canadian Economy is going to carry on unscathed by the US ECONOMY. THIS FALSE ASSUMPTION IS BASED on the notion that Canada is not Quite as Dependant on the USA AS Previously.

The above of course ....while true......Doesnt mean a lot when the Economies of the other Countries we supposedly deal with on a larger Scale are Going Straight into the Dumpster due to the USA Slowdown.........Exactly as we are

The USA is the Buyer OR Consumer for 25% of the Entire Global GDP.i DONT THINK THE REST NEEDS TO BE SPELLED OUT.

The Capital Markets (Stock Markets) are ENTIRELY AN INVENTION OF CAPITALIST USA and there is NO WAY that Global Capital Markets can Thrive without the USA ECONOMY IN High Gear.

So while it is Logical that the Underdeveloped Countries are in the Process of Climbing out of the Hole....................Anybody that thinks this is going to happen in a Straight Upward Line is in for a rude awakening.

Utsamaddayou.................N/C.........