Wednesday, 2 September 2015

Samurai Summary: Top Tweets 02/09/2015

Yesterday Google rolled out its new logo design which is the first design change in over 14 years. A tech company who survived the I.T Bubble of 2000 Google has grown to become the world's leading search engine and practically part of everyday living. Recently it announced the formation of a new company called Alphabet (Strange I know) that will be the holding company for Google's subsidiaries so that management can focus on each one specifically.

A rather assuming account of how things are looking at the market of late and with much excitement going around I frequently get questions from non-financial persons asking me what in the world is a "dead cat bounce"? The term is used when the market falls significantly, usually at a more rapid pace than would happen in a market rally. The old adage goes; Bulls climb up the stairs, Bears jump out the window. The fall is so unexpected and huge that traders jump on board for a mini rally only to grab quick profits creating a surplus of sellers allowing the market to resume its fall.


 US markets received a drubbing in late session as worries over global growth scared investors away from equities and into cash. Both the S&P 500 and Dow Jones closed nearly 3 % off from Monday's close snapping up a nice week of gains. Are we in for lower levels? Could be given the unusually high volatility and the fact that September is a bad month for markets I personally don't expect much.

The Economist posted a great article on the effects China is having not only on its citizens but trade partners as growth sinks to new lows in years and commodity slump is making bigger waves than expected. China was the case study for many proponents of globalisation as the world becomes more interconnected than ever before but there are always a few snags along the way which should give policymakers time to assess what went wrong.

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