Tuesday 8 September 2015

Samurai Summary: Top Tweets 08/09/2015

Good news coming out of the US Housing market with the percentage of mortgaged houses below their loan value dropping off nicely continuing a downtrend that's been in place since 2012. The US economy is seen as the beacon of hope for the rest of the world currently but has yet to shine as bright as expected. Widespread belief that the Fed may lift interest rates for the first time in 10 years has spooked investors on to the sidelines for the time being. If that were the case the figures shown here paint a suitable environment for an increase with limited risk of provoking a crisis in the housing sector.

Since the Chinese devalued the Yuan last month most emerging market currencies have had trouble batting down the hatched as there has been a massive exit away from riskier economies and into safer ones namely the US Dollar. In the short run it shouldn't be a bad thing for these economies as it serves as an advantage when it comes to exporting but prolonged periods on currency weakness may incite economic participants to drastically increase the cost of production, especially nations who are dependent on capital goods being imported to produce goods. It will be interesting to see how policymakers deal with these problems in the months to come.

Interesting take on market developments with, in my view, the most elaborate point made that no person is immune to emotions. Just yesterday while scanning the market for a trade I was confronted by an overwhelming sense of confusion much of which was brought about by movements I hadn't expected. Tougher market conditions generate emotions that need to be dealt with quickly which is why so many new traders fail to make it.

Can the South African financial regulator, FSB (Financial Services Board) change the image of how investors see hedge funds with new rules and regulations to enforce more protection for investors. According to the article it would seem that most fund managers who spoke to Business Report are in favour of the FSB becoming more stricter. I suppose it only serves to increase the strength of the South African financial system which has to be a good thing for the public. Thumbs up to FSB.

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