Here’s a quick, executive summary of stories from this past trading week, with a link to the full articles online.
The Dangers of Islamic State
Islamic State is now the largest, most dangerous, global terrorist organization of modern times. It has the power to wreak more havoc than 9/11, bring down more governments than the Arab Spring, sabotage more foreign economies than the debt crisis, and drive more flight capital to U.S. markets than the crisis in Greece or the conflict in Ukraine. Read Martin D. Weiss’ take on the situation by clicking here.
Super-Dollar Causing Serious Damage
It’s a bird, it’s a plane — it’s Super-Dollar, soaring higher into the investment stratosphere and rattling the cages of U.S. multinationals with its sonic booms. Read more about the risks of the rising dollar from Jon Markman by clicking here.
Larry Reports From a 1,300-Year-Old Tibetan Town
Larry recently visited the 1,300-year-old Tibetan Town, in Dukezong in Yunnan province, southwest China. A mix of mostly Tibetan Buddhists and Muslims, the area, with its dramatic scenery inspired the fictional paradise of Shangri-La described in the 1933 novel “Lost Horizon” by British author James Hilton. Larry also gets down to an important issue facing U.S. investors — the threat of deflation. Read about his journey and his thoughts by clicking here.
Back to Volatility
Just when you thought it might be safe to buy-and-hold again … stock market volatility is back with a vengeance. 2015 is not even three months old yet — just 56 trading days so far in fact — and already the S&P 500 Index has risen or fallen 1 percent or more 15 times. Mike Burnick takes a look — click here to read more.
Out-of-Touch Central Bankers
You couldn’t ask for a more poignant, more blatant illustration of how out-of-touch central bankers are with the average man on the street than the one we got this week in Europe. Get Mike Larson’s views by clicking here.
The Week’s Hot News
Money and Markets columnist Mike Larson and others take a look at key financial and political events around the globe after the market close. Here are the week’s highlights:
The Thing About Knee-Jerk Reactions!
Markets are volatile — any hint of a rate increase sends shudders through the investment community and sends stocks tumbling. Every good report on the economy, such as those in regards to jobs, is met by speculation of an imminent move by the Federal Reserve to hike rates and by a bashing of equity markets. Should we be in panic over potential rate hikes? Get Mandeep Rai’s take on the situation by clicking here.
The Rush Toward Treasuries
Flush with cash, Japanese investors had a very big appetite for U.S. assets back in the ’80s. They gobbled up the storied Pebble Beach Golf course and prime Manhattan real estate. Japan also plowed billions of dollars into U.S. government bonds. Well, times have changed for Japan, but some things remain the same. Click here to read more on the subject from Mike Burnick.
Setting the Stage
Rock. Federal Reserve. Hard place. If you’re the kind of person who likes word puzzles, then there’s one for you. It perfectly illustrates the situation the U.S. central bank found itself facing ahead of this week’s policy meeting. What’s Mike talking about? Click here to find out.
The Global Currency War
The U.S. has joined the fight! Not a new shooting war, but a battle over money! Click here to read more from Mike Larson and learn what it means for you and your investments.
The Money and Markets Team