← Back to All Videos

Lackluster Performance for Global Stocks

Blog Dec 14, 2012

As analysts have observed, Global Stocks have been registering performances that can be best termed as “lackluster” in the recent past and some believe that the dismal performance could in fact be proof of an “air pocket” in the market, heralding the onset of another global recession. However, there could be a different explanation for the same as well! It could also be attributed to the recent activism by the Central Bank that has forced the markets to deviate substantially from the economic fundamentals.

Over the last few months, central bankers have again widened the gap that separates the weaker fundamentals from the sky rocketing market rates.

Although it isn’t clear if the central banks consider it a favored move themselves, there are some central banks that are being relentlessly dragged into a monetary policy that seems to be far more accommodating. However, the phenomenon is not being considered as a very favorable one by many. Examples in this regard would be the fresh round of interest rate deflations in Korea and Brazil that took place this week. However, these interest cuts were not a result of good policy, rather, they sought to counter the forms of collateral damage that stemmed from unconventional forms of policies that were being pursued by the Western Central Banks.

The very fact that the Central Banks are “completely in” could perhaps herald some good news for all markets, especially for the short term. And the positives could be more apparent when compared with the “air pocket” phenomenon. However, investors are being advised to refrain from getting too carried away! There is always a limit to how long and how far the prices can actually deviate from the fundamentals. And this would more likely be the case when the central banks act without the support of government entities and do not possess adequate tools to secure sustainable and positive economic outcomes for global stocks.

Thumbnail Photo We believe that everyone deserves a properly developed strategy for financial safety.

Lynette Zang

Chief Market Analyst, ITM Trading

Sources & References In This Article

    Similar Posts

    Blog Jan 9, 2020

    REAL OR FAKE GOLD, BIG VS SMALL BANK DEPOSITS… Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 28, 2018

    ENTERING THE MINEFIELD: Is Your Armor Ready? By Lynette Zang

    Learn More
    Blog Nov 27, 2018

    RECESSION to RESET: What Happens Next? Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 21, 2018

    A GLOBAL THREAT US & China Clash of the Titans

    Learn More
    Blog Nov 20, 2018

    PRECIOUS METALS STRATEGY: Get the MOST from Gold & Silver. Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 16, 2018

    IS THIS IT? Corporate Buybacks vs ETFs By Lynette Zang

    Learn More
    Blog Nov 14, 2018

    ETF-YOU: Will You Get Screwed? By Lynette Zang

    Learn More
    Blog Nov 13, 2018

    THE FUTURE OF GOLD: As Economic Patterns Shift. Q&A with Lynette Zang and Eric Griffin

    Learn More

    Not Sure What Works for You?

    Our team has over a century of combined experience in guiding our customers to the best products is for their wealth protection and preservation goals. Call us today.

    or schedule a call

    Schedule A Strategy Session

    Get Your Free Protection Guide

    Stay Informed

    Receive the latest updates regarding the economy.

    Send this to a friend