Well it's time to do my usually high level scrutiny into Wall Street and international investment. I got a lot of important interesting news with chart data to post here that gonna put everything in perspective on what's happening in investment and business. So,let's get started with some critical day facts combined with market analysis,include a few overall predictions. Ok. This is going to a nonsense report with facts,the markets stink for all the poor suckers who put their money on betting long game. Why? The Dow just proved that if you don't stay ahead of the markets in doing your research your going get thrown under a bus which is how this week started Monday. We seen many different factors players get involved in overall markets behaving the way it is doing this early week. So you ask what are those factors John? Well it started with OPEC crude oil production output decision by the Saudi Arabia which decided to keep a freeze on changes in light sweet crude oil output quota. This is point number one that started investors skepticism about suspicions that OPEC may reduce their oil output, compensate for a glut on global storage of existing refinery products.
Then you got Deutsche Bank corporate shakeup canning most of the existing corporate executives which sent yet another ripple through the European markets. Then add in Europe to everyone pains Brexit is going into full scale scalping consumers on huge price jump in costs of consumer goods average 7% increase in overall costs and the pain doesn't stop there. Euphoria in last week is replaced with sheer panic this week,trying to get out the sinking markets ship before everyone lost huge amount in their portfolios. Markets really reached a chilly sentiment on late Monday in Europe,America and international with a clear selling signals on charts data. Global reaction was mixed in Asia by the Neekii market marched uphill only to twice flip flop to current up 177.84 while others in Asia went completely opposite going downhill by average 40 points. American market investors got a big shock treatment with a new report that across the board corporate earnings declined by a whopping 12% average,then the Fed Bano started stirring the rate hike pot again sending fears through both corporate America and global investors that the Fed hiding a secret bombshell with a renewed double digit rate hike. People heard the saber rattling in the Fed Bank and said "Whoa buddy you gotta listen to this one they gotta be planning something big,Yellen got something up her sleeve that she just waiting to spring on all of us. We better play it safe zone." So,with everyone herd mentality they looked at the Fed,Brexit the British pound freefall in value combined with earnings statements and decided its bailout time before we get burned. It's a domino effect in the mindset of corporate and investors so instead of playing long ball with investment they looked,then decided bailout better do it now sell it. Canadian markets followed suit by playing follow the leader with mild sell off average 24 points since Monday. Apple,Google,technology companies all posted under the benchmark on both earnings and PIP performance index,chart data this quarter combined with Morningstar ratings as underperforming in every category. When you look at the underpins in the charts you can easily see why it's happened. You got to factor in GDP is down. 4% global which is pulling down both investment markets and corporate profits. The total surprise for this quarter is overall new homes construction is up by 2.3% on average combined with real estate home sales up by a little more this quarter 7% which is making a bright spot in the economy. Average income and saving did rise some this quarter but is still not keeping pace with inflation. While inflation report by the US Treasury is average 2.8% people are warned by market signals that this low numbers isn't going to last long,certainly not to end of 2016. So,these are some key market factors that are driving the economy,which is creating a global warning bell ringing on both corporate and market investment.
My prediction is we are going to see some more bright spots in the global economy but it's not enough this week to spark a reverse change in the current coarse of selling,bailout. We could however see some interesting news come from European Bank,Fed Bank,MLP managed leverage partnerships,plus news from major technology companies,energy sector that will give a bigger boost to the markets and economy. So,their you have it in a complete package,note; I didn't add major market data numbers as much as I usually do to save time on getting this up posted online.
Have Blessed Day,