Volatility Is Still Low, But The Big Swings Have Hurt (SPY)
Tim Seymour: So far this year, even a huge portfolio like the SPDR S&P 500 ETF (NYSE:SPY) has printed a chart with peaks and valleys reminiscent of the Himalayas.
The sudden and sometimes contradictory swings have mirrored the shifting views of the larger economy and debt markets. Take a fresh look at the SPY for yourself:
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
CLICK HERE to get your Free E-Book, “Why It’s Curtains for the Euro”
Those are some big chops. Miss one or two, or be trapped in a trade when the market turns, and you are already wounded going into what looks like a difficult season ahead.
Macro credit concerns have been leading the dance. Will Greece default? Will the contagion spread to Portugal, Ireland, Spain or Italy, not to mention the Czech Republic, Hungary, Turkey, Russia, the UK, and/or the United States?
And then there is the global fundamental picture. We moved from fears that growth was too strong for prevailing interest rates to control, to fears that interest rates are too high and will choke off growth in places such as India and China.
Which is it? Is inflation out of control or has global economic activity hit the brakes?
Until the markets can come up with a consensus view on these questions, beware further choppy sailing.
Written By Tim Seymour From Emerging Money
Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.
About Tim Seymour: Tim is a founder of Emerging Money. He is a founder and Managing Partner at Seygem Asset Management, and The Emerging Markets Contributor to CNBC. Seygem Asset Management focuses on investing throughout the global emerging markets asset class. With a view that emerging and developing economies will continue to outpace the economic growth and advancement of developed economies, Seymour has devoted a career to investing in the dominant markets of tomorrow, today. Seymour’s career has included significant experience in both alternative asset management (hedge funds) and capital markets, having launched two hedge funds, and built the largest Russian broker dealer in the USA. Seymour started his career at UBS, focusing on international credit (cash, swaps, forex) in a specialized hedge fund group (New York). Seymour completed the firm’s training program after graduating with an MBA in international finance from Fordham University. Seymour received his undergraduate degree at Georgetown University.
Most Comments