Well, our survey has different views included, as usually. The answers tend to be pretty structured though, so let’s see the results.
The theory, as previously explained by doitinvest.com in a previous investing blog, says that the interest rate cut executed by the FED should boost the US economy. By reducing the refference interest rate, FED actually reduces the borrowing costs of the US banks. This is because the banks attract an important portion of their cash through loans from FED at the official interest rates. obviously, the lower the refference rate is, the lower the costs for the banks, which in turn are encouraged to lend money at smaller costs. The ultimate beneficiaries in this lending chain are the final consumers/companies, which should benefit from borrowing facilities available at lower costs. Read more
Well, that is an interesting question I think – and it shares some of the reasons why the Detroit auto makers are now desperately looking for a bailout from the US government similar to the banking ones.
For a long time, OPEC countries though to be the masters of the moving universe. These highly power-concentrated countries have names which resound like a big mantra for some and a big curse for the others – Venezuela, Saudi Arabia, Iran etc. They base all of their fortunes on oil supply and the founding of OPEC was done to control the oil supply and to make them richer.
What are the investors turning to when they can’t buy shares anymore? Well, to gold and to raw materials – because these assets are counter-cyclical.
And of course, now its the moment when can sell futures on the gold price – if you think it is going down, or to buy – if you think that the investing crisis will continue for a while. Read more
Everybody knows that from the beginning of this month the oil price has breached a new record:
Oil soared by more than $6 a barrel to over $134 on Friday June 6, bringing gains in the last two days to $12 as the dollar weakened further on a jump in the jobless rate in the United States.