Thought of the Day

There is scarcely anything that drags a person down like debt.

P. T. Barnum

the new government of Italy has some good ideas like lowering the income tax to 20% but the markets are not going to let them execute! it's a pity because as we are seeing with TRUMP lowering taxes boosts the economy big time.

From CNN

The populists envision a minimum basic income of €780 ($917) a month for the poorest Italians, funded by the state. The Five Star Movement said during the campaign that the basic income would cost €15 billion ($18.5 billion) a year.

Ratings agency Moody's warned last week it could cut Italy's credit rating -- already just two notches above "junk" status -- because the populists' plans risked weakening its fiscal position and stalling efforts to reform the economy.

From Bloomberg

Claudio Borghi, the euroskeptic head of the budget committee in the lower house, said in an interview with Corriere della Sera that Italy won’t be "hostage" to the markets.

Resultado de imagem para list of sovereign defaults

Apparently Make America Great is working at least in the markets!

Trump it's obviously erratic and he is not keen to be nice to the DAVOS man. He creates conditions for business to grow. In Europe politicians only care about Goverment programs, more rules, more taxes, more regulation , more government.

Despite that there are many good companies in Europe but not enough to make GDP grow because Government in many countries is a big part of the Economy.

From : The Daily Shot

6 reasons to buy China

1.They work more than us, much more
2. Japanese products after WWII were considered crap (Like Made in China now), that is going to change
3.The China market is not yet open to foreigners
4.China is the second Economy in the world , most investors have a zero allocation. that will change
5.They had a big selloff this year
6.They have a current account surplus and they have money, they are not in the same boat as the other EM, they don't need the IMF

put some % in China now. and forget about it !

The eurusd just gave a bullish sign for the EUR. 1,1792, normally when the USD is weak everything goes up. The American stock market is doing well with the Doillar strong if it gets weaker it could be better.

From Gary Savage service

No one has ever made their career in August, but plenty have lost it,” wrote Greg Coffey

In august markets are a bit more irrational than usual because a lot of people are off their desks. my advice, book your holidays also in august unless you are a long term investor and perhaps some good buying opportunities might come in the radar screen

if you are in holidays don't trade. i never trade anything outside the office. i had some bad experiences and now only make decisions with full information and rested.

Resultado de imagem para trading in the beach

We are in a Bull market soon we will have good surprises everywhere. how to play the Bull market. There are several ways to play one of them is to buy the strongest sectors and just have patience

Poverty is not socialism. To be rich is glorious.

Deng Xiaoping

why?

EM currencies are exploding vs the USD
The price of oil for a Argentinian, Turkish , Egyptian etc...is skyrocketing
less driving
recession in EM countries
Less consumption
Oil down

EM markets are big consumers of oil.............................

Price of oil for a Turkish driver. Of course price has been subsidized but that is a short term measure it will hit soon