Tuesday, February 18, 2014

The Weekly Outlook - Holidays & World Markets

***** It 's always more difficult to look forward after a long holiday weekend. Markets may be open in other parts of the world, but act more dependent on the reports and market action in the USA. I suppose that is not surprising from a world leader point of view, but if you consider that there are companies creating products and services in other parts of the world which should influence their own market action, it's is surprising how low in volume they really are. It's as if those countries' products and services are dependent on how USA is doing economically but I doubt if all products and services on the world open market are solely dependent on USA orders. So I think it more psychological.

People like good news and if they get bad news they try to see the good in it. People who don't listen to the news also have a better outlook and people who do think crimes are much more prevalent than they are actually.  That is proven but it does not answer why the markets are slow overseas when the  USA markets are closed. Obviously there are more overseas investors in the USA than overall in the world? Does that make any sense? In many ways it does

When we consider that we, here in the USA, are brought up with the obvious that the better opportunity lies with innovation and investments, then it makes sense that more Americans will take advantage. Not all people can become innovators, starters of good services or products, but all can in some level participate in the production of those through the markets. Therefore, we have more people individually or institutionally investing. The world marvels at how we do it, but that is what the good part of capitalism brings us: opportunity to be participant innovators and producers via our investments.

Banks don't produce much at all, they are lenders and collectors, therefore they can only give us low profits on our money; but companies can thrive or fail big or small (provided government does not interfere) so we can make it big or we can fail equally as big. What is nice is that the markets can afford us the opportunity to do so. In other words, if you wish to have it safe, you won't find it in the markets. Like this country, markets were not designed to keep us or our money safe; they were designed to give opportunity for all who wish to take the gamble that better things can be achieved.

We have the advantage that most people who emigrate here are looking for those type of opportunities. In fact the places where most people tend to go give them what they are seeking. Those who like to be safe tend to stay with the collective thinking and much like banks, those countries will not or cannot give those opportunities except to the very few; hence, and perhaps the reason why less activity is noted in world markets while we are closed for action.

Happy Trading, Living and Dancing

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