bonds

Investors are calling this risk “Lehman Squared”

As Eurozone turmoil resurfaces, Gemma Godfrey takes you through the under the radar risks and how to trade them.

The risk of Greece leaving the Euro is looming large over markets as a ‘snap’ election nears on Jan 25th. Threatening to reverse the austerity measures (spending cuts etc) required for bailout funds and remaining in the Eurozone, Syriza looks likely to lead any coalition government, if it does not win outright.

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How To Keep Your Head When Those Around You Are Losing Theirs

Learn the secret of how to make money while those around you are fearful, in under 2 minutes. Explanation in the text below, as well as advice on how to react to recent stock market moves.

How to keep your head when those around you are losing theirs.

  • Firstly get better informed by asking 3 simple questions: What’s really going on? Why is it happening? What could happen next?
  • Then work out how it could affect you with another 3 simple questions.

The recent turmoil in the financial markets is a great example. Investors seemed to be losing their heads. (more…)

Why Europe Is Doing The ‘Ice Bucket Challenge’ With A Glass Of Water

‘Grand’ gestures with minimal effects, Europe is doing the ‘Ice Bucket Challenge’ with a glass of water. Measures won’t measure up to much. Little movement in interest rates, not enough assets to buy and ultimately – you can put out as many cream cakes as you’d like, but if people aren’t hungry, they aren’t going to eat. The pressure is rising and more is needed. Europe has become a ‘binary trade’, and it is important to invest in those set to benefit regardless.

(Click on the image below for a quick video clip summary)

cnbc FMHR Sept 2014

2 Measures That Won’t Measure Up To Much… (more…)

Global Markets Are Not Prepared For The German Election

Top Story on Yahoo! Finance, published on the Front Page of Huffington Post Business, discussed on CNBC.

Investors are expecting an eventual reduction of support by the Fed, and Merkel winning the election this weekend. However, what stock markets have not priced in is the resurgence of Eurozone troubles into the headlines. So what are the options, why is this important and how will this effect markets?

[Click image below or this LINK to watch this as a TV Clip]

Screen Shot 2013-09-20 at 09.40.21

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3 Ways Cyprus is a ‘Game Changer’ for Europe

Published on the Front Page of the Huffington Post Business

With strong words to support the Euro, Mario Draghi, the European Central Bank President, quelled fears over the future of the Eurozone. However, the bailout negotiations in Cyprus revealed cracks in this ‘floor’ supporting the region and markets. A ‘Banking Union’ has been undermined, imbalances within the region magnified and individual systematic risk returned. Divergences within the global banking sector will widen but with the Fed likely to remain accommodative, bullish market sentiment may continue to overshadow concerns elsewhere. Nevertheless, this recent turmoil has highlighted that we’re far from an end to the crisis.

[Click image below or this LINK to watch this as a TV Clip]

cnbc march 20 2013

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From Rome With Love? The 3 Issues To Watch For Italy & Global Markets

This article made the Front Page of the Huffington Post Business

Political uncertainty in Italy could impact global markets, but provide a “fantastic buying opportunity.”

cnbc squawk

Like Jennifer Lawrence’s fall at the Oscars, unexpected but a chance to shine ‘comedically‘, Italy’s elections have shocked investors but provided attractive entry points to strong international firms, insulated from domestic woes (as well as offer up some funny one-liners from candidates). The possible loss of eagerly anticipated labour reforms, financial restrictions and market contagion provide shorter term sources of turmoil. However, existing reforms are likely to continue, market retrenchment is healthy and to be exploited for longer term opportunities.

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Quick Reminder of Europe’s Hidden Risk & Link To Quantum Physics

“The concern we have as investors is that there is a lot of risk out there that people aren’t really picking up on.  The fact that this bond buying program (“Outright Monetary Transactions”) is conditional means that it’s actually hard to police. How can you give a country that asks for help support, and then withdraw it and not expect the market to implode as a result…

“A physics quip to link to is Heisenberg’s Uncertainty Principle… the more you understand about a particle’s momentum, the less you know about its location. And you can say that about Europe. The more we understand about how fast things are deteriorating, the less we understand the full extent of how big the problem is.”

Gemma Godfrey, Head of Investment Strategy at Brooks Macdonald and CNBC’s ‘go to’ expert on Europe and financial markets, on Squawk Box October 2012.