Larry Shover is a former derivatives trader turned portfolio fund manager with 30 years of experience in the financial industry. He is a frequent guest on FOX Business Network. He can be reached on Twitter at @LarryShover1.
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The year is new, datebooks are unmarked yet the market atmosphere remains disconcertingly similar to 2014. Equity markets turn to “free-fall mode”, followed by countless contrived explanations as to “why”, only to be quickly ensued by a vicious, unadulterated, bounce back.
Markets bask in reason and normalization – until we have such expect the energy complex to continue moving within a very broad and volatile trading range.
Relationships and correlations are fun to watch and ponder about however, over-thinking them could disable you from seeing the next bad data point or even the next crisis.
Make no mistake about it, the risks in Europe are many and, in some cases worse than ever.
Until now, the U.S. dollar has never been on the verge of rallying against every global currency, and in today's environment, the challenge is to see the horizon through a blinding blizzard of information.
Although a vote to “leave” will not mean immediate “cut-and-run” from the EU, it will indeed mean uncertainty and that could be just enough to knock over our fledgling global recovery.
Brexit was covered with the fervor of a hurricane and the hype of the super bowl: Living proof that U.K. citizens could decide the fate of the markets and your investments.
Britain’s membership in the EU is fraught with problems, but so is parting. There is a difference between having a closer union and better relationship; independence or interdependence.
The challenge for investors is always the wisdom in the answer – not simply the answer.
Spend less time thinking of the next crash and start preparing for its inevitability.
