Tag Archives: Tom Brady

­­Our Two Cents – Week of 1/16/12

While we saw Tom Brady lead the New England Patriots to an outstanding playoff victory, we watched world leaders attempt to continue restoring economic confidence through consumer spending, market performance and fiscal activism.

In the U.S., economic optimism continues to rise as America displays more signs of employment and consumer confidence. The National Retail Federation has predicted that U.S. retail rates will growth 3.4 percent to $2.53 trillion in 2012. NRF President Matthew Shay said Americans should be confident about consumer spending—“Our 2012 forecast is a vote of confidence in the retail industry and our ability to succeed even in a challenging economy. Over the last 18 months, retailers have been on the forefront of the economic recovery—creating jobs, encouraging consumer spending, and investing in America.” Additionally, U.S. retail Forex capital grew by $3 million in November 2011. Though the growth is surprisingly smaller than October, which grew by 30 million, experts believe lower volatility and the year-end slowdown might have contributed to the diminished growth.

Throughout the world, last week began with booming markets. The Italian market increased more than 2 percent, and France’s CAC-40 Index posted a bump of a little more than 1 percent. Even one of the weakest world markets—the Shanghai Composite—jumped more than 2 percent. Unfortunately for Europe, market confidence reversed by week’s end. Ratings services Standard & Poor’s downgraded credit ratings of nine countries—including Italy and France—as political and financial leaders continue to devise solutions to the euro crisis. The Jan. 13 downgrade resulted from the December warning that S&P might decrease credit ratings of 17 nations because politicians had been moving too slowly with reforms for the crisis. As a result of the news, European leaders have vowed to focus on “progress” to restore economic growth. Italian Prime Minister Mario Monti and European Council President Herman Van Rompuy met in Rome Jan. 16 to discuss economic restoration. Monti said S&P applauded Italy’s fiscal acts, and Van Rompuy said he believed leaders should refocus their aims by establishing “sustained, committed” efforts. Southeast from Italy in Greece, officials and residents discussed a possible return to the drachma if the country can’t save its membership in the euro zone. According to polls, nearly 80 percent of Greeks say they want to stick with the euro and avoid reinstituting the country’s former currency. Prime Minister Lucas Papademos has vowed to do whatever it takes to keep his nation in the euro zone.

 

 

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

While Tom Brady of the New England Patriots was throwing incredible numbers on the field Sept. 12 against the Miami Dolphins, the world financial markets continued to fumble. Here’s the highlight reel of top headlines from last week:

Federal Reserve Chairman, Ben Bernanke, is expected to unveil some options aimed at spurring the economy, including what’s being called “operation twist” – a move where the Fed would sell short-dated Treasury debt and use the proceeds to buy long bonds. The act is unusual—though it helped a bit in the 1960s—but many feel the economic needle wouldn’t move positive without the help of Congress and action on President Barack Obama’s jobs plan.

Beneath Capitol Hill, it’s no surprise Americans are depressed about the economy as results from a recent survey reveal factors such as high debt, fear of inflation and worries of falling home prices as some of their concerns. According to a recent study by CardHub.com, Americans in the second quarter of 2011 accumulated a whopping $18.4 million in credit card debt – 66 percent more than the same quarter in 2010 and 368 percent more than the second quarter of 2009. The study also said Americans would end 2011 with about $54 billion more in credit card debt than they started with at the beginning of the year. As plastic continues swiping in the U.S., Europe’s debt crisis continues swooping. The European Central Bank and other central banks opened new lines of credit to organizations for longer periods than before, hoping such an initiative to jumpstart Europe’s financial flounders. All eyes will be on Greece this week for the next chapter in the country’s fiscal crisis as it continues teetering on the brink of default. With all the toil and trouble in the markets, many investors are wondering what to do with their portfolios, including seeking diversification and investments not correlated to the stock market. Perhaps they should explore mimicry.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.