The picture is completing fast, I believe the time is approaching to Move into Cash. Recent volatility in oil, iron ore and gold have chewed up all the...

Nicholas Forsyth

Market Matters

The picture is completing fast, I believe the time is approaching to Move into Cash. Recent volatility in oil, iron ore and gold have chewed up all the attention recently, but in my opinion I think international markets are close to a 15% correction. I read on Bloomberg this morning, that Hedge Funds (often active market players) are closing their doors at a rate not witnessed since the GFC as they fail to outperform a US Fed stimulated S&P500, that has risen 92% since October 2011, aided by the massive US Fed stimulus. Why I found this so interesting is the masses often get large investment thematic wrong, primarily due to Fear & Greed and I believe they are wrong now. The reduction in both hedge Funds and banks trading (basically stopped in the US and around the world after the GFC), has led to more illiquid markets and this by definition creates periods of significantly increased volatility when markets adjust to fresh circumstances, we have clearly witnessed this in commodities recently. (VIEW LINK)


Nicholas Forsyth
Nicholas Forsyth
Director
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...

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