North Korea

September 29, 2015

North Korea was mucking around with launching a rocket recently (presumably with only a smallish warhead in it) and when it failed to launch, the investment markets rallied.  The theory is – we aren’t going to get blown up today, lets celebrate and invest some money!!  We did giggle a bit about it here, but then we realised it’s not a bad sign.

At the other end of the scale, you can sometimes detect the end of a run in investment returns when the latest news item no longer has an effect. An example is when share markets have done really well, then a “good news” item appears (such as surprisingly lower unemployment figures), but this then fails to make the market go higher. This could signify it’s time to expect a downturn.

Conversely when we have had a rough time and the bad news doesn’t drive markets any lower, we may well be at an end of the downtrend. All the doom and gloom is factored in and the only direction the market can go is ‘reverse’.

So the fact is, good news (however far the definition is stretched in this case ) gives the markets confidence. If it wasn’t, we could be in trouble, again.

Please reload

Featured Posts

Sad Use of The Word ‘Perfect’

June 22, 2017

1/10
Please reload

Recent Posts

May 7, 2018

August 17, 2017

February 14, 2017

Please reload

Archive
Please reload

Search By Tags

I'm busy working on my blog posts. Watch this space!

Please reload

© 2015 by Pearman Financial & 

  • Facebook Clean
  • Google+ Clean
  • LinkedIn Clean