Dramatic Drops and Short-Covering Rallies Illustrate How Capital Waves Lead to Profits

Filed in Gold Prices, ubs by on May 11, 2010 0 Comments

The Greece rescue package is signed and sealed, but is still far from being delivered. It took three tries, but this time global investors believe the EU got it right. Investors celebrated yesterday (Monday) with a relief rally that touched virtually all of the world’s key financial markets – and that served as a strident counterpoint to the near-freefall that gripped the U.S. stock market on Thursday. So is it finally time to shelve our fears of financial contagion, meaning the financial shocks that start with one nation or market and spark a conflagration that spreads through interdependent entities in plague-like fashion? Definitely not. In fact, hang onto your hats: We have just entered the brave new world where a butterfly flapping its wings in China can fan a market fire on the other side of the world. There are more contagions to come. But because of forces known as ” capital waves ,” the same heat that burns some investors can also generate substantial profits for those who understand how to position themselves. To understand how capital waves bring profits, please read on…

See the original post:
Dramatic Drops and Short-Covering Rallies Illustrate How Capital Waves Lead to Profits

Tags: , , , , , , , , , , ,

About the Author ()

Leave a Reply

Your email address will not be published. Required fields are marked *