Formally established in 1993, the eurozone, often referred to as the “European Union,” is a political and economic union established after the ratification of the Maastricht Treaty by members of the European Community. It has since expanded to include some Central and Eastern European nations. The establishment of the eurozone provided for the creation of a central European bank and the adoption of a common currency: the euro. The idea behind the eurozone is to create a single geographical market where goods, services, and money can be exchanged freely.
Irrationality prevails in global stock markets and I believe it’s because of the actions of central banks. What’s happening with central banks and their involvement with equity markets not only is unprecedented, but it also will not end well.
Japanese Stock Market Topping 20,000
Just look at the chart below of the Tokyo Nikkei Average—a key measure of Japanese stocks…. Read More
The stock market has shifted its focus to the first-quarter earnings season. Based on early expectations, it will be an ugly quarter for U.S. companies, specifically the multinationals.
Expect Continued Disappointment for Rest of First-Quarter Earnings Season
A few weeks ago, we received some hints that the first-quarter earnings season would be disappointing after numerous downgrades were made on the U.S…. Read More
Will the U.S. Stock Market Crash in 2015?
With the broader U.S. stock markets trading near record highs, it’s not a big surprise to hear that most analysts, economists, and investors are increasingly bullish about the stock market. The last thing you’d expect to hear is someone talking about a stock market crash in 2015.
And why would they?… Read More
What to Know About Greece’s Potential Eurozone Exit (or “Grexit”)
Is anything more gripping right now than wondering how close Germany will let Greece get to the precipice before a crisis is averted at the last second?
Greece’s six-year recession came to a quiet end at the start of 2014. Since then, its recovery has been anemic. In 2014, the country’s economy expanded by 0.7%…. Read More
Strong Economic Data Points to Growth in 2015?
As 2014 winds down, many investors are wondering what the economic outlook for 2015… Read More will be. If you look at the U.S. economic data that’s been trickling in, 2015 looks like it could be a very strong year.
The U.S. announced strong third-quarter gross domestic product (GDP) growth of 3.9%. This extends the recent trend of strong quarter-over-quarter GDP growth; in the fourth quarter of 2013, real GDP growth came in at 2.4%; GDP in the first quarter of 2014 contracted 2.9%—though this was primarily seen as a result of the brutal winter; and in the second quarter, real GDP increased 4.6%.