Wild New Year

For those investing and trading, this has certainly been a week with so much drama.  The falls that we are seeing in this first week of the year is what you would normally see in a whole year.

The equity markets are spooked; it is very convenient for the West to blame China for everything that goes wrong.  The Americans, the Europeans and before them, the Japanese – they have all done Q E (quantitative easing) with their economies for a very long time.

This is a new development for China. Obviously they are not as well versed as the other well-developed countries as far as regulation and compliance are concerned. It is a steep learning curve.  Here again, because of the enormous reserves at their disposal, the Chinese have enough arsenal to carry on life without too much trouble !

This is only the first week; we have another 51 weeks to go.  This is going to be a very volatile year.  So for those investing, take care.  Guard what you have; do not listen to glib salesmen trying to talk you into buying something exotic you don’t understand.

If it does not make sense and you don’t understand,  STAY AWAY. Walk away.