Investment Markets Overview — Week Ending 11 July 2014.

Investor complacency, which has never been higher in respect of just about all investment asset-classes as measured by sentiment and volatility readings, took a hit this week thanks to concerns within both Portugal and Puerto Rica. Portugal’s second-largest bank, Espirito Santo, missed payments on commercial paper, sparking fears of further problems within the country’s banking sector and for the wider economy as Portugal tussles with a Debt / GDP ratio of 129%, the third largest within the Euro-Zone, whilst Portugal’s corporate Debt/GDP is at a nose-bleed level of 250%. Meanwhile, Puerto Rica’s debt, which ranks at No 3 of US states after California and New York has soared to $73 BN and more worrying is owned by about two-thirds of the US municipal bond fund sector. It took a turn for the worse this week as Puerto Rico’s Governor proposed changing the law allowing public utilities, such as the commonwealth’s main power authority, to negotiate with bondholders to reduce their debt loads. Ironically,after pumping $US Trillions into the financial system over the past few years, and thereby creating the morale hazard of investor complacency, the same central bankers now say they’re worried that it is increasing the likelihood of market instability, without a jot of responsibility in respect of their contributions to it.

11 July 14

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

Just as “crowd-funding” is transforming the means of raising business capital away from the banks, a new online business is reducing the cost of trading Gold and Bitcoins …..

Charts:
1.Indices Weekly
2.US Treasury Federal Budget Debt
3.UK Wages ONS V KPMG
4.Japan PPI V M2 Money-Supply
5.Commodity 1 Week Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

When volatility is low, risks gets hidden.”

Click Here to view Details of the full version of this Newsletter which includes full text and detailed Charts for each section

 

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