Forex Signal February 14, 2017
February 13, 2017
Forex Signal February 15, 2017
February 14, 2017

Overlooking the noise

Sometimes, the financial markets very much look like high school. What I mean by this is that there is always drama to deal with it seems, and sometimes the crowd gets a bit out of sorts - well beyond anything that is necessary. I cannot tell you how many places I see this at the moment, but I will try to come up with a few obvious examples, and perhaps what you should or shouldn't even begin to worry about when it comes to these issues.

First, let's take the United Kingdom. There have been a lot of reports about how the British were in serious shit after the so-called "Brexit." Really? Well that hasn't seemed to happened has it? Yes - I know they haven't actually done it yet, but there are a few things that you should keep in mind longer-term when all of this panic continues to flow through the markets. The UK isn't going anywhere. Pricing in its collapse by Forex traders will someday - and possibly already - be one of the greatest career making trades to happen. What I mean by this is that the Pound is incredibly cheap from a historical perspective. Not only that, but I personally think that the British may dodge a huge bullet. The European Union is a train wreck under the best of circumstances. It is dying. It won't be here - at least not in its current form in ten years. I am willing to bet that the British will look like the smarter group once things are done. The UK is the 6th largest economy in the world. It will be fine.

The other thing that is being blown way out of proportion is Donald Trump. I happen to live in Ohio, a place that is always a 'hotbed' of political discussion in America. It is one of the 'must win' states for Presidential candidates, and I knew Hilary wasn't going to win here. Trump's election should not have been a surprise. However, the real problems arose after the election, when a lot of people in the markets have been preaching disaster. The NASDAQ, S&P 500, and DJI all suggest otherwise, but to listen to the pundits, you would think he was one step away from melting down the global economy. Clearly, the death of democracy in America has been a premature thought. I feel it is only a matter of time before the rest of the world sees that everything is fine. It then that you might want to step aside. Until then, the usual economies continue to lead the way....the US, UK, Japan, and Germany. Besides, where else are you going to put your money?

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