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Another Brutal Monday

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Published : November 16th, 2015
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( 2 votes, 4.5/5 ) , 1 commentary
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Category : Editorials

One of the challenges of managing money is the (increasingly-frequent) need to translate non-financial tragedies into action to protect clients and, yes, profit from the broader world's horror.

So while most people react to events in Paris with stunned sympathy and/or impotent rage, the financial community is deciding what to buy and sell. And right now it looks like "sell" is winning.

Paris attacks: global stock markets braced for sell-off

(Telegraph) - Global stock markets are headed for a sell-off on Monday after the deadliest attacks to hit France since the Second World War left more than 100 people dead and dozens injured.

Stock market futures pointed to falls in Asia, Europe and the US, as bourses across the Middle East recoiled on Sunday amid warnings that the terrorist attacks in Paris could spark a renewed bout of volatility.

The Dubai stock market fell 3.7pc in afternoon trading on Sunday to a fresh 2015 low, while stocks in Saudi Arabia lost 2.6pc and Egypt's benchmark index dropped to a two-year low. Markets in Kuwait and Bahrain also fell.

Sustained oil price weakness has already prompted concerns about the region's outlook.

Analysts said the attack was likely to hit tourism in Paris, which could have consequences for the rest of France and Europe.

"The truly awful events in Paris could certainly have a significant negative impact on consumer confidence in the near term at least," said Howard Archer, chief UK and European economist at IHS Global Insight.

"There could also be an adverse impact on tourism in some European countries where people think attacks are most likely to occur - not just in France...Volatility should rise for Europe and for the Middle East."

Several things to consider going into next week:

First, the global equity markets were already correcting before the Paris attacks. Last week was the worst for US stocks since August, and the plunging price of oil combined with truly horrible numbers from major retail chains pointed towards more volatility in any event.

Second, in recent years real-world events have not driven the financial markets. Instead, the major central banks' reactions to events have become the key indicator for most traders. So Europe's turmoil might, perversely, be applauded by the markets if it ends the Fed's rate hike delusion and spurs the ECB to even more amazing feats of debt monetization. Crazy, but entirely possible in today's world.

And finally, this is the beginning rather than the end of a long process. The political/financial implications of Europe's immigration debacle and America's Middle East mess will take years to unfold. Elections are held at different times in different places, so the anti-immigration, anti-austerity, anti-euro tide won't fully come in until 2017 or beyond. In other words, lots more brutal Mondays to look forward to.

Data and Statistics for these countries : Egypt | France | Saudi Arabia | All
Gold and Silver Prices for these countries : Egypt | France | Saudi Arabia | All
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John Rubino is the author of The Coming Collapse of the Dollar (co-written with James Turk), How to Profit From the Coming Real Estate Bust (Rodale, 2003), and Main Street, Not Wall Street (William Morrow, 1998). A former Wall Street financial analyst and columnist with theStreet.com, he currently writes for Fidelity Magazine and CFA Magazine He lives in Moscow, Idaho
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All the public needs to realize is that the bleeding heart socialists, the bureaucrats and the nation's leadership that opened the borders to one and all.
That the same bunch fomented the hatred for the Syrian leadership for keeping a lid on the "rule of the clan".
Same thing for the former leaders of Iraq, Libya, Ukraine and other less well known countries.
Since when is the concept of "bringing democracy" to the world mean elimination of the leaders committed to stomping out the "rule of the clan"?

The "rule of the clan" is the greatest enemy of liberty.
Only idiots and fools would support any process that supports or strengthens clan rule.
Do you honestly think that sane sovereign individuals suddenly decide to kill non-combatants to make a political statement?
The leadership of the clan says, "you will ___________ (fill in the blank)" and the clansman does.
The clan is just decentralized communitarianism.
Each person is just an asset of the community and shall put community before self interest.
Kamikaze ring a bell?

Some wiser person that me stated something to the effect that, "the difference between a dogs and men is that if you bring a stray dog home, feed it and nurture it, it will not bite you".

Though I doubt any politician, bureaucrat or socialist can read beyond "Dick and Jane", a person seeking wisdom might take the time to read "The Rule of the Clan" by Mark S. Weiner, Macmillan Publishing. And no, I am not affiliated with any of the parties to the authorship, publishing or distribution of the book.

What I do fear is that what happened in Paris will be coming to theaters of operation near all of us.
This is how liberty dies.
But we can take solace in the soon to be seen rise of unbridled patriotism.
Just another form of "The Rule of the Clan", but on a regional or national scale.

Perhaps this will kill the abomi(nation) known as the EU.
But at what cost?
Didn't Nigel Farage warn the people of the EU?
At least the EU had someone willing to warn them.
Not so in the USA where the mental illness of political correctness prevents smart people from thinking.

Monday market activity will be interesting in a Chinese proverb sort of way.
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All the public needs to realize is that the bleeding heart socialists, the bureaucrats and the nation's leadership that opened the borders to one and all. That the same bunch fomented the hatred for the Syrian leadership for keeping a lid on the "rule of  Read more
overtheedge - 11/16/2015 at 2:01 AM GMT
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