Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Shiners. When I was asked to choose a share most likely to rise in the Santa Rally, I was tempted to choose the following company to invest in.
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Comments
wildrides
Looking for an AIM tiddler booze stock ? …………… Distil is a belter.
Jimbo
Sorry Malcolm, but I really have to pull you up on the following:
“and I expect profits to rise nicely, now that most countries are at last starting to shrug off the lack of growth first caused by the 2007-8 world slump.”
If this you truly believe this to be the case, then I’d appreciate reassuring answers to the following questions:
1. Why are interest rates now negative in Switzerland, Sweden and Denmark?
2. Why is Mario Draghi about to double down on unconventional monetary policy, i.e. QE, in the Eurozone, and potentially end up moving to negative interest rates?
3. Why is the Federal Reserve doing/saying all it can to water down the impact of a lousy measly 25bps prospective interest rate rise in December, i.e. “Don’t worry Mr Market. Even if we do raise, we’ll take a really long time to raise any further afterwards, if we ever do.”.
4. Why is there now USD 60 trillion more debt in the World than there was in 2008?
5. Why is the ratio of Global Debt to GDP now at 350% and rising?
6. Why are the prices of industrial commodities such as oil falling through the floor?
Questions 4 and 5 should go some way to answering question (3). Incidentally, with a BIS-estimated USD 9 trillion carry trade potentially waiting to unwind, the following chart gets more interesting by the day, and is most definitely related to question (6):
http://www.bloomberg.com/quote/DXY:CUR
I believe it’s not made it through 100 since the late 1990s… The higher it goes, the more stress it causes to those countries and corporations who borrowed in USD, and are now struggling to repay the loans in the current low growth climate. I am sure 2016 will prove to be an interesting year…
Cheers.
Jimbo