Ad Majorem.....Wealth Builders
August 25, 2015
The China's woes, (stock market bubble burst) the devaluation of yuan, falling outputs and growth (their stock market fell by 8% last Friday alone not counting the $1 trillion loss since June 15) has spooked Dow Jones (it fell by 1,000 points yesterday) and Asian markets. Our very own PSE lost P764 billion yesterday wiping out 2015 gains.
From Inquirer, PSE slides down below 7,000
PSE lost 6.7 % or 487.97 points, to close at 6791, its largest loss in a single day
Did you lose in the stock market?
Big losers were Ayala, Globe Megaworld and other blue chip stocks.
What did we say about equity markets?
Tuesday, August 25, 2015
Monday, July 13, 2015
China's Stock Market Crash is several times the Greek Problem
Ad Majorem.....Wealth Builders
The Greek default involving some 200 billion Euros pale in comparison to China's stock market crash which wiped out some $3.3 trillion of wealth. Some $2.6 trillion assets are frozen. The crash represents 40% of the total market China's stock market cap. The sudden increase in share prices last year may not have been based on stock fundamentals, but based on psychological perception
From Slashdot - Chinas Stock Market Hammered
From Fortune - Chinas stock market loss is equivalent to to 9 Greece economies
The Greek default involving some 200 billion Euros pale in comparison to China's stock market crash which wiped out some $3.3 trillion of wealth. Some $2.6 trillion assets are frozen. The crash represents 40% of the total market China's stock market cap. The sudden increase in share prices last year may not have been based on stock fundamentals, but based on psychological perception
From Slashdot - Chinas Stock Market Hammered
From Fortune - Chinas stock market loss is equivalent to to 9 Greece economies
Monday, July 6, 2015
Greece rejects IMF ECB terms of 2nd bail out? What will happen next
Ad Majorem.....Wealth Builders
July 5, 2015
Greeks (61%) vote no to 2nd bail out terms
While the Greeks can only withdraw $60.00 per day from ATM, and banks remained closed the entire week, they voted 61% no to ECB and IMF terms of 2nd bail out. Many can not comprehend what PM Alexis Tsipras and his left wing party are up to.
We do understand that the Greeks no longer want the prolonged hardships they are experiencing. Since the Greek govt failed to pay the $1.5 billion interest payment due at the end of June, effectively their credit is gone. No liquidity to be infused to the banking system. We should be wary when IMF says that failure to come to their terms would mean more hardships.
But what are the results/possibilities?
1. Results, - decline in the Euro stock prices and Eruo vs dollar and yen. Euro is only $1.10 vs the dollar; it can go lower.
While the Greece economy is only 2% of the total European economy the 200 billion possible default, can send ripple effect worldwide. All ready the equity markets are on the decline and there are indications of sell off.
Possibilities:
1. Debt relief for Greece
2. 3rd debt relief
3. Grexit?
4. Collapse of the Euro and possibly the world financial system
July 5, 2015
Greeks (61%) vote no to 2nd bail out terms
While the Greeks can only withdraw $60.00 per day from ATM, and banks remained closed the entire week, they voted 61% no to ECB and IMF terms of 2nd bail out. Many can not comprehend what PM Alexis Tsipras and his left wing party are up to.
We do understand that the Greeks no longer want the prolonged hardships they are experiencing. Since the Greek govt failed to pay the $1.5 billion interest payment due at the end of June, effectively their credit is gone. No liquidity to be infused to the banking system. We should be wary when IMF says that failure to come to their terms would mean more hardships.
But what are the results/possibilities?
1. Results, - decline in the Euro stock prices and Eruo vs dollar and yen. Euro is only $1.10 vs the dollar; it can go lower.
While the Greece economy is only 2% of the total European economy the 200 billion possible default, can send ripple effect worldwide. All ready the equity markets are on the decline and there are indications of sell off.
Possibilities:
1. Debt relief for Greece
2. 3rd debt relief
3. Grexit?
4. Collapse of the Euro and possibly the world financial system
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