Q: What is the outlook of the financial markets next year?
A: The troubles in the financial markets have started. There will be a lot of turmoil in the financial markets next year, eventually leading to some sort of crisis, perhaps even a full blown crisis.
Some emerging-market currencies are already having problems this year, and this is spreading to bigger things since this is the first time in history that all the major central banks are printing huge amounts of money.
My main concern is that the US Federal Reserve doesn’t know what it’s doing. It does not know what it is going to do next as interest rates are going to go higher so it has to start withdrawing huge artificial oceans of liquidity. When that takes place, 2016 and 2017 are not going to be fun years because these guys have made mistakes and they have to correct it.
To what extent will Asean economies be affected by the volatile financial markets?
The region will fortunately be in better shape than most as they’re oil-producing countries as well as agriculture-based economies. It is the US and Europe that will be impacted the most as they are in worse shape than most.
Asean has savings, no big debts and convertible currencies. However, when Asean’s main markets have problems, there will be problems too for Asean companies. We’re going to know something is wrong although we may not suffer as much as Italy did but the effects will be there as Europe, the United States and Japan are major customers of Asean exporters.
read more @ http://www.thestar.com.my/Business/Business-News/2015/09/19/Gearing-up-for-the-turmoil/?style=biz
Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.