About

Rajveer Rawlin received his MBA in finance from the Cardiff Metropolitan University, Wales, UK. He is an avid market watcher having followed capital markets in the US and India since 1993. His research interests includes areas of Capital Markets, Banking, Investment Analysis and Portfolio Management and has over 20 years of experience in the above areas covering the US and Indian Markets. He has several publications in the above areas. The views expressed here are his own and should not be construed as advice to buy or sell securities.

Featured post

The Case for a Global Recession in 2017 and Beyond – The Obvious Evidence

[ View the story "Recession Upcoming?" on Storify ]

Ad

Thursday, 8 September 2016

Chart of the Week - Libor Spikes Vs S & P 500

The chart of the week is courtesy Bob Hoye via SafeHaven and looks at spikes in the 3 month LIBOR rate vs S and P 500 performance. Any sustained spikes in LIBOR in excess of 25 basis points in the last year has often resulted in significant stock market pull backs as seen in August 2015 and February 2016. There is usually a lag of about 2 months for the sell off to occur. We had a recent LIBOR spike about 2 months ago and should see a stock market pull back soon. More importantly LIBOR has entered a clear uptrend this past year and that is problematic for risk assets long term:

Libor 2015-2016

No comments:

Post a Comment

Offers

Stock Market News

World Indices


Live World Indices are powered by Investing.com

Trader Talk

An Amazing Forex Product

Market Insight

My Favorite Books

  • The Intelligent Investor
  • Liars Poker
  • One up on Wall Street
  • Beating the Street
  • Remniscience of a stock operator

See Our Pins

Trading Ideas

Forex Insight

Economic Calendar

Economic Calendar >> Add to your site

India Market Insight

Refurbished MacBooks

My Asset Allocation Strategy (Indian Market)

Cash - 40%
Bonds - 20%
Fixed deposit - 20%
Gold - 5%
Stocks - 10% ( Majority of this in dividend funds)
Other Asset Classes - 5%

My belief is that stocks are relatively overvalued compared to bonds and attractive buying opportunities can come along after 1-2 years. In a deflationary scenario no asset class does well other than U.S bonds, the U.S dollar and the Japanese yen, so better to be safe than sorry with high quality government bonds and fixed deposits. Cash is the king always. Of course this varies with the person's age.