Fundamental Reflections on the Forex and Global Markets

Good day everyone.

“Federal Reserve Chair reaffirmed its intention to raise rates this year.

Speaking at the Philip Gamble Memorial Lecture, University of Massachusetts, Janet Yellen said she expects a rate hike later in 2015 based on expectations of continued falling unemployment and fading economic headwinds.”

In other works they are giving a vote of confidence to the U.S. Economy. Hopefully this would lead to a rebound in the global economy as well.

You might have come across news that Li Ka Shing have liquidated all his assets and properties in China and Hong Kong and shifting them to the EU. He is the richest man in Hong Kong and he knows information that most of us don’t and knows that China is not where the growth is going to be in the next few years.

My take is that after the global capital shift to Asia and other emerging countries after the 2008 crisis, we are now seeing a capital shift back to the developed economies and this includes US and Europe.

I hope that Singapore can weather this shift as it has benefited from the shift of capital post 2008 crisis and at one time capital movement into our country exceeded that of London, New York and Europe’s combined. Imagine that?!!!

But now the tide is changing and I’m sensing it.

At the same time I also see a trend where some manufacturing are going to be brought back to US. I don’t think it will impact on China too much yet as its hold on the world as the factory of the world would not change so fast.

When there are shifts in the fundamentals, we also need to prepare for a shift of trends in the Forex market.

And long term trends which is in place now might reverse.

I have not seen it happening yet in the Forex market but when it happens and I see a strong case for it, get ready everyone, we might be in for a good trend ride where we can hold trades longer and make more Pips.

~ Ad Victoriam!!!