The World is Shifting

Many changes are happening. In the US, the economy is recovering. In Venezuela Chavez opened the doors to change. In the Vatican the Pope is mesmerizing the people with his kindness and humility. Japan is preparing a bold plan to take its economy out of the jaws of deflation and in Europe the politicians keep messing things up.

The US economy is simply brilliant, atrocity after atrocity, it just seems that the economy is always able to heal even with suicidal politicians. In Venezuela, the opportunity for change is there, but might not be taken and some change could be good. The Pope is astonishing, is not like I believe that there will be an impact in financial markets, but honestly I feel much better knowing that there is a guy out there that is spreading some hope.

Now let’s talk about Japan.

The Governor of the Bank of Japan (BoJ) has crafted a bold plan to try to end the reign of deflation. I admire the Japanese, it’s just that they have a sense of inconformity that now and then just comes around and surprises us. You might say that for Japan to expand its monetary base is a suicidal move for an indebted nation, but honestly I just think that they have to do something about deflation. It will be hard for the Japanese companies to emulate the success in the 70’s and in the 80’s if they keep the economy in deflation.

What about Europe? Well it is incredible how much mistakes can professional and seasoned politicians commit in 3-4 years! The Cyprus bail-out proposal is just too bad to be true.

So what about markets? I still think that European companies are cheap, but you never know… I do think that some companies are poised to do well despite the absolute mess. In the US, the economy is recovering and you can see that there are some opportunities there too. I keep liking Santander stock in the banking sector. It is top class bank, and might just be that this year marks the rebound of the stock price. In the Oil & Gas I keep my Statoil selection, a little less positive in this sector, but keeping Statoil because of the Norwegian Krone. The research related to this two stock is available for sale in and I will be launching a new research regarding another sector soon.

Later on I will be launching a book with all my stock selections and with comments regarding their evolution.

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