Our editor is finishing up our regular Quarterly newsletter. This Newsletter offers some very timely topics, including some that are hitting the headlines right now.
In an article titled “Everybody is Happy” we discuss various readings from the University of Michigan Consumer Surveys that show sentiment rising in multiple areas. Just by chance the following poll, from Gallup was just released… totally different poll…same result…
An all time high for this poll!
In one of our more lengthy articles, former Prime Minister of UK, David Cameron speaks candidly about Russia and Putin. With activity over the weekend occurring in Russia, another timely topic! Cameron’s interesting takes on Putin and his actions were very insightful.
We offer three travel tips that may save you time, angst and money over the coming months as many of us non-regular travelers (present party included) hit the road.
The first tip, on how to help protect yourself when renting a car is from a recent and still pending situation earlier this year. Always glad to use personal experiences to warn and help others !
So we have teased the Newsletter enough, we will get it to the presses and publish it here soon along with our Video/Podcast review!
Technology giant Apple says it cannot sell products online in Russia because the rouble’s value is too volatile for it to set prices.
The company stopped sales of its iPhones, iPads and other products in the country after a day in which the currency went into free-fall.
The rouble has lost more than 20% this week, despite a dramatic decision to raise interest rates from 10.5% to 17%.
You Would Be Waking Up in Russia
Russia Rouble Devalued
Devoured by fellow currency markets may be more descriptive. On Tuesday morning USA time, Russia increased their benchmark short-term rate by over 6% (recall we are watching for .25% moves here in the USA) in order to stop their home currency, the Rouble, from falling. Ahhh… it did not work!
An upward sloping line in this chart (US$/Rouble) would mean your currency is losing value (devoured).
The scare here is Putin’s reactions, none of which are easy.
Leave Ukraine and stop sanctions (doubtful, too much pride loss)
Wait it out (look out recession and social unrest)
Slap a neighbor to distract (sure hope not, but possible)
Throw Putin out (yikes…ugly and disruptive, maybe)
This photo recently surfaced (purposely of course) and is not the face of a fearful 62-year-old leader.
We are not calling for a Russian conflict of any kind, this would be absurd and illogical. We are open to a possible drag on global economies due to Putin’s no easy/save face way out!
And on that note Happy Holidays…. being silly here, but wanting to acknowledge what is going on!
After working very hard over the weekend on our February review post and video, I decided a conflict update post today may be more timely. As you certainly know, the Russia/Ukraine conflict has heated a bit, as such we wanted to remind ourselves of actions and reactions.
Conflicts and Capital Markets
If history rhymes as it has in the past, capital markets will remain a slave of headlines until a workable resolution is seen. We would expect rumors galore, and a few nervous nellies bailing. We are slightly surprised by the muted reaction so far today, however this could change at any moment.
While definitely showing our age, we have experienced 911, several flash crashes, and the awful 07-09 great recession. Making it through without knee jerk reactions and sticking to our diversified allocations offered the best defense and offense. If opportunity presents itself we will indulge. Otherwise we will stick to our guns and let events unfold as they may.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, please consult your financial advisor prior to investing!
The is the vocal portion of J.K. Financial, Inc. a Dallas Texas Based Fee Only Total Wealth Financial Planning Firm. Founded by John Kvale, a Dallas Texas Fee only Financial Planner and Total Wealth Manager.
Q2 2017 Newsletter Podcast and Audio Review By John Kvale
Here are a few of the topics discussed in our new Podcast, Audio Video review.
Q2 2017 Newsletter Podcast and Video Review
Have a Great Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
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Posted in Economy, Interest Rates, Investing/Financial Planning, Market Comments, Newsletters, Video, World Political
Tagged China, David Cameron, Economic Cycle, Economy, Interest Rates, Russia, taxes