Why Do Foreign Markets Matter?

My early morning comments on this article are here, click on the image to listen to my dulcet tones, describing this article.

Now, there is no coordination among global central banks and governments.

If you are a HUGE investor, running trillions, then your concern is return over the very long run, as denominated back into your currency. How do you do this? Scour the globe, sell the ones that are overbought/don’t offer returns, and buy the ones that are underbought/do offer higher return profiles. There are more layers than this, I’m boiling it down to basics.

The takeaway? No coordination amongst central banks and governmental efforts to push down what? The denominator.

That simply means that the blue bell curve on the right remains flatter, higher volatility.

In turn, the path out from here is tougher. I didn’t say impossible (not financial advice), but the denominator’s volatility is logically going to make it more challenging. You don’t need to know anything about financial markets to see numeric truth.