Trend: Interdependencies in global markets often cause unanticipated ripple effects that can make or break investors.
Cesar Zambrano at Forexfraud.com describes the playing field in globalized markets below.
The turbulence in our global trading markets witnessed in May appears to be abating. Volatility measures have dropped nearly 50%. Traders, forced to delay their vacations to oil-stained sandy beaches on the Gulf, are staring at their screens pondering their next medium-term moves. It’s time to catch our collective breath.
A financial crisis in the not too distant past could generally be confined to the economic region of its origin. However, in today’s interdependent world of globalization, a debt problem in Greece can immediately send shockwaves through every trading market around the globe. Technology and innovation have compressed reaction times from months to mere seconds. An idea in Hong Kong appears the same day in London. News travels in nanoseconds, now aided by the Internet and “24X7” cable news channel services. The trend is pervasive and offers opportunity for the savvy investor.