The ruble continues to demonstrate the wonders of firmness

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We live in very interesting investment world, which is characterized by constant flow not only of capital, but also volatility, which roams from currencies to bonds, from bonds to stocks, hard assets and back to the currencies. To identify and predict there is somehow some kind of regularity, it is extremely difficult, so the volatility creates nervousness and nervousness – the essence is the volatility. A chain, self-reinforcing reaction, and at some point the markets will lose control, and they collapse.
An orderly correction of U.S. stock indexes on the background of the fed raising interest rates, known as the “monetary conditions” would be a kind of medical procedure of bloodletting, which helped to calm global markets (especially foreign exchange) and return the status quo. However, the events of the last two-three overseas trading sessions talking, rather, about a very different – namely, the increased risk of implementing a very different stress scenario.
In his recent forecast of investment Bank Morgan Stanley recalled a very important definition of “bear market”. This is a market which in total index loses 20% or more, non-stop falling within 12 months. Apparently, the large transnationals in whatever was wanted to stop the seamless fit. Realizing after yesterday’s earnings reports from Amazon and Google, which continue the organic growth of course, they are trying to create at least increased volatility, known as the best other option traders.
In a falling market, apparently, after years of nonstop growth, a conservative investment portfolio managers simply forgotten how to work. But we all know that work in a falling market is always more risky than growing in the virtue of well-known reasons. In that market, which we see now, the ratio of “risk/return” is becoming more and more unattractive.
But fairly common words. The ruble continues to demonstrate the wonders of steadfastness – which is especially surprising against the background too rapidly conducted August and September. As of 12:20 GMT the domestic currency is trading at an interesting level 65,65 against the dollar and the morning strengthening trend gradually zamostochie – copying yesterday’s his picture at approximately the same time interval.
In tandem with the Euro, the Russian ruble looks just as steady at 74,66. Looks like today’s the day promises to be calm in any case, the macroeconomic calendar does not promise shocks. Meeting of the Bank of Russia’s key interest rate will likely also be held casually and without surprises. Given that geopolitics no days off, it is possible that the coming Monday we will meet in a very different mood. In the end, the crime story of the murder of the American-Saudi opposition journalist is no longer just demands, and in full voice screaming about the need to dot the “i”.
Vladimir Rojankovski,
“International financial center”