Consumer Confidence Falls, Home Sales Slump, Auguring Trouble for Holiday Shopping Season
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With the holiday shopping season approaching, crumbling consumer
confidence and slumping home sales, could prove to be a bad combination
for retailers and the broader economy, according to BetOnMarkets.com’s
Michael Wright. The worry is that the labor market may contract further
and choke off the holiday spending that retailers are waiting for.
While
the news may seem bleak, some traders were hoping that this turn of
events would yet again force the FOMC to trim interest rates. While a
lower interest rate would be a great bonus for consumers with debt, it
can have negative effect on the American companies that have
international subsidiaries or imports from other countries.
A
lower interest rate has a negative effect on the currency of that
country, which means companies like Wal-Mart who import the majority of
the items you find in the aisles from china, will incur much higher
costs for those items, and will have to eventually increase prices.
Higher charges at the local store will squeeze spending budgets even
more, and that’s not taking into account the higher costs consumers now
face at the petrol pump.
Another major issue a rate cut unleashes, on the already battered consumers, is
inflation. In order to maintain inflation within the targeted band, the
FOMC increases or decreases rates, as it sees fit. Over the last few
meetings, the FOMC stated that the threat of creeping inflation was
preventing them from making cuts. Obviously they decided that the risk
of higher inflation was worth it last time. Will the FOMC take that
risk again, well your guess is as good as mine.
While there
remain a lot of questions to be answered about the current state of the
markets, and potential market direction, the one area that is now
becoming clearer is that we will possibly be experiencing an increase
in volatility in the SP500.
This means that while the market direction won’t be known, any move will be overreacted. The main reason for this is that most traders have been very skittish and get out the moment more bad news hits the market.
For
that reason, it would be in the best interest of the trader to use the
‘Up or Down’ option available at BetOnMarkets.com. With this option, a
trader will profit if either of the triggers, which he sets on either
side of the market, gets hit.
A Trade on the SP500 with a 19
days term, and 50 points of the spot up, and 50 points down, will
potentially return an ROI of 10%.
- THE END -
Contact Details:
Email: editor@my.regentmarkets.com
Tel: 35621316105
Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street
Douglas, Isle of Man
IM1 2AG
Betonmarkets.com
is the leading fixed-odds financial betting website. The website has
processed over 10 million bets since inception in 2000, and generates
annual turnover in excess of US$ 100 million. Betonmarkets offers a
wide range of fixed-odds financial bets on forex rates, stock indices,
and international stocks.
Betonmarkets
is operated by the Regent Markets Group of companies. Regent Markets is
affiliated to the Regent Pacific Group, a Hong Kong-listed investment
group. Regent Markets has offices in three countries, and holds
bookmakers licenses in the Isle of Man, the UK, and Malta.
Fixed-odds
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Fixed-odds bets are also known as binary options,
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BetOnMarkets Bet Types:
One Touch Bet: You would buy a one-touch bet if you believe the market will touch
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No Touch Bet: A no-touch bet is the opposite of the one-touch bet. You would buy a no-touch bet if you think the market will never reach a certain level within a specified range of time. Example: [Pays 100 if the FTSE does not touch X between today and date T]
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Expiry Range Bet: You believe that the market will be between two distinct levels (high and low) on the expiry date. Example: [Pays 100 if the FTSE closes between X and Y on date T]
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Up or Down Bet: You win if the market touches either of two pre-determined barriers before or on the date the bet expires. Example: [Pays 100 if the FTSE touches either X or Y between today and date T]
Double Up Bet: A Double Up bet pays two times the premium if the market rises above a given level between the time of purchase and the close of trading. It
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Double Down Bet:
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About the Author
Name: Mike Wright
Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street,
Douglas, Isle of Man
IM1 2AG,
British Isles.
Phone: 35621316105
Email: editor@my.regentmarkets.com
URL: http://www.betonmarkets.com
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