July 22, 2012
Weekly Market Outlook
By Geoff Bysshe
According to a recent study conducted by James Henry, former chief economist at consultants McKinsey & Co, it was revealed that somewhere between 20-30 trillion dollars is sitting in off-shore tax havens. This huge sum is controlled by .001% of the world population, or just 92,000 people. This cost the countries of origin a combined 300 billion in lost tax revenue. Even more importantly, removing the money from local economies has not only major economic impact but a bigger social cost as well.
So while this fortunate .001% has mostly done a better job than Virgil Starkwell (the failed bank robber) taking the money and running, remember that it did not do much for Khaddfy. The frequency of financial bubbles and this offshore stockpile of assets with much of it accumulated thru ill-gotten gains goes hand in hand with a malfunctioning global economic environment. Adding to this picture are huge stockpiles of US corporate cash sitting idly in overseas banks and there you have much of the world’s wealth non-productive.
However, even with the above imbalances and the prospects of a slowing global economy, the US Equity markets are holding up quite well. Friday’s selloff was on light volume and the up days registered accumulation days in volume twice this week as outlined in the chart below.
The overall composite of market indicators is more positive this week the market internals improving.
Due to a heavy travel schedule there will not be a video.
Have a great weekend
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