Archive for the ‘News’ Category

When considering stocks and the economy, what always seems to come to mind is that of the United States of America. The country has been experiencing tougher times and as an effect been getting a lot of attention from all over the world. America’s economy has been constantly scrutinized. But are penny stocks and low cost microcap stocks exchanged only in America? Does the world’s economy solely depend on America? In a word, no. And most of my companions agree with me. Let’s take a look now how other countries have fared recently while America is busy with their own economic scenario.

In the car making and electronics capital of the world, Japan’s factories have made fewer goods. Makers of cars and electronic products have cut its company’s production due to a relatively low demand. The Yen has just set a record high of 79.75 and a stronger Yen suggests a stronger hit on Japanese exporters.

In France, strikes at oil refineries and fuel terminals over the plan to increase the retirement age have finally come to an end. The President refuses to back down despite strikes and protests that disturbed the economy. England’s economy is still getting its rhythm back as well. It seems that the country still seeks for more answers regarding inflation and unemployment. England’s economy is still fragile and unbalanced. In Germany, a fall of 2.3 percent of retail sales has been recorded in the month of September alone. The constant fall indicates that the country is still struggling economically.

In Hanoi, Vietnam, the inauguration of its largest chip assembly and testing factory has finally unfolded and the hope of every citizen for a better economy has increased as a result. In Dublin, the economy is hit by hidden loans and losses at Anglo Irish Bank, the most complex criminal probe in the history of Ireland. Despite tougher times by other countries, there are a few countries that remain stable and are experiencing an increase in the composite index. India, for example, saw its profit raised to 18.8 percent as it cut costs and reduced bad loans. The world is changing, especially the economies of different countries, but hope remains in the hearts of everyone.

Could new capital reserve rules on a global scale actually strengthen the penny stock markets, global indexes and more? Interestingly enough the mere mention of this caused noticeable increases in the activity among many global stock market indexes recently.

The proposal being discussed would require private banks to increase the capital which they are required to hold in reserve. The idea being that this would have the potential of reducing the adverse effects on the economy in any future financial meltdowns. To understand this is relatively easy because the banks would actually have significant reserves on hand as a buffer, as opposed to merely having it on paper so to speak. Although several global stock market indexes in China, the Japan Nikkei index, Brittan and France for example showed a positive response to this, there are already some people pointing to the fact that this is simply a small adjustment to a broken system.

The proposed changes would include raising reserves from two percent currently to gradually progressing to seven percent. The gradual part could take close to ten years before being fully implemented, yet the idea is now that things would begin to be phased in within a few years. Of course these proposals would still have to be ratified by the nations in the G20 so things are certainly far from changing. This slowness is effectively part of the broken system. Obviously investors are showing signs of responding positively to perceived positive news results, and the activity encourages finding penny stocks to watch within the various OTC markets and other investments through larger indexes which is after all good for the economy as well. According to some investors this type of change, or effort put forth into trying to change, in the financial sector is precisely what encourages market confidence and activity.

While this particular focus is on the global financial sector, it is worth noting that the United States has a four percent required minimum reserve. It should be interesting to see how this plays out in the near future as it should be considered as a positive step in working with the system as it stands now. This may not be enough change to satisfy everyone, but the positive news may spill over into some of the good penny stocks performing well because of the trickle down effect from the confidence on the stock markets to the business sectors.

This week bond prices fell on the word of another signal pointing to some slight forms of an economic improvement yet again. While at the same time several stocks helped the NYSE show a noticeable rise. When timing is as important as it is today in the penny stock markets, the news can seem to bring about a sense of exhilaration one day, only to be followed with news that explains it all away the next.

The speculation surrounding any reported numbers in the economy appears to be less believable according to some investors lately. For example it is common for people to perceive that the unemployment numbers are significantly higher than what is continually being reported. This in effect causes less optimism than addressing what is often utilizing knowledge of just what is included in those statistics, and to be facing the facts as opposed to what some consider being playing numbers games. However it can be worth it to take things into perspective before delivering a negative take on the current economy, the primary components of it and the stock markets in general.

While any good news should be seen as encouraging, it appears that quite a few investors are indeed anxious to react to more upbeat news and see if the penny stocks to watch can supply some form of positive reaction as well. The patterns over the course of the last few months have indicated that this is going to continue to be the trend in speculative investments such as penny stocks. Additionally the news can seem a bit mixed depending on the sources used. One likely component to this is the fact that the numbers indeed have been reported initially only to have the story change interestingly enough several times recently.

Investors notice this and are quite aware of it, yet when the market reacts positively it creates opportunities. These may not last too long as of late however they do provide signs that there is indeed some change as well as good news in the markets in consistent, however short lived bursts these days. These reactions in themselves may continue to look more promising to investors.