October 18, 2016
2016 Election and the Stock Market

The 2016 Election and the Stock Market

Over the past few months, the election and the stock market are topics of discussion on everyone’s lips. Now we are less than a month away from the big day. Despite much debate regarding how the outcome will affect different areas, we have yet seen how it will affect the stock market. With the United States as a key driver of the global economy, the result is likely to yield a reaction. No matter which of the paths we take, we can be sure after the election things will look very different. Overall, we should see a huge impact on health care, taxes, federal regulations, immigration policies, and more in the coming years. However, before we make predictions regarding this election and the stock market; let’s see what effect previous elections had on the stock market and global economy. Which combination is best? According to history, the stock market performed a lot better when the incumbent party won the election. Regardless of which party is that retains the seat, the election results helped the stock market to stabilize. With this being said, there is a slight swing for Republican Presidents but nothing too noticeable. While the decision of who sits […]
October 6, 2016

Why Deutsche Bank Isn’t Lehman

Over the past few days, I’ve gotten several questions about the Deutsche Bank dealings. The news of the bank’s woes is prompting some people to compare it the Lehman Brothers demise.  Is it a fair comparison? Not really and here’s why. Why did Deutsche Bank affect markets? With markets already seesawing from the current presidential race and the possibility of interest rates rising, the Deutsche Bank crisis is just another crashing wave in the sea uncertainty. For a brief moment, you had one of the world’s largest banks causing investors to agonize. They questions, would there be another “Lehman moment” sparking a new financial crisis? The scandal-prone German banking giant is about to face some serious financial penalties here in the states. The bank is in hot water for its role in the financial crisis; the bank’s problems are causing key clients to distance themselves. This has analysts worried about the firm’s financial health. The woes negatively affected the Dow Jones Industrial Average, causing a 200 point drop on Thursday.  A similar loss of confidence in 2008 with Lehman Brothers caused counterparties or major clients asking the cash-strapped firm for their money back. This triggered its collapse and the beginning of the financial crisis. […]