We are at this time of the year again when everyone holds hand’s and decides to work together to fix the problems in the United States (Kidding). I find this election to be one of the most important in not only the history of the United States, but also the world.
We have arrived in a completely new world with unique complexities
The decisions that the United States makes, and even Europe or China, now not only affect their own countries, they effect the whole world. The world economy is so intertwined that whenever one country has a slowdown it can be felt across the globe in another.
I will give you a simple example about how this works. The United States is the 2nd largest economy behind Europe and the largest consumers in the world. Citizens of the United States devour products, food, and services at an alarming rate.
The question is where are these products, food, and services coming from?
Ever turned a fruit around and taken a look where it’s from? I’m willing to bet most of those fruits are from Latin America, how many times have you called a calling center to find a man (or woman) with an Indian accent whose name is Brad Pitt? And what exactly isn’t made in China anymore? I just found a made in China sticker growing on one of my teeth.
The crisis in Europe and the ripples that it sends throughout the globe affects the way that you do business. The new South American Union (UNASUR) is sure to be the European Union of the South once their leaders get their act together. The Middle East, Africa, Asia, everyone is creating monster markets.
I am neither democrat nor republican, I choose to invest and live overseas because I find the policies of the United States to be getting worse and worse. With the implementation of quantitative easing after more quantitative easing, there is going to be a moment when the economy will choke because there is no more money to “quantitative ease”.
Day Traders have nothing to worry about until the election
Congress is in a stale mate and until things change we will be free to make a living day trading. Democrats have the ideology that speculators are the problem, specifically oil speculators like myself. Many have gone on record saying that we are the ones that drive prices higher which affects the gas prices at the pump which in turn, drives up prices for middle America.
Republicans on the other hand don’t think that oil speculators are the problem and instead focus on solutions like looking for more oil or looking at the viability of constructing an oil pipeline from Canada to the good ole boys down in Texas. And we wonder why Texas is doing okay in this recession?
Click here to educate yourself about the pipeline
So the question is do you want the party that proposes potential regulations against day trading or not. It will remain to be seen how far these regulations go (if put in place) as speculating on commodities is completely different than speculating on the Emini S&P 500 for example..
In reality, the Emini S&P 500 is an imaginary market that only has value because there are millions of traders around the world that say it has a value. The actual market is moved by the index which is moved by the buyers of the sellers of the stocks that are on that index, the top 500 public American companies respectively.
In either scenario I am still personally concerned with the health of not only the global economy, but most notably the United States & European economies. According to the numbers of the CIA fact book, the US & Europe have roughly 39% of the world economy. What they don’t mention is how involved those economies are in other emerging economies.
In other words, how many business from Europe & America do you think are investing in places like Brazil (6th largest economy), China (3rd largest economy), India (4th largest economy).
Either party is going to have to make tough decisions in order to turn things around. One of the reasons I have decided to move to India is to look at the prospects of day trading in the Indian markets, free and clear from US government regulation. Just want to note it will be all above board.
Even with the current problems that the United States and the world faces I still consider now to be a great time to start day trading. Should be interesting how things turn out.