Five Factors That Have Investors More Spooked Than Ever

26.03.2018 • France

Simone Wapler – La Chronique Agora (France) –

And if peaceful investments had definitely been eradicated from the planet in favor of investments for adventurers or reckless?

São Tomé, its cocoa, its palm groves … An island on the Equator, in the Gulf of Guinea, more than 200 km from the coast. The island is one of the few African countries not to apply for visas. Released in 1990 from 15 years of communism (with however some sporadic relapses and coups), São Tome now opens to tourism.

The visa is to bipeds what the customs duties are to the goods. No visas and reduced formalities help tourism, as the lack of customs barriers promotes trade.

In practice, tourism is still very embryonic, non-existent concreting, cocoa, palm oil and coffee seem to be the main activities.

Obviously, cattle are not interested in cocoa

Obviously, cattle are not interested in cocoa

Discovered in 1470 by the Portuguese, the island was uninhabited, like Madeira. The Portuguese imported African slaves to cultivate sugar cane. Three and a half centuries later, oil deposits were discovered in 2011, but since then no barrel has been released. Whales and turtles are not disturbed.

An obstacle on the road to eternal growth?

El Pico, one of the characteristic mountains of São Tome

El Pico, one of the characteristic mountains of São Tome

Ha, but it’s true, I forgot, the financial markets.

São Tomé is reserved for very adventurous investors … In financial markets, there are more conventional investors. But again, it might be that these investors discern an obstacle.

Fall of the S & P500: it would be time, is not it?

What is troubling these investors?

The Echoes of the day identifies five factors that would scare:

  1. The trade war (customs taxes)
  2. Its effect on American consumers
  3. The recovery that is running out of steam in Europe
  4. The fall of technological values
  5. Tensions on banks (the interest rates they charge each other climbing, a sign of mutual mistrust)

In 2011 and 2016 too, the investors had the jitters, but that did not stop the markets from climbing the “wall of fear”. And this time?

As my colleague Nick Hubble points out , “the Telecom Italia bond, which matures in 2022 and is rated low by agencies like Moody’s and Fitch, is trading at 0.739%. US Treasury bills maturing in 2022 yield approximately 2.5%. “.

And as Bill Bonner says , everyone knows that markets are overvalued, that this is the longest rise in stock market history, that interest rates are at abnormal levels.

Everyone knows all this, but everyone ignores the only information that has value: when will happen the big reversal. [Editor’s note: Turning or not, opening a PEA now will allow you to beat booklet A if you buy good values ​​at reasonable prices. Our specialist will guide you to find the best opportunities: click here to find out more .]

In São Tomé, a land very well placed by the sea today would negotiate € 50,000 per hectare, according to the manager of a hotel complex. A local newspaper offers 55 hectares of land at “10 minutes walk” from the sea with three old buildings to renovate for 350,000 €. 10 minutes walk by a native with a machete (which replaces our walking stick) are equivalent to 20 minutes for a European in normal physical condition …

Could the financial bubble have contaminated this island too, even though credit is not really developed? In both cases, to buy land, you also need to have a lot of confidence in island property rights and in the future growth of tourism.

-Read more at la-chronique-agora.com (French)-

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