Investing for Beginners , investing Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.
Benjamin Graham

Foundation of the Europe’s Financial Market

2011 Dec 12


The key question in Europe now is how European Union will look after few years from now. This question is the most important at these days for all the Europe and may have affect to the entire world. 


The thing is that the world always balances on the edge of peace and storm and no one can be sure when the balance is going to be moved. The problem now is being shifted from financial to political and this is bad thing because problems of the financial market may be pushed to second plan.


The sensitivity of financial problems was always in centre for the Europeans for the many hundreds of years. The presence of the European Union brought a lot of stability in this region or maybe we can say to entire world as both world wars had started because of Europe. 


The stability of Europe’s is the foundation for whole financial and investment markets, as well for all the economies and normal development of the other regions. And the current events with UK are the problem for EU’s stability.


UK is the one of TOP countries in Europe according many criteria (financial and not) and should be an example for other countries; a good one. And now UK position is selfish and ignores the wider possibilities over long term. 


The position of UK is understandable, to protect London as a financial centre which is one of few main centers’ over the world and would be painful to lose that. London Stock Exchange represents the biggest investment market in whole Europe and many investors in the region are happy to have such investment centre. Stocks, bonds and other investments can be traded via LSE. 


Of course stable future of Europe is more important than one financial centre, but is it really impossible to succeed both goals at the same time or it is just a stubbornness of some politicians? Well, politics is a complicated matter and a lot of interests are mixed in one pot.


The another problem is that people of European countries think more nationally than globally and if referendums will be put as a key tool for answers of Europe’s future then Europe may fall apart very quickly. There is no common thinking like in States of US and every Europeans thinks very locally.


It is hard to predict the movements of investment market and interventions of ECB when the future of foundations is still uncertain, and the best portfolio of securities should maintain very good regional investment diversification


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