Thursday, July 2, 2015

Losing money is ‘inevitable’ in 2015 as global stocks slip - from TRUNEWS

Forget Greece: Investors are losing money because of the slowing global economy, an international economic research group has warned.

While the world may be fixated on the fiscal and political challenges confronting Greece and the European Union, it’s the $US2 trillion ($2.6 trillion) loss in the market value of China’s mainland shares and tumbling sharemarkets around the world that should have investors worried and propel them into action, a report released on Thursday by Societe Generale Cross Asset Research says.

Analyst Andrew Lapthorne said losing money was “inevitable” for investors this year as high asset prices were constrained by weakening economic growth and falling company profits

“Losing the least amount of money may be the best source of success this year,” Mr Lapthorne said. “The slowing global economy is the elephant in the room.”

A range of indicators revealed the slowing, he said.

The MSCI World Index has fallen 4 per cent from its 2015 peak. Half of that fall occurred in June.
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