For an investor in the stock market, this February could turn out to be the longest month ever. It is due to the lack of any meeting by central bankers of the FED, European currency reserve and the central bank of Japan and the uncertainty and mystery in which China wants to take its Yuan devaluations in future.
The January stock was the worst performed since January 2009 and was calmed by actions of the central banks who moved in to calm the markets. February will prove difficult since the only regulator could be China, which is notoriously secretive.
But the end of January was beset by lower interest from the FED, negative interest rates in Japan and the European Central Bank promising to issue a stimulus package. The negative interest rates in the world’s 4th richest economy were meant to boost internal consumption in Japan.
China has been beset by a slowing economy that has proved difficult to tame. Governments efforts to tame the falling economy has only led to more market uncertainties. Investors will be left to Chinese government misadventures for an entire month.
It will seem like the longest month thanks to Chinese deteriorating growth and the difficulty in getting clarity of the Chinese government intentions. It has led the month to be called an air bubble that can swing any side. Investors like James “Jim” Dondero have advised one to be very careful in your trades in the market.
The current market conditions have seen many get uneasy. They include the Bank of Canada and Swiss National Bank. The scrapped meetings have left the market too exposed.
James “Jim” Dondero says the hedge fund world is watching the current crisis keenly. They can’t afford to make mistakes they did in 2008 when everything went down. Mr Dondero is the co-founder of Highland Capital Management that is involved in investments.
Jim, as he is commonly known, is also the president of the enterprise. Jim has continuously changed the capital markets with certifications in CFA and CMA giving him the necessary knowledge in the field.
Highlands Capital has created a reputation as an experienced investor that makes a profit in all market sides. It was founded by Jim and Mike Okada in 1993. It has since then become one of the world’s largest hedge funds with $ 21 billion of invested capital. It is well known for its use aggressive use of high-frequency trades and its innovative team.
James Dondero has been in the credit market for the last 30 years. He is a graduate of the University of Virginia with a background in finance and accounting. Jim currently lives in Dallas with his three kids.