Market Volatility
There remains much fear in the markets. Much has been written about the debts of Western nations (read our recent blog) and instability. Recently, there have been a number of articles about China’s inflation, and also fears raised about the terrible tragedy of the earthquake and Tsunami in Japan.
Let me summarize much of what we have written recently. We are at the beginning of a bull market and to remain on the sidelines is to miss your change to prosper.
China
This is a marvelous story. You need only look around the streets of wherever you reside, and you will see prosperous Chinese visitors. The ever expanding middle class is not going to disappear.
There will be bumps in the road. There will be economic jolts there. But the economic miracle will not disappear.
Comparisons
Think about Europe after WWII. A devastated economy that with the aid of the Marshall Plan, became an economic explosion, and it remains a world economic superpower.
Think about Eastern Europe after the fall of the Berlin Wall. A very depressed area, with much disruption, yet now economic activity is ever increasing, and capital continues to flow to those countries.
Think about Japan which was totally devastated by their own stupidity and world takeover visions which prompted WWII. With US help, it quickly became a superpower, and 25 years ago appeared to be economically taking over the world. In spite of all of their population problems, and economic setbacks, they still remain the 3rd most powerful economy in the world.
China will have setbacks, and maybe inflation, and maybe instability, but China will not disappear, and the economic boom created by such a large population reaching middle class status will continue to have effects.
Japan
We sympathize with Japan in the current disasters wrecking the country. The pictures of the earthquake and the Tsunami are frightening.
Yet Japan is an economic powerhouse, and it has already started coping with these disasters. The irony of such magnitudes of disasters, is that the money and effort needed to rebuild and cope with the disasters produces a large economic stimulus.
The world is not crashing. Get on the bandwagon before you miss it.
By Larry Cyna
Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele.
He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section.
He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants.
He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm.
Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.
View all of Larry Cyna's posts.
It has a long way to go