CymorFund blogs and newsletters are essential to keep on top of the market outlook. Cymorfund keeps subscribers informed about the equity markets, the commodity markets, gold stocks and precious metals, demographics, market trends, economies and economic activity from key parts of the world. We interpret and provide information that is essential for investors.
Whether it is the US economy, the Canadian economy, events and trends in China or elsewhere, or specific sectors in the investing world, our articles are timely and informative. We interpret key trends and provide insight on the following topics and more.
Equity markets are established in most major economic centers of the Western world and established economies. They range in size from markets in New York and Hong Kong and in many places in between. They are the places that companies list their shares in order to become ‘public’ and to be able to raise funding from the public. Most investors invest in mutual funds or ETF’s who gather the investments of many investors, and then invest that money in the equity markets.
Equity Markets are different from the bond markets, or the currency markets or other markets such as derivative markets. The stock markets are place where shares of public companies, or sometimes a right to buy shares or convert to shares, are listed. Investors, whether directly or through some other method buy and sell those shares.
Commodity Markets are forums where people and institutions buy and sell everything from pork bellies to physical deliveries of gold and silver. There are about 50 such markets around the world, and the volumes of trading on these markets are ever growing. Commodity markets started with farmers and commodity producers wanting to have the security of knowing what price they would receive in the future for their production, so they offered their crops or production for delivery in a specific quantity and at a specific time.
Buyers of those deliveries then traded those rights until the expiry of that particular delivery. These markets are highly volatile and and are a very active trading forum. Since most trades are done on margin, profits and losses can be very large and occur very quickly.
Currency Markets are forums where currencies from around the world are measured in relation to other currencies or baskets of other currencies, and are bought and sold with markets moving quickly and then the latest trade establishing the actual exchange rate between currencies, which is continually fluctuating.
Gold and Precious Metals Markets
Gold, Silver and Precious Metals are traded as futures on the commodity markets, but they also have other lives. Precious metals, especially gold, are bought and sold by governments around the world as a part of their reserves. At various times, government stores of gold are increased or decreased. Precious metals also are perceived as a store of value by investors and are bought, sold or held by investors. Sometimes these holdings are indirect such as buying units in funds or ETF’s that buy gold, gold future, or gold derivatives, and to a lesser extent, silver and other precious metals. Cymorfund watches these markets and keeps investors informed.
There are many companies whose fortunes depend on the price and availability of these precious metals, such as gold explorers, producers or traders. Many investors prefer buying shares of public companies involved in these fields, as they are ore comfortable investing in the Equity Markets.
The metals market includes sub-sectors such as Rare Earth Minerals, both light and heavy, & Base Metals which includes zinc, copper, lead, molybdenum, and all the other metals that are used, mined, or found. Although we hear little about these other metals, they are essential to our civilization. For example, smart phones, TV’s and modern armaments require both Rare Earths and Base Metals. Most modern technology requires a mix of these metals. The ancient metals of copper and silver are used more today than ever before. To see some of these uses, visit our blog describing some of these uses.
A key facet of investing is understanding changing economies, populations, and wealth (buying power) of regions of the world and economies of the world. As the world shrinks in size, demographic effects in the Far East, or South America, or elsewhere quickly affect the price of commodities and of equities worldwide
Investors generally choose specific sectors to invest in, being those sectors that they believe they understand. The alternate view is that Investment Advisors often counsel their clients to mitigate their investing risk by allocating a portion of their investing dollars into a mix of sectors. Sectors may be geographic (different areas of the world), or the type of company that is being invested in. Some sectors include the technology sector, the manufacturing sector, the commodities sector, the transportation sector, the energy sector, the financial sector, and others, with sectors being further subdivided into smaller sub-sectors.
Of key interest to investors is the economy and the variances in supply and demand worldwide by consumers and industry. When the economy slows, or changes, or varies from region to region, it directly affects all markets and in particular the North American stock markets. Analysts and Advisors in the Investment Industry watch and wait for every bit of economic news. They make their stock picks and advises based on the economy and the effects of changes in the economy. Cymorfund often reports to its advisors on the trends and effects.