The Way of the Tai Chi Master is not an easy course to follow at first, especially with all those Monkeys chattering around you. But with practice, you can learn to accept volatility for what it truly IS: the natural state of affairs.
The governance arrangements of international agricultural commodity markets are ripe for an overhaul to reflect not only the changes in markets, consumption patterns and technologies of the past 40 years, but also to actively engage in the challenges of the future.
Sometimes investors will confuse recent successes and tend to be more aggressive. It can give you a false sense of investment prowess. Then things turn south, and you pay for it. So how does a poor investor figure out their risk tolerance?
The possible loss of eagerly anticipated labour reforms, financial restrictions and market contagion provide shorter term sources of turmoil. However, existing reforms are likely to continue, market retrenchment is healthy and to be exploited for longer term opportunities.
Investing is a voluntary activity, and it is our decision as investors, even part-timers, how much we choose to understand the products we trade. The information is generally out there, and if it's not, we can choose to pass.
The current financial markets are experiencing high volatility, gaining and losing in excess of 3% on a given day. Whether the current volatility is without a precedent, however, depends on how volatility is measured.
The oil price has skyrocketed over the past few months and the finger often points to Libya and claims of supply disruptions have dominated the press. However, are these claims grounded in fact or are we watching yet another sentiment driven bubble?