6 Things that Could Trigger a Global Financial Crisis
Posted: Sun Mar 13, 2016 10:02 am
1. Strong dollar
We know that the strong performance of the dollar crimps American exports and earnings overseas. Fragility in emerging markets influences companies in the technology, aerospace, consumer products, and luxury products industries. Devaluation of currencies together with excess capacity, caused by an abundance of investment in China, increases the possibility of deflation, which decreases pricing power. Lower oil prices have a negative influence on earnings and the value of energy producers’ assets.
At the same time, incomes and liquidity pressures cut activity in mergers and stock buybacks that supported values of equity. American stocks drop, and this negatively affects the ... (read more)