Recently on a podcast on Enterprise Podcast Network, Philip Diehl explained conditions that had driven the global market over the last decade. Those factors he said include volatility in the market, speculation on momentary funds and the rising value of the U.S. dollar. More importantly, Philip Diehl spelled out the things that were driving the current market including oil, weakness in the U.S dollar and geo-political conditions around the globe.
One condition that bears further exploration is the effect of China on world markets. China is experiencing a slow down of their economy that is having consequences throughout the world. It is the reason that George Soros has said that conditions are similar to 2008.
First, no one knows for sure exactly how much the Chinese economy has slowed down. Chinese authorities suggest that it is near eight percent. Many experts feel that the true number is much higher. One of the reasons that the economy is slowing down is that it is transferring from making goods to being a service based economy. Therefore, the slow down may be long term.
Despite efforts by the Chinese government to get people to buy homes, they are not responding. This has created a host of new homes on the market. Therefore, there is no need to build more, so the demand in China for iron ore, petroleum and other commodities has disappeared. These were products that China imported from Australia, Russia and other countries. Therefore, their economy has slowed too. This has happened in the United States as importers and exporters had to look for new market streams.
Since China has caused so much uncertainty, it is reasonable to worry about your investments. Philip Diehl has spent his life studying financial markets as the leader of the United States Mint, the United States Treasury and the Senate Committee on Finance. He highly recommends that you buy gold. It is the same advice that George Soros provides. According to Diehl, the best way to buy gold is from U.S. Money Reserve where he serves as president.
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