Yesterday, JP Morgan Chase at their investor conference, had CEO Jamie Dimon speaking positively about the banks earning potential and his view that the US economy and consumer remained strong.
The comments helped to boost the financial sector with J.P. Morgan’s shares rising around 7%.
Today, the Bank of America CEO, Brian Moynihan is on the wires saying that:
- Trading revenues are holding solid
- “Nothing will slow” the consumer down right now
- He notes that account balances are multiples bigger than pre-Covid levels
Increase regulation
Regulation
Regulation is a key attribute of any forex broker in the retail industry. When investing money with a brokerage it is important to first see if they are regulated as this affords several client protections and safeguards.The financial services industry is tightly regulated to help prevent illicit behavior and manipulation. This is not unlike any other industries with a high net worth, that rely on transparency.Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Why Regulation Matters in FXThere are several regulators globally that help police the forex industry. Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.First and foremost, regulators help ensure the filing of reports and transmission of data to help oversee and monitor the activity by brokerages. Moreover, regulators also serve as a deterrent against market abuse and malpractice by brokers. Brokers that engage in services with clients must adhere to a set of rules that ensure they are in fact authorized to provide investment activities in a given jurisdiction. Unfortunately, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, retail brokerages are also required to regularly file reports about their clients’ positions to the all requisite authorities. Brokers also typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.
Regulation is a key attribute of any forex broker in the retail industry. When investing money with a brokerage it is important to first see if they are regulated as this affords several client protections and safeguards.The financial services industry is tightly regulated to help prevent illicit behavior and manipulation. This is not unlike any other industries with a high net worth, that rely on transparency.Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Why Regulation Matters in FXThere are several regulators globally that help police the forex industry. Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.First and foremost, regulators help ensure the filing of reports and transmission of data to help oversee and monitor the activity by brokerages. Moreover, regulators also serve as a deterrent against market abuse and malpractice by brokers. Brokers that engage in services with clients must adhere to a set of rules that ensure they are in fact authorized to provide investment activities in a given jurisdiction. Unfortunately, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, retail brokerages are also required to regularly file reports about their clients’ positions to the all requisite authorities. Brokers also typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.
Read this Term has bank balance sheets in better condition. Account balances being higher provides some comfort from the imminent real estate drawdown
Drawdown
In financial trading, the drawdown represents the amount of money a trader can lose or has lost, following a series of losing trades. This is measured from the high of the trader’s capital to its low, over a given period of time. This is usually expressed as a percentage of a trader’s account. The current drawdown is simply the amount of money a trader’s balance has been reduced by in a given time, without necessarily closing out at that point.For example, if a trader placed an initial deposit of $4000, and started off suffering losing trades with his equity falling to $3000, in this case the trader’s drawdown would be $1000. When devising or refining a system, one of those most important statistics is the maximum drawdown. Traders typically back-test their systems in order to see what the maximum drawdown would have been over a specified time period. Assessing historical maximum drawdown by way of back-testing helps to inform the trader concerning the sustainability of the trading system. Why Drawdowns Matter for TradersDrawdowns are a necessary part of trading, since it’s impossible for a trader to have continuously winning streaks of course. The most successful traders are those who can devise a trading strategy which allows one to be able to handle long periods of losses, because these periods can and do occur. Any trader unprepared for such a scenario is putting their account at great risk. Thus, one of, if not the most important facet of trading is risk management, and knowledge of a strategy’s maximum drawdown facilitates in determining a particular investment’s financial risk.Despite extensive testing of a system’s historical drawdown, it’s never going to be sufficient proof that even further extended periods of losses won’t occur.
In financial trading, the drawdown represents the amount of money a trader can lose or has lost, following a series of losing trades. This is measured from the high of the trader’s capital to its low, over a given period of time. This is usually expressed as a percentage of a trader’s account. The current drawdown is simply the amount of money a trader’s balance has been reduced by in a given time, without necessarily closing out at that point.For example, if a trader placed an initial deposit of $4000, and started off suffering losing trades with his equity falling to $3000, in this case the trader’s drawdown would be $1000. When devising or refining a system, one of those most important statistics is the maximum drawdown. Traders typically back-test their systems in order to see what the maximum drawdown would have been over a specified time period. Assessing historical maximum drawdown by way of back-testing helps to inform the trader concerning the sustainability of the trading system. Why Drawdowns Matter for TradersDrawdowns are a necessary part of trading, since it’s impossible for a trader to have continuously winning streaks of course. The most successful traders are those who can devise a trading strategy which allows one to be able to handle long periods of losses, because these periods can and do occur. Any trader unprepared for such a scenario is putting their account at great risk. Thus, one of, if not the most important facet of trading is risk management, and knowledge of a strategy’s maximum drawdown facilitates in determining a particular investment’s financial risk.Despite extensive testing of a system’s historical drawdown, it’s never going to be sufficient proof that even further extended periods of losses won’t occur.
Read this Term (although I am sure there are plenty of winners and losers too).
Fed’s Bullard stated last week that he expects growth to remain above trend through the year. and that his perception is that the US will not go into a recession in 2022 or 2023.
Today however, the data – in particular the housing data – has the markets nervous, but off their low levels. The prices also remain above the cycle lows reached last week.
- The NASDAQ index is currently down -382 points or -3.31% at 11152.42. The low price reached 11092.48. The low price last week reached 11035.69.
- The S&P index is down -83.5 points or -2.08% at 3891.13. The low price reached 3875.13. That is still 65 points above the low price from last week at 3810.32.
- The Dow industrial average is down -382 points -1.2% at 31497. The low price reached 31365.59. The low last week reached 30635.76.
www.forexlive.com