Sunday 14 December 2014

Concerns of Gulf investors could go well beyond oil | GulfNews.com

Concerns of Gulf investors could go well beyond oil | GulfNews.com:



"Gulf stock markets are worried enough about plummeting oil prices and their drain on regional liquidity, let alone anything else. When you read reports, as in Barron’s this week, that commodity funds are positioned for $35 a barrel, that’s not particularly surprising.



While the US economy gives some countervailing hope of pickup, local investors might well worry too about downward trends in Asia, which was expected to be the next, thematic locomotive keeping business activity worldwide on track.



Moreover, there’s a parallel with this region in play, relating to the use of finance to leverage returns, inherently creating the scope for the current volatility. Debt has remained at the core, unfortunately, of both market and economic momentum since the global financial crisis."



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